Dell Technologies Inc. — Earnings Quality Grade F
DELL · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 17 days (39 → 57)
AR outpaced revenue for 2 consecutive years
Revenue 18.8%, CFFO 147.4%. Cash follows revenue
Expense Quality
Inventory growth 55.4% exceeds COGS 22.2%
CapEx growth -0.7% vs revenue 18.8%. Normal
SG&A/Gross Profit = 49.0%. Normal
Gross margin 20.0%, change -2.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.88. Profits backed by cash
FCF $8.6B, FCF/NI = 1.44
Accruals ratio = -5.2%. Low accruals
Cash $11.5B covers only 37% of debt $31.5B
Balance Sheet Health
Goodwill+Intangibles $24.1B = -975% of equity. Manageable
Debt/EBITDA = 2.7x. Healthy
Other assets -4.8% vs revenue 18.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -0% YoY. Normal
Manipulation Score
M-Score = -2.15 (grey zone)
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10