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Dell Inc (NAS:DELL)
Debt to Equity
0.63 (As of Jul. 2013)

Dell Inc's current portion of long-term debt for the quarter that ended in Jul. 2013 was $2,736 Mil. Dell Inc's long-term debt for the quarter that ended in Jul. 2013 was $4,075 Mil. Dell Inc's total equity for the quarter that ended in Jul. 2013 was $10,781 Mil. Dell Inc's debt to equity for the quarter that ended in Jul. 2013 was 0.63.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.


Definition

Debt to Equity measures the financial leverage a company has.

Dell Inc's Debt to Equity Ratio for the fiscal year that ended in Jan. 2013 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(3843 + 5242) / 10680
=0.85

Dell Inc's Debt to Equity Ratio for the quarter that ended in Jul. 2013 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(2736 + 4075) / 10781
=0.63

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.


Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.


Related Terms

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Dell Inc Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
deb2equity 0.080.080.170.180.160.470.720.771.040.85

Dell Inc Quarterly Data

Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13
deb2equity 0.910.930.951.040.960.870.890.850.680.63
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