The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from44% in 2019 to 3.63% in 2023.
The average EBIT Margin for the period under analysis was 5.96%, with 2021 and 2019 performing the worst and best,
In the current year, DELL was able to cover its interest liabilities 95 times in the current year- compared to 2019 when it was 2.67 times.
The Asset turnover stood at06 times in 2023 from 0.74 in 2018, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of DELL has increased year on year. The revenue increased by 2.19% between 2019 and 2020 and a further 76% increase was recorded between 2020 and 2021. There also occurred an decrease of –13.56% between 2022 and 2023 (the current period).
DELL’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks strong, as the current ratio/acid test decreased from 82:1/0.59:1 to 0.74:1/0.53:1 in the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
DELL is both equity and debt financed.
The debt-to-equity (D/E) ratio has been mixed year on year. The gearing position of the company appears stood at -10.81 in the current year.
