Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Dell Technologies Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Dell Technologies Inc. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Dell Technologies Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Dell Technologies Inc. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Dell Technologies Inc. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Dell Technologies Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Dell Technologies Inc. operating cycle improved from 2022 to 2023 and from 2023 to 2024. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Dell Technologies Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Inventory Turnover
Dell Technologies Inc., inventory turnover 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) | |||||||
| Cost of net revenue | 67,556) | 79,615) | 79,306) | 64,807) | 63,221) | 65,568) | |
| Inventories | 3,622) | 4,776) | 5,898) | 3,402) | 3,281) | 3,649) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 18.65 | 16.67 | 13.45 | 19.05 | 19.27 | 17.97 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Apple Inc. | 28.87 | 33.82 | 45.20 | 32.37 | 41.75 | 39.40 | |
| Arista Networks Inc. | — | 1.15 | 1.32 | 1.64 | 1.74 | 3.55 | |
| Cisco Systems Inc. | 5.63 | 5.83 | 7.52 | 11.50 | 13.74 | 13.91 | |
| Super Micro Computer Inc. | — | 4.04 | 2.84 | 2.90 | 3.30 | 4.48 | |
| Inventory Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 17.81 | 20.20 | 22.66 | 25.52 | — | |
| Inventory Turnover, Industry | |||||||
| Information Technology | — | 7.98 | 8.59 | 10.42 | 11.15 | — | |
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 2024 Calculation
Inventory turnover = Cost of net revenue ÷ Inventories
= 67,556 ÷ 3,622 = 18.65
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Dell Technologies Inc. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
Receivables Turnover
Dell Technologies Inc., receivables turnover 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) | |
| Accounts receivable, net of allowance | 9,343) | 12,482) | 12,912) | 12,788) | 12,484) | 12,371) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 9.46 | 8.20 | 7.84 | 7.37 | 7.38 | 7.33 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Apple Inc. | 11.70 | 12.99 | 13.99 | 13.92 | 17.03 | 11.35 | |
| Arista Networks Inc. | — | 5.72 | 4.75 | 5.71 | 5.95 | 6.15 | |
| Cisco Systems Inc. | 8.05 | 9.74 | 7.79 | 8.64 | 9.01 | 9.45 | |
| Super Micro Computer Inc. | — | 6.20 | 6.23 | 7.67 | 8.27 | 8.89 | |
| Receivables Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 11.11 | 11.25 | 11.27 | 12.09 | — | |
| Receivables Turnover, Industry | |||||||
| Information Technology | — | 7.45 | 7.45 | 7.55 | 7.95 | — | |
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 2024 Calculation
Receivables turnover = Net revenue ÷ Accounts receivable, net of allowance
= 88,425 ÷ 9,343 = 9.46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Dell Technologies Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
Payables Turnover
Dell Technologies Inc., payables turnover 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) | |||||||
| Cost of net revenue | 67,556) | 79,615) | 79,306) | 64,807) | 63,221) | 65,568) | |
| Accounts payable | 19,389) | 18,598) | 27,143) | 21,696) | 20,065) | 19,213) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 3.48 | 4.28 | 2.92 | 2.99 | 3.15 | 3.41 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Apple Inc. | 3.05 | 3.42 | 3.49 | 3.89 | 4.01 | 3.50 | |
| Arista Networks Inc. | — | 5.13 | 7.33 | 5.27 | 6.23 | 9.41 | |
| Cisco Systems Inc. | 8.24 | 9.19 | 8.47 | 7.59 | 7.94 | 9.34 | |
| Super Micro Computer Inc. | — | 7.52 | 6.71 | 4.94 | 6.74 | 8.34 | |
| Payables Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 3.81 | 3.48 | 3.76 | 3.90 | — | |
| Payables Turnover, Industry | |||||||
| Information Technology | — | 4.78 | 4.24 | 4.62 | 4.91 | — | |
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 2024 Calculation
Payables turnover = Cost of net revenue ÷ Accounts payable
= 67,556 ÷ 19,389 = 3.48
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Dell Technologies Inc. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level. |
Working Capital Turnover
Dell Technologies Inc., working capital turnover 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) | |||||||
| Current assets | 35,947) | 42,351) | 45,033) | 43,567) | 36,868) | 36,138) | |
| Less: Current liabilities | 48,494) | 51,654) | 56,219) | 54,132) | 52,456) | 44,972) | |
| Working capital | (12,547) | (9,303) | (11,186) | (10,565) | (15,588) | (8,834) | |
| Net revenue | 88,425) | 102,301) | 101,197) | 94,224) | 92,154) | 90,621) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Apple Inc. | — | — | — | 39.10 | 7.16 | 4.56 | |
| Arista Networks Inc. | — | 0.90 | 1.03 | 0.80 | 0.76 | 0.84 | |
| Cisco Systems Inc. | — | 4.73 | 4.65 | 3.88 | 2.70 | 3.24 | |
| Super Micro Computer Inc. | — | 3.95 | 3.89 | 3.96 | 3.77 | 4.29 | |
| Working Capital Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 59.87 | — | 31.78 | 9.38 | — | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | — | 5.83 | 6.45 | 4.32 | 3.29 | — | |
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 2024 Calculation
Working capital turnover = Net revenue ÷ Working capital
= 88,425 ÷ -12,547 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Dell Technologies Inc., average inventory processing period 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 | |||||||
| Inventory turnover | 18.65 | 16.67 | 13.45 | 19.05 | 19.27 | 17.97 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 20 | 22 | 27 | 19 | 19 | 20 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Apple Inc. | 13 | 11 | 8 | 11 | 9 | 9 | |
| Arista Networks Inc. | — | 318 | 276 | 222 | 210 | 103 | |
| Cisco Systems Inc. | 65 | 63 | 49 | 32 | 27 | 26 | |
| Super Micro Computer Inc. | — | 90 | 128 | 126 | 110 | 81 | |
| Average Inventory Processing Period, Sector | |||||||
| Technology Hardware & Equipment | — | 20 | 18 | 16 | 14 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Information Technology | — | 46 | 43 | 35 | 33 | — | |
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 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 18.65 = 20
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Dell Technologies Inc. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024. |
Average Receivable Collection Period
Dell Technologies Inc., average receivable collection period 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 | |||||||
| Receivables turnover | 9.46 | 8.20 | 7.84 | 7.37 | 7.38 | 7.33 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 39 | 45 | 47 | 50 | 49 | 50 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Apple Inc. | 31 | 28 | 26 | 26 | 21 | 32 | |
| Arista Networks Inc. | — | 64 | 77 | 64 | 61 | 59 | |
| Cisco Systems Inc. | 45 | 37 | 47 | 42 | 41 | 39 | |
| Super Micro Computer Inc. | — | 59 | 59 | 48 | 44 | 41 | |
| Average Receivable Collection Period, Sector | |||||||
| Technology Hardware & Equipment | — | 33 | 32 | 32 | 30 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | — | 49 | 49 | 48 | 46 | — | |
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 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.46 = 39
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Dell Technologies Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024. |
Operating Cycle
Dell Technologies Inc., operating cycle calculation, comparison to benchmarks
No. days
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 20 | 22 | 27 | 19 | 19 | 20 | |
| Average receivable collection period | 39 | 45 | 47 | 50 | 49 | 50 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 59 | 67 | 74 | 69 | 68 | 70 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Apple Inc. | 44 | 39 | 34 | 37 | 30 | 41 | |
| Arista Networks Inc. | — | 382 | 353 | 286 | 271 | 162 | |
| Cisco Systems Inc. | 110 | 100 | 96 | 74 | 68 | 65 | |
| Super Micro Computer Inc. | — | 149 | 187 | 174 | 154 | 122 | |
| Operating Cycle, Sector | |||||||
| Technology Hardware & Equipment | — | 53 | 50 | 48 | 44 | — | |
| Operating Cycle, Industry | |||||||
| Information Technology | — | 95 | 92 | 83 | 79 | — | |
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 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 20 + 39 = 59
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Dell Technologies Inc. operating cycle improved from 2022 to 2023 and from 2023 to 2024. |
Average Payables Payment Period
Dell Technologies Inc., average payables payment period 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 | |||||||
| Payables turnover | 3.48 | 4.28 | 2.92 | 2.99 | 3.15 | 3.41 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 105 | 85 | 125 | 122 | 116 | 107 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Apple Inc. | 120 | 107 | 105 | 94 | 91 | 104 | |
| Arista Networks Inc. | — | 71 | 50 | 69 | 59 | 39 | |
| Cisco Systems Inc. | 44 | 40 | 43 | 48 | 46 | 39 | |
| Super Micro Computer Inc. | — | 49 | 54 | 74 | 54 | 44 | |
| Average Payables Payment Period, Sector | |||||||
| Technology Hardware & Equipment | — | 96 | 105 | 97 | 94 | — | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | — | 76 | 86 | 79 | 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 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.48 = 105
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Dell Technologies Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 20 | 22 | 27 | 19 | 19 | 20 | |
| Average receivable collection period | 39 | 45 | 47 | 50 | 49 | 50 | |
| Average payables payment period | 105 | 85 | 125 | 122 | 116 | 107 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | -46 | -18 | -51 | -53 | -48 | -37 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Apple Inc. | -76 | -68 | -71 | -57 | -61 | -63 | |
| Arista Networks Inc. | — | 311 | 303 | 217 | 212 | 123 | |
| Cisco Systems Inc. | 66 | 60 | 53 | 26 | 22 | 26 | |
| Super Micro Computer Inc. | — | 100 | 133 | 100 | 100 | 78 | |
| Cash Conversion Cycle, Sector | |||||||
| Technology Hardware & Equipment | — | -43 | -55 | -49 | -50 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Information Technology | — | 19 | 6 | 4 | 5 | — | |
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 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 20 + 39 – 105 = -46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Dell Technologies Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |