Stock Analysis on Net
Stock Analysis on Net

Dell Technologies Inc. (NYSE:DELL)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Dell Technologies Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jan 31, 2025 — = 5.76% × —
Feb 2, 2024 — = 3.91% × —
Feb 3, 2023 — = 2.73% × —
Jan 28, 2022 — = 6.00% × —
Jan 29, 2021 131.10% = 2.63% × 49.78
Jan 31, 2020 — = 3.88% × —

Based on: 10-K (reporting date: 2025-01-31), 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).

Three-Component Disaggregation of ROE

Dell Technologies Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jan 31, 2025 — = 4.81% × 1.20 × —
Feb 2, 2024 — = 3.63% × 1.08 × —
Feb 3, 2023 — = 2.39% × 1.14 × —
Jan 28, 2022 — = 5.50% × 1.09 × —
Jan 29, 2021 131.10% = 3.45% × 0.76 × 49.78
Jan 31, 2020 — = 5.01% × 0.78 × —

Based on: 10-K (reporting date: 2025-01-31), 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).

Five-Component Disaggregation of ROE

Dell Technologies Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jan 31, 2025 — = 0.91 × 0.78 × 6.76% × 1.20 × —
Feb 2, 2024 — = 0.82 × 0.72 × 6.11% × 1.08 × —
Feb 3, 2023 — = 0.75 × 0.73 × 4.37% × 1.14 × —
Jan 28, 2022 — = 0.85 × 0.81 × 7.99% × 1.09 × —
Jan 29, 2021 131.10% = 0.95 × 0.59 × 6.16% × 0.76 × 49.78
Jan 31, 2020 — = — × -0.52 × 1.91% × 0.78 × —

Based on: 10-K (reporting date: 2025-01-31), 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).

Two-Component Disaggregation of ROA

Dell Technologies Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jan 31, 2025 5.76% = 4.81% × 1.20
Feb 2, 2024 3.91% = 3.63% × 1.08
Feb 3, 2023 2.73% = 2.39% × 1.14
Jan 28, 2022 6.00% = 5.50% × 1.09
Jan 29, 2021 2.63% = 3.45% × 0.76
Jan 31, 2020 3.88% = 5.01% × 0.78

Based on: 10-K (reporting date: 2025-01-31), 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).

The primary reason for the increase in return on assets ratio (ROA) over 2025 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Dell Technologies Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jan 31, 2025 5.76% = 0.91 × 0.78 × 6.76% × 1.20
Feb 2, 2024 3.91% = 0.82 × 0.72 × 6.11% × 1.08
Feb 3, 2023 2.73% = 0.75 × 0.73 × 4.37% × 1.14
Jan 28, 2022 6.00% = 0.85 × 0.81 × 7.99% × 1.09
Jan 29, 2021 2.63% = 0.95 × 0.59 × 6.16% × 0.76
Jan 31, 2020 3.88% = — × -0.52 × 1.91% × 0.78

Based on: 10-K (reporting date: 2025-01-31), 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).

The primary reason for the increase in return on assets ratio (ROA) over 2025 year is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Dell Technologies Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jan 31, 2025 4.81% = 0.91 × 0.78 × 6.76%
Feb 2, 2024 3.63% = 0.82 × 0.72 × 6.11%
Feb 3, 2023 2.39% = 0.75 × 0.73 × 4.37%
Jan 28, 2022 5.50% = 0.85 × 0.81 × 7.99%
Jan 29, 2021 3.45% = 0.95 × 0.59 × 6.16%
Jan 31, 2020 5.01% = — × -0.52 × 1.91%

Based on: 10-K (reporting date: 2025-01-31), 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).

The primary reason for the increase in net profit margin ratio over 2025 year is the increase in operating profitability measured by EBIT margin ratio.