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Dell Inc. James Mauney 080. Executive Summary. My analysis of Dell Inc. resulted in the conclusion of Dell Inc. being a stable and growing company. www.dell.com/investor. Part A. Introduction. Kevin B. Rollins One Dell Way, Round Rock, TX 78682-2222 Jan. 28, 2005,
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Executive Summary My analysis of Dell Inc. resulted in the conclusion of Dell Inc. being a stable and growing company. www.dell.com/investor
Part A. Introduction • Kevin B. Rollins • One Dell Way, Round Rock, TX 78682-2222 • Jan. 28, 2005, • Computer Technology and Services • International Geographic sales
Part A. Audit Report • PricewaterhouseCoopers LLP, Austin, Texas
Part A. Stock Market Information • 41.06 per share • Dividend per share • Date of the above information • BUY it has has a minimum 18% current growth rate
Part B. Industry Situation and Company Plans The computer technology industry is the fastest growing industry today. Dell is planning to improve growth by gearing more towards the business market vs. the current role of the end user marketing campaigns.
Part C. Income Statement Multistep Income Statement. The increases are steady and profitable.
Part C. Balance Sheet Insert a table showing that Assets=Liabilities + Stockholders’ Equity for the past two years. In your own words, comment in general on the increases or decreases in the balance sheet accounts. Which accounts changed the most?
Part C. Statement of Cash Flows Are cash flows from operations more or less than net income for the past two years? Is the company growing through investing activities, i.e., buying property, plant and equipment and other long lived assets? What is the company’s primary source of financing, i.e., long-term loans, stock sales? Overall, has cash increased or decreased over the past two years?
Part D. Accounting Policies What are the significant accounting policies, if any, relating to revenue recognition, cash, short-term investments, inventories, and property and equipment? List the topics of the notes to the financial statements.
Part E. Financial AnalysisLiquidity Ratios For the past two years, calculate and comment on: • Working Capital • Current Ratio • Receivable turnover • Average days’ sales uncollected • Inventory turnover • Average days’ inventory on hand
Part E. Financial AnalysisProfitability Ratios For the past two years, calculate and comment on: • Profit margin • Asset turnover • Return on assets • Return on equity
Part E. Financial AnalysisSolvency Ratio For the past two years, calculate and comment on: • Debt to equity
Part E. Financial AnalysisMarket Strength Ratios For the past two years, calculate and comment on: • Over the past two years Dell Inc. shares have increased in cost by ten dollars per year.