Does the tool provide reporting capabilities?

Yes, Explorer provides basic content reporting capabilities.

The current content report covers the following topics:
- quota consumed by the current document versions
- quota consumed by the major/minor versions
- number of items per type (document, folder, ..)
- checked out documents
- large documents
- list with documents having versions

The report also allows users to delete a subset of the major/minor versions for a specific document. For example, if a document has 20 minor versions the user can delete 17 versions and keep the 3 most recent minor versions. This reduces the risk that someone unintentionally deletes relevant information. The standard SharePoint / OneDrive for Business functionality only allows deletion of all versions and does not support excluding a number of versions.

Note: the report is security trimmed. Hence the user needs to have sufficient permissions to "see" items and also to delete document versions. The report is typically generated by a user with site owner permissions.