Dell (DELL) Quick Ratio : 1.12 (As of Jul. 2013)

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What is Dell Quick Ratio?

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Dell's quick ratio for the quarter that ended in Jul. 2013 was 1.12.

Dell has a quick ratio of 1.12. It generally indicates good short-term financial strength.

The historical rank and industry rank for Dell's Quick Ratio or its related term are showing as below:

DELL's Quick Ratio is not ranked ^*
in the Hardware industry.
Industry Median: 1.47
* Ranked among companies with meaningful Quick Ratio only.

Dell Quick Ratio Historical Data

The historical data trend for Dell's Quick Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Dell Quick Ratio Chart

Dell Annual Data

Trend

Jan04

Jan05

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Quick Ratio

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1.30

1.22

1.42

1.27

1.13

Dell Quarterly Data
	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13
Quick Ratio	Get a 7-Day Free Trial															1.24	1.11	1.13	1.11	1.12

Competitive Comparison of Dell's Quick Ratio

For the Computer Hardware subindustry, Dell's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dell's Quick Ratio Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Dell's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Dell's Quick Ratio falls into.

Dell Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Dell's Quick Ratio for the fiscal year that ended in Jan. 2013 is calculated as

Quick Ratio (A: Jan. 2013 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(27968	-	1382)	/	23439
	=	1.13

Dell's Quick Ratio for the quarter that ended in Jul. 2013 is calculated as

Quick Ratio (Q: Jul. 2013 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(26866	-	1468)	/	22756
	=	1.12

Dell (DELISTED:DELL) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.

Dell Quick Ratio Related Terms

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Dell (DELL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Dell Inc (DELISTED:DELL) » Definitions » Quick Ratio

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Address

Website

http://www.dell.com

Dell Inc is a Delaware Corporation, which was founded in 1984. The Company offers a range of technology solutions, including servers and networking products, storage products, services, software and peripherals, mobility products, and desktop PCs. The Company sells its products and services directly to customers through dedicated distribution channels, such as retailers, distributors, and resellers. Its business segments are Large Enterprise, Public, Small and Medium Business ('SMB'), and Consumer. Large Enterprise customers include large global and national corporate businesses. Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. SMB segment is focused on helping small and medium-sized businesses get the most out of their technology by offering scalable products, services, and solutions. Consumer segment is focused on delivering what customers want from the total technology experience of entertainment, mobility, gaming, and design. The Company designs, develops, manufactures, markets, sells, and supports a range of products, solutions, and services. The Company also provides various customer financial services to its Commercial and Consumer customers. Its enterprise solutions include servers, networking, and storage products. The Company's services include a range of configurable IT and business services, including infrastructure technology, consulting and applications, and product-related support services. The Company offers Dell-branded printers and displays and a multitude of competitively priced third-party peripheral products such as printers, televisions, notebook accessories, mice, keyboards, networking and wireless products, digital cameras, and other products. The Company also sells a range of third-party software products, including operating systems, business and office applications, anti-virus and related security software, entertainment software, and products in various other categories. Client Products offers a variety of mobility and desktop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, to its Commercial and Consumer customers. The Company offers or arranges various financing options and services for its Commercial and Consumer customers in the U.S. and Canada through Dell Financial Services ('DFS'). DFS offers a range of financial services, including originating, collecting, and servicing customer receivables related to the purchase of Dell products. DFS offers private label credit financing programs to qualified Consumer and Commercial customers and offers leases and fixed-term financing to Commercial customers. The Company sells its products and services directly to customers and through various other sales distribution channels, such as retailers, third-party solution providers, system integrators, and third-party resellers. Its customers include large global and national corpora