Market Overview

What Does Dell's Debt Look Like?


Over the past three months, shares of Dell Technologies Inc. (NYSE: DELL) rose by 30.70%. Before having a look at the importance of debt, let's look at how much debt Dell Technologies has.

Dell Technologies's Debt

Based on Dell Technologies’s financial statement as of June 8, 2020, long-term debt is at $48.35 billion and current debt is at $8.38 billion, amounting to $56.73 billion in total debt. Adjusted for $12.23 billion in cash-equivalents, the company's net debt is at $44.50 billion.

To understand the degree of financial leverage a company has, shareholders look at the debt ratio. Considering Dell Technologies’s $120.24 billion in total assets, the debt-ratio is at 0.47. Generally speaking, a debt-ratio more than 1 means that a large portion of debt is funded by assets. As the debt-ratio increases, so the does the risk of defaulting on loans, if interest rates were to increase. Different industries have different thresholds of tolerance for debt-ratios. For example, a debt ratio of 25% might be higher for one industry, whereas normal for another.

Why Shareholders Look At Debt?

Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth. Due to its lower financing cost compared to equity, it becomes an attractive option for executives trying to raise capital.

Interest-payment obligations can impact the cash-flow of the company. Having financial leverage also allows companies to use additional capital for business operations, allowing equity owners to retain excess profit, generated by the debt capital.


Related Articles (DELL)

View Comments and Join the Discussion!

Posted-In: Debt InsightsNews Markets

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at