Dell Technologies Revenue vs. Operating Margin

DELL Stock  USD 116.79  7.02  5.67%   
Based on Dell Technologies' profitability indicators, Dell Technologies' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Dell Technologies' ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2012-10-31
Previous Quarter
25 B
Current Value
24.4 B
Quarterly Volatility
4.8 B
 
Yuan Drop
 
Covid
At this time, Dell Technologies' Days Sales Outstanding is quite stable compared to the past year. Operating Cash Flow Sales Ratio is expected to rise to 0.11 this year, although the value of EV To Sales will most likely fall to 0.73. At this time, Dell Technologies' Change To Netincome is quite stable compared to the past year. Net Income Per Share is expected to rise to 6.38 this year, although the value of Net Income Applicable To Common Shares will most likely fall to about 1.5 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.240.236
Fairly Up
Slightly volatile
Operating Profit Margin0.0420.0589
Way Down
Slightly volatile
For Dell Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dell Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dell Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dell Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dell Technologies over time as well as its relative position and ranking within its peers.
  

Dell Technologies' Revenue Breakdown by Earning Segment

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Is Technology Hardware, Storage & Peripherals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dell Technologies. If investors know Dell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dell Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.857
Earnings Share
5.65
Revenue Per Share
129.078
Quarterly Revenue Growth
0.091
Return On Assets
0.0438
The market value of Dell Technologies is measured differently than its book value, which is the value of Dell that is recorded on the company's balance sheet. Investors also form their own opinion of Dell Technologies' value that differs from its market value or its book value, called intrinsic value, which is Dell Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dell Technologies' market value can be influenced by many factors that don't directly affect Dell Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dell Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Dell Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dell Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dell Technologies Operating Margin vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dell Technologies's current stock value. Our valuation model uses many indicators to compare Dell Technologies value to that of its competitors to determine the firm's financial worth.
Dell Technologies is rated as one of the top companies in revenue category among its peers. It also is one of the top stocks in operating margin category among its peers . The ratio of Revenue to Operating Margin for Dell Technologies is about  1,325,712,143,928 . At this time, Dell Technologies' Total Revenue is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Dell Technologies by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Dell Revenue vs. Competition

Dell Technologies is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Information Technology industry is currently estimated at about 602.05 Billion. Dell Technologies retains roughly 88.42 Billion in revenue claiming about 15% of equities under Information Technology industry.

Dell Operating Margin vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Dell Technologies

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
88.42 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Dell Technologies

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.07 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Dell Operating Margin Comparison

Dell Technologies is currently under evaluation in operating margin category among its peers.

Dell Technologies Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dell Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dell Technologies will eventually generate negative long term returns. The profitability progress is the general direction of Dell Technologies' change in net profit over the period of time. It can combine multiple indicators of Dell Technologies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-800 M-760 M
Operating Income5.2 B5.5 B
Income Before Tax3.9 B4.1 B
Net Income Applicable To Common Shares2.2 B1.5 B
Net Income3.2 B3.4 B
Income Tax Expense692 M726.6 M
Total Other Income Expense Net-1.5 B-1.4 B
Net Income From Continuing Ops3.2 B3.4 B
Net Interest Income-1.2 B-1.3 B
Interest Income305 M289.8 M
Non Operating Income Net Other-1.7 B-1.8 B
Change To Netincome1.4 B1.4 B
Net Income Per Share 4.55  6.38 
Income Quality 2.72  2.01 
Net Income Per E B T 0.83  0.86 

Dell Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dell Technologies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dell Technologies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dell Technologies' important profitability drivers and their relationship over time.

Use Dell Technologies in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dell Technologies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dell Technologies will appreciate offsetting losses from the drop in the long position's value.

Dell Technologies Pair Trading

Dell Technologies Pair Trading Analysis

The ability to find closely correlated positions to Dell Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dell Technologies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dell Technologies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dell Technologies to buy it.
The correlation of Dell Technologies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dell Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dell Technologies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dell Technologies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Dell Technologies position

In addition to having Dell Technologies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Long Short Funds
Long Short Funds Theme
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long Short Funds Theme or any other thematic opportunities.
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When determining whether Dell Technologies is a strong investment it is important to analyze Dell Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Dell Technologies' future performance. For an informed investment choice regarding Dell Stock, refer to the following important reports:
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For more information on how to buy Dell Stock please use our How to buy in Dell Stock guide.
You can also try the Stocks Directory module to find actively traded stocks across global markets.
To fully project Dell Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dell Technologies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Dell Technologies' income statement, its balance sheet, and the statement of cash flows.
Potential Dell Technologies investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Dell Technologies investors may work on each financial statement separately, they are all related. The changes in Dell Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Dell Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.