Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Dell Technologies Inc., ROIC calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 2,835) | 5,638) | 7,874) | 7,942) | 5,052) | 1,396) | |
| Invested capital2 | 53,565) | 57,982) | 53,988) | 83,528) | 81,348) | 80,442) | |
| Performance Ratio | |||||||
| ROIC3 | 5.29% | 9.72% | 14.58% | 9.51% | 6.21% | 1.74% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Apple Inc. | 183.43% | 156.53% | 217.85% | 214.07% | 161.85% | 105.51% | |
| Arista Networks Inc. | — | 43.29% | 38.75% | 53.73% | 36.06% | 41.53% | |
| Cisco Systems Inc. | 13.27% | 21.42% | 21.11% | 20.34% | 24.12% | 18.12% | |
| Super Micro Computer Inc. | — | 25.75% | 14.13% | 8.04% | 5.68% | 10.74% | |
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
1 NOPAT. See details »
2 Invested capital. See details »
3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,835 ÷ 53,565 = 5.29%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Dell Technologies Inc. ROIC deteriorated from 2022 to 2023 and from 2023 to 2024. |
Decomposition of ROIC
Dell Technologies Inc., decomposition of ROIC
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2024 year is the decrease in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Dell Technologies Inc., OPM calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 2,835) | 5,638) | 7,874) | 7,942) | 5,052) | 1,396) | |
| Add: Cash operating taxes2 | 1,042) | 1,762) | 1,523) | 1,071) | 1,348) | 1,623) | |
| Net operating profit before taxes (NOPBT) | 3,878) | 7,400) | 9,397) | 9,012) | 6,400) | 3,020) | |
| Net revenue | 88,425) | 102,301) | 101,197) | 94,224) | 92,154) | 90,621) | |
| Add: Increase (decrease) in deferred revenue | (1,141) | 2,713) | 1,981) | 3,001) | 3,790) | 3,194) | |
| Adjusted net revenue | 87,284) | 105,014) | 103,178) | 97,225) | 95,944) | 93,815) | |
| Profitability Ratio | |||||||
| OPM3 | 4.44% | 7.05% | 9.11% | 9.27% | 6.67% | 3.22% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Apple Inc. | 31.84% | 29.83% | 30.44% | 30.11% | 24.73% | 24.69% | |
| Arista Networks Inc. | — | 43.42% | 37.18% | 37.40% | 32.62% | 33.40% | |
| Cisco Systems Inc. | 26.47% | 29.22% | 29.29% | 28.52% | 30.47% | 25.46% | |
| Super Micro Computer Inc. | — | 11.58% | 7.18% | 3.35% | 2.63% | 4.41% | |
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
OPM = 100 × NOPBT ÷ Adjusted net revenue
= 100 × 3,878 ÷ 87,284 = 4.44%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Dell Technologies Inc. OPM deteriorated from 2022 to 2023 and from 2023 to 2024. |
Turnover of Capital (TO)
Dell Technologies Inc., TO calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net revenue | 88,425) | 102,301) | 101,197) | 94,224) | 92,154) | 90,621) | |
| Add: Increase (decrease) in deferred revenue | (1,141) | 2,713) | 1,981) | 3,001) | 3,790) | 3,194) | |
| Adjusted net revenue | 87,284) | 105,014) | 103,178) | 97,225) | 95,944) | 93,815) | |
| Invested capital1 | 53,565) | 57,982) | 53,988) | 83,528) | 81,348) | 80,442) | |
| Efficiency Ratio | |||||||
| TO2 | 1.63 | 1.81 | 1.91 | 1.16 | 1.18 | 1.17 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Apple Inc. | 7.82 | 6.36 | 8.46 | 8.61 | 7.63 | 5.12 | |
| Arista Networks Inc. | — | 1.32 | 1.45 | 1.70 | 1.28 | 1.36 | |
| Cisco Systems Inc. | 0.62 | 1.01 | 0.89 | 0.90 | 0.96 | 0.95 | |
| Super Micro Computer Inc. | — | 2.95 | 2.35 | 2.77 | 2.69 | 3.09 | |
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
1 Invested capital. See details »
2 2024 Calculation
TO = Adjusted net revenue ÷ Invested capital
= 87,284 ÷ 53,565 = 1.63
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Dell Technologies Inc. TO deteriorated from 2022 to 2023 and from 2023 to 2024. |
Effective Cash Tax Rate (CTR)
Dell Technologies Inc., CTR calculation, comparison to benchmarks
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 2,835) | 5,638) | 7,874) | 7,942) | 5,052) | 1,396) | |
| Add: Cash operating taxes2 | 1,042) | 1,762) | 1,523) | 1,071) | 1,348) | 1,623) | |
| Net operating profit before taxes (NOPBT) | 3,878) | 7,400) | 9,397) | 9,012) | 6,400) | 3,020) | |
| Tax Rate | |||||||
| CTR3 | 26.88% | 23.81% | 16.21% | 11.88% | 21.07% | 53.76% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Apple Inc. | 26.37% | 17.45% | 15.42% | 17.39% | 14.22% | 16.57% | |
| Arista Networks Inc. | — | 24.58% | 28.06% | 15.61% | 13.60% | 8.55% | |
| Cisco Systems Inc. | 18.88% | 27.06% | 19.15% | 20.48% | 17.40% | 24.92% | |
| Super Micro Computer Inc. | — | 24.68% | 16.27% | 13.44% | 19.78% | 21.16% | |
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,042 ÷ 3,878 = 26.88%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Dell Technologies Inc. CTR increased from 2022 to 2023 and from 2023 to 2024. |