Dell Technologies Inc. (NYSE:DELL)

Current Ratio

The current ratio exhibits moderate fluctuations over the observed periods, generally remaining below 1. It started at 0.82 and dipped to a low of 0.72 before rebounding toward 0.85 in the later quarters. This pattern indicates that the company consistently maintains current assets lower than current liabilities, which may suggest tight liquidity management or a working capital strategy emphasizing efficiency. The slight upward trend in the last several quarters suggests improving short-term financial health.

Quick Ratio

The quick ratio follows a somewhat similar trajectory to the current ratio but registers consistently lower values, starting at 0.56 and declining to around 0.40 in the middle periods, then gradually increasing to 0.55 by the final quarter. This indicates a slightly weaker position when considering only the most liquid assets excluding inventories. The mid-term decline points to a decrease in readily available assets relative to current liabilities, which could signal increased reliance on inventory or slower conversion of receivables.

Cash Ratio

The cash ratio remains notably low throughout the periods, often falling below 0.20 and declining as low as 0.08 at times, before modestly recovering to 0.19 by the end. This suggests limited immediate cash and cash-equivalents relative to current liabilities, highlighting constrained immediate liquidity. The persistent low ratio indicates a cautious cash holding policy or significant short-term obligations that limit available cash reserves.

Overall Liquidity Trends

The overall liquidity position reflects prudent management but reveals periods of tightening liquidity, especially when focusing on highly liquid assets (cash and equivalents). The improvements in the current and quick ratios toward the end may reflect better asset management or reduced obligations. However, the consistently low cash ratio signals potential reliance on converting other current assets to meet short-term liabilities.

Trend in Current Assets

The current assets exhibit fluctuations throughout the observed periods. Starting near 40.9 billion USD in early May 2020, the figures show a slight dip and recovery pattern, peaking notably in late October 2021 at approximately 57.2 billion USD. Following this peak, current assets decline sharply and undergo several smaller fluctuations, ultimately ranging between 34.6 billion and 38 billion USD in the latest quarters. Overall, there is a diminishing level of current assets from the peak towards the end of the timeline.

Trend in Current Liabilities

Current liabilities demonstrate a generally elevated and somewhat volatile trend. The initial values around 50 billion USD increase steadily to reach a maximum near 69.7 billion USD in October 2021, coinciding with the peak in current assets. Subsequently, current liabilities decline but remain high, fluctuating between roughly 47 billion and 55 billion USD, with some quarters showing rises and falls. Although there is some reduction from the peak, the levels remain significant compared to the starting point.

Current Ratio Analysis

The current ratio remains below 1.0 throughout the period, indicating that current liabilities consistently exceed current assets. From May 2020 to October 2025, the ratio oscillates mostly between 0.72 and 0.85, showing relatively minor variation. The highest current ratios occur at the beginning and end of the timeline (around 0.82 to 0.85), suggesting modest improvements in liquidity during these times. The lowest points, near 0.72 to 0.74, occur in mid to late 2024. Overall, the liquidity position is stable but constrained, with little evidence of a significant shift towards stronger short-term financial health.

Summary of Financial Position Dynamics

The company's short-term financial position reflects cyclical fluctuations in both assets and liabilities, with a pronounced peak in late 2021 for both categories. Subsequent declines in current assets combined with persistently high liabilities contribute to maintaining a current ratio well below 1. These patterns suggest the company may face ongoing pressures related to working capital management, requiring attention to optimize liquidity and ensure the ability to meet short-term obligations efficiently.

The analysis of the quarterly financial data reveals the following patterns and insights related to liquidity and short-term financial stability:

Total Quick Assets

The total quick assets show noticeable fluctuations over the observed periods. Beginning around 27,778 million USD, the figure reached a peak of approximately 41,553 million USD by October 2021, indicating a significant increase in highly liquid assets during that timeframe. After this peak, a gradual decline is observed, reaching around 19,053 million USD by May 2024, followed by a moderate recovery towards the end of the period, ending at roughly 27,717 million USD in October 2025. This pattern suggests periods of both accumulation and depletion of readily available assets.

Current Liabilities

Current liabilities also exhibit considerable variation, starting at about 50,011 million USD and rising notably to 69,702 million USD by October 2021. Following this peak, liabilities generally decrease, stabilizing in the range of approximately 46,527 to 54,862 million USD in subsequent quarters. The fluctuations in current liabilities appear somewhat correlated with the changes in quick assets, with peaks occurring around the same period.

Quick Ratio

The quick ratio, which measures the company's ability to cover short-term obligations with its most liquid assets, ranged predominantly between 0.40 and 0.60. The ratio experienced its highest point at 0.60 in October 2021, coinciding with the peak in quick assets, and fell to lows near 0.40 in early to mid-2024. A notable recovery is observed toward the last quarters, rising back to around 0.55. Throughout the period, the quick ratio remained below 1.0, indicating that quick assets were consistently less than current liabilities, suggesting potential liquidity pressure.

Overall, the data indicates cycles of liquidity strengthening and weakening, with notable peaks in both quick assets and liabilities around late 2021. The consistent sub-unity quick ratio highlights an ongoing challenge in maintaining sufficient liquid assets to meet short-term liabilities immediately, warranting close financial management focus to ensure adequate liquidity coverage in future quarters.

The financial data over multiple quarters reveals notable trends in liquidity and current obligations. The total cash assets exhibit considerable fluctuation throughout the periods assessed. Initially, cash assets are relatively stable, ranging around 11 to 14 billion USD, with a peak at the end of October 2021 reaching over 22 billion USD. Following this peak, a general downward trend is observed, with cash holdings dipping below 5 billion USD in late 2022, before partially recovering to a range between 4.5 and 9.5 billion USD in the most recent quarters.

Current liabilities demonstrate variability but generally remain within a high range, mostly spanning between 46 and 70 billion USD. There is an upward spike at the end of October 2021, coinciding with the peak in total cash assets, but subsequent periods show a decline followed by moderate fluctuations. The liabilities do not show a consistent decreasing or increasing trend but instead fluctuate around the high values noted.

The cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, mirrors the fluctuations in cash assets relative to current liabilities. Beginning around 0.24 to 0.26 in early periods, it rises briefly to 0.32 during the October 2021 peak in cash assets. Following this, there is a marked decline to a low of 0.08 in early 2025, indicating lower liquidity relative to current obligations. Recently, modest improvement is noted as the ratio inches up toward 0.19, although it remains well below earlier peaks.

Overall, the data depicts a company managing relatively high current liabilities against a cash reserve that fluctuates significantly, reflecting potential variability in liquidity management. The temporary surge in cash assets and cash ratio in late 2021 suggests a strategic accumulation of liquidity which was not sustained. The subsequent decline raises considerations about potential stress on short-term financial flexibility, though the partial recovery in recent quarters indicates some restoration of liquidity buffers.

Total cash assets:

Fluctuated considerably, peaking around late 2021, followed by a general decrease and partial recovery.

Current liabilities:

Remained consistently high with some volatility, peaking alongside cash assets in late 2021 with no strong directional trend afterward.

Cash ratio:

Initially moderate to strong, increased sharply in late 2021, then declined significantly before a modest rebound, reflecting changing liquidity relative to liabilities.