Dell Financial Strategy Analysis - 812 Words

Dell Financial Analysis Introduction In their latest full fiscal year, Dell Corporation (NASDAQ: DELL) generated global revenues of $62B, earning a Net Income of $3.4B. Of this figure, $19B is directly attributable to their mobility business initiatives, which have been the most profitable and fastest growing of any in the history of the company (Dell Investor Relations, 2012). Dell is known for their expertise in mass customization and lean manufacturing strategies predicated on one of the most efficient and well-managed supply chains in the high technology industry (Gunasekaran, Ngai, 2009). Despite a global recession Dell has also been able to sustain their profitability across several key metrics, shown in Appendix A, Dell Financial Ratio Analysis. Net Profit Margin % has grown from 3.998% to 5.626% from 2002 to 2012 in addition Return on Equity (ROE) has grown from 26.54% to 39.161% in the same period. These have been the positive aspects of the companys performance. There are troubling signs about Dells financial condition as well, as is shown in the Activity ratios. With Operating Cycles changing from 30.144 days to 67.547 days in ten years, in addition to Average Collection period changing from 30.237 days to 58.624 days changing in the same period, its clear Dell is struggling to increase profitability. All of this is reflected also in the latest Holding Period Return Ratio, which is -22.59%, indicating that investors are not valuing the Dell stock as anShow MoreRelatedDell Case Study Strategic Managemen1426 Words   |  6 PagesCASE STUDY- DELL INC ASSIGNMENT #2 By: Muhammad Salman ( Syed Ahmed Farooq Wasti ( Kamran Ullah Khan ( References: www.apple.com, www.dell.com, www.hp.com, www.ibm.com Finance.yahoo.com, www.gateway.com, www.sec.gov/edgar.shtml )_______ )_______ )_______ Introduction †¢ Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. 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WhichRead MoreBusiness Risk Evaluation for Dell Computer Corporation1580 Words   |  7 PagesBUSINESS RISK EVALUATION FOR DELL COMPUTER CORPORATION OPERATIONAL ANALYSIS: For the fiscal year ending February 2008, Dells net revenue totaled $61.1 billion, and its net income was $2.9 billion. The companys total assets valued $27.561 billion, with cash and equivalents making up the largest portion, which totaled $7.764 billion. The companys cash flow in operating activities was $3.949 billion, and had approximately 88,200 total employees, including around 82,700 regular employees and 5,500Read MoreLiquidity Financial Ratio Review Exercise Essay1284 Words   |  6 PagesLiquidity Financial Ratio Review Exercise Understanding the meaning of financial ratios is imperative to different stakeholders both within and outside of a company. Management reviews different ratios to measure how effective the strategies used to run the business are within a given time period. 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How well has he performed the five tasks of crafting and executing strategy that were discussed in Chapter 2 I was impressed with what Michael Dell has done for the company. Dells first company, PC’s Ltd. had a strategy of selling PC computers which mimicked IBM, except for a few minor components, wereRead MoreDell: New Horizons1392 Words   |  6 PagesExecutive Summary Dell is the most successful company in PC industry of 21st century. It has shown phenomenal growth record over the past decades listed as America’s third most admired company. Their core strength lies in Direct model offering closer customer interaction and Virtual Integration. This is giving a low cost advantage to Dell and its competitors are not able to imitate this model for all these years. The products of Dell are known for their quality, service on time delivery