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MichelleFlemingFIN306DELL.pptx

Michelle Fleming

Dell

1

Dell

American multinational computer technology corporation

Intense competitive environment

Many merges and acquisitions have given competitors advantages

Foreign competitors are penetrating free markets

Poor economic climate has only slightly negatively affected Dell

Government’s focus on electronic waste may affect Dell’s costs

Financial Source

3

Consolidated statement of financial position

Assets

Liabilities & Stockholders’ Equity

Financial Source

Short Term liquidity

HP Financial Source

Activity ratios

HP Financial Source

Financial Leverage

HP Financial Source

Profitability ratios

HP Financial Source

8

Market Ratios

HP Financial Source

9

Common-Sized income statement

Financial Source

10

Capital structure

Long-term borrowing cannot be used to finance operations indefinitely

Debt as a proportion of total assets and equity was relatively stable

Unpredictable average payment period

Increased long-term debt

Decreased debt ratio

Investors willing to pay more for Dell

Increased profitability ratios

Dell

Strengths

Weaknesses

Recommend to invest in dell

Increased Revenue

Assets covering debts

Favorable investment potential