Dell (DELL) Asset Turnover : 0.32 (As of Jul. 2013)

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What is Dell Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Dell's Revenue for the three months ended in Jul. 2013 was $14,514.00 Mil. Dell's Total Assets for the quarter that ended in Jul. 2013 was $45,331.00 Mil. Therefore, Dell's Asset Turnover for the quarter that ended in Jul. 2013 was 0.32.

Asset Turnover is linked to ROE % through Du Pont Formula. Dell's annualized ROE % for the quarter that ended in Jul. 2013 was 7.58%. It is also linked to ROA % through Du Pont Formula. Dell's annualized ROA % for the quarter that ended in Jul. 2013 was 1.80%.

Dell Asset Turnover Historical Data

The historical data trend for Dell's Asset Turnover 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 Asset Turnover Chart

Dell Annual Data

Trend

Jan04

Jan05

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Asset Turnover

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2.26

1.76

1.70

1.49

1.24

Dell Quarterly Data
	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13
Asset Turnover	Get a 7-Day Free Trial															0.33	0.31	0.31	0.31	0.32

Competitive Comparison of Dell's Asset Turnover

For the Computer Hardware subindustry, Dell's Asset Turnover, along with its competitors' market caps and Asset Turnover 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 Asset Turnover Distribution in the Hardware Industry

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

* The bar in red indicates where Dell's Asset Turnover falls into.

Dell Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

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

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Jan. 2013 )	/	( (Total Assets (A: Jan. 2012 )	+	Total Assets (A: Jan. 2013 ))	/ count )
=	56940	/	( (44533	+	47540)	/ 2 )
=	56940	/	46036.5
=	1.24

Dell's Asset Turnover for the quarter that ended in Jul. 2013 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Jul. 2013 )	/	( (Total Assets (Q: Apr. 2013 )	+	Total Assets (Q: Jul. 2013 ))	/ count )
=	14514	/	( (44791	+	45871)	/ 2 )
=	14514	/	45331
=	0.32

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Dell (DELISTED:DELL) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Dell's annulized ROE % for the quarter that ended in Jul. 2013 is

	ROE %^**		(Q: Jul. 2013 )
=	Net Income	/	Total Stockholders Equity
=	816	/	10760
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(816 / 58056)	*	(58056 / 45331)	*	(45331/ 10760)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	1.41 %	*	1.2807	*	4.2129
=	ROA %	*	Equity Multiplier
=	1.80 %	*	4.2129
=	7.58 %

Note: The Net Income data used here is four times the quarterly (Jul. 2013) net income data. The Revenue data used here is four times the quarterly (Jul. 2013) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Dell's annulized ROA % for the quarter that ended in Jul. 2013 is

	ROA %		(Q: Jul. 2013 )
=	Net Income	/	Total Assets
=	816	/	45331
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(816 / 58056)	*	(58056 / 45331)
=	Net Margin %	*	Asset Turnover
=	1.41 %	*	1.2807
=	1.80 %

Note: The Net Income data used here is four times the quarterly (Jul. 2013) net income data. The Revenue data used here is four times the quarterly (Jul. 2013) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Dell Asset Turnover Related Terms

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Dell (DELL) Business Description

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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