Dell Inc.

Dell is a multinational information technology corporation based in Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. In year 1984 Dell was founded and named after its founder Michael Dell, who dropped out of school in order to provide his full-time for his newly started business, after getting about $300,000 from his family as a mean of expansion. Dell is one of the largest technological corporations in the world, with more than 96,000 employees worldwide. Dell has grown since its prime remarkable mergers and acquisitions together with Alienware (2006) and Perot Systems (2009). Dell is considered as one of the world's top suppliers of personal computers, where it offers a wide range of technology products for the consumer, education, enterprise, and government sectors. In addition to a full line of desktop and notebook PCs, Dell offers network servers, data storage systems, printers, Ethernet switches, and peripherals, such as displays and projectors. Dell is well known for its advance and innovations in supply chain management and a well established e-commerce. History: Dell’s origin is back to the year of 1984; Michael Dell started the company while he was still a student at University of Texas at Austin at the time. Where the beginning of his business was from his dorm-room, selling IBM PCcompatible computers built from stock components. The following year after foundation, Dell came out with their very first computer called the Turbo which had an eight-megahertz processor that was advertised for its systems in national computer magazines for sale directly to consumers. The company grossed more than $73 million in its first year of trading. Michael Dell initiated his trading through the idea of selling personal computer systems directly to customers.

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In 1988, the company changed its name from “PC’s Limited” to “Dell Computer Corporation” and began to expend globally. In 1996, Dell began its e-commerce through selling computers via its web site, and in 2002, Dell started new product lines including televisions, handhelds, digital audio players, and printers. Dell's first acquisition occurred in 1999 with the purchase of ConvergeNet Technologies. In 2003, the company’s brand was changed to "Dell Inc." in order to recognize the company's expansion beyond computers. In 2006, Dell acquired Alienware, which introduced several new items to Dell products. To prevent cross-market products, Dell continues to run Alienware as a separate entity but still a wholly-owned subsidiary. On September 21, 2009, Dell announced its intent to acquire Perot Systems (based in Plano, Texas) in a reported $3.9 billion deal. Perot Systems brought applications development, systems integration, and strategic consulting services through its operations in the U.S. and 10 other countries. In addition, it provided a variety of business process outsourcing services, including claims processing and call center operations.

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Chief Accounting Officer.General Counsel.Senior Vice President. he is responsible for overseeing Dell’s global legal. Erin Nelson. He is responsible for all aspects of Dell’s finance functions. and investor relations. and has held a variety of executive-level roles in the company’s finance organization.com/company/dellinc/dell/nas/key-executives 3 . Sweet. Nelson currently serves as Senior Vice President and Chief Marketing Officer (CMO). including accounting. Founder. and overall marketing agency management. Thomas W. besides being the chief Executive Officer. Dell’s industry and Dell’s customers. governmental affairs. tax. In this role. Knowledge of new and existing technologies. Dell is the chairman of the Board since he founded the company in 1984. core research and analytics. Gladden. audit. brand strategy.59 million. and is also responsible for our global information systems and technology structure. Senior Vice President. communications. Brian T. Dell.00. joined Dell as Senior Vice President. information technology. financial planning and analysis. treasury.CFO. Tu. Lawrence P. General Counsel and Secretary in July 2004. Dell’s success is due to his: Leadership Experience. and ethics and compliance departments.623. total compensation: $ 2. Ms.dailyfinance.DELL INC Officers and Directors1 Michael S. Joined Dell in May 1997. 1 “DELL INC Officers & Directors” http://www. Chairman and CEO of Dell Industry Experience. Mr. total compensation: $ 963. Mr. she is responsible for customer relationship management.CEO.

including telecommunications.Senior VP. He also has responsibility for corporate security and corporate responsibility on a worldwide basis. including Dell OptiPlextm Desktops. notebooks. joined Dell. Divisional. Garriques. Felice leads the Dell organization that creates and delivers specific solutions and technology to more than 72 million small and medium-sized businesses globally and is responsible for Dell’s portfolio of consumer products.Ronald G.President. software and peripherals as well as product design and sales. Operations and Technology. including desktops. he is responsible for worldwide engineering. healthcare and other public organizations make full use of information technology.president. Latitude Notebooks and Precision Workstations. he is responsible for driving the strategy and supporting initiatives to attract. development and marketing of Dell’s enterprise products. he is responsible for leading the teams that help governments. education.President. Mr. design and development of Dell’s business client products. Paul D. design. including servers. after Dell’s acquisition of Perot Systems in November 2009. Divisional. Jeffrey W.87 million. cable. Divisional. Communication Solutions. Mr. develop. Divisional. networking and storage systems. total compensation: $ 5. Divisional. Stephen J. Altabef. Divisional.57 million. Anderson. Garriques focuses on bringing to market connected computing products and services through new channels of distribution. Bell. Andrew C. and production of all company products worldwide. Divisional. ClarkeVice Chairman. satellite and others. he is responsible for worldwide engineering. and total compensation: $ 8.Senior VP. Felice. as President of Services. total compensation: $ 16. 4 . motivate. Esparza. and retain world-class talent in support of our business goals and objectives. Peter A. Dell’s global IT services and business solutions unit Bradley R.05 million.President.

While Dell's Home Office/Consumer class of products emphasize the value. PowerConnect (network switches).       Latitude (business-focused notebooks).wikipedia. Studio (mainstream desktop and laptop computers). Vostro (office/small business desktop and notebook systems). Studio XPS (high-end design-focus of XPS systems and extreme multimedia capability).President. Dell/EMC (storage area networks). XPS (high-end desktop and notebook computers). Such brands include:    OptiPlex (office desktop computer systems). Precision (workstation systems and high-performance notebooks). and expandability. “Dell” http://en.Steve Schuckenbrock. and serviceability. PowerEdge (business servers). Divisional. N-Series (desktop and notebook computers shipped with Linux or FreeDOS installed). performance. he is leading the delivery of innovative and globally consistent Dell solutions and services to the world’s largest corporate IT users. Products1 Dell’s Business/Corporate class of products represent brand where the company advertises emphasizes long life-cycles. reliability.org/wiki/Dell 5 .   1 Alienware (high-performance gaming systems). Adamo (high-end luxury laptop). These brands include:     Inspiron (budget desktop and notebook computers). PowerVault (direct-attach and network-attached storage).

The company’s manufacturing strategy is to minimize the delay between the purchase and delivery of the product to the costumers that dell is manufacturing near to its costumers. and the corporate structure and management of Dell extends beyond the board 6 .Manufacturing: Since dell started operating it was considered as a pioneer in the technology industry. It also introduce the expression of "The Re-Generation" referring to the desire of the population of all ages to make a difference through developing the global environment. which will reduce the inventory costs that is a signature of Dell. software installation. this board of directors is being elected by the shareholders. Dell’s goal is to be the greenest technology company on the globe. functional testing and quality control. Dell was awarded the "Recycling Works" award for their producer responsibility. especially in the personal computers.000 tons of IT equipments that will be recycled. while Dell is planning to be the leader in setting standards for the technology industry. Organization: The board of directors is consists of eleven members who are responsible to run the company. Dell's manufacturing process is in-house that it covers assembly. Technical support: Dell's Consumer division offers 24x7 phones based and online troubleshooting rather than only during business hours in certain markets such as the United States and Canada. where it reported the recovery of more then 40. Dell now also offers separate support options for IT staff and for non-IT professionals. Green initiatives: Dell could be considered as the first company in the technology industry to establish a product-recycling goal and introduced its global consumer recyclingprogram in 2006.

Lewent _ Director William H. Alex J. Kleisterlee _ Director Shantanu Narayen _ Director Klaus S. Jr _ Director. 2009. Jr _ Director. III _ Director Senator Professor Samuel A. Gary. Mandl _ Director Mr. Gerard J.of directors. Mr. Donald J. the Chairman of the Board of Perot Systems Corporation from September 2004 until its acquisition by Dell on November 3.com/company/dellinc/dell/nas/key-executives 7 . The Dell Global Executive Management Committee sets strategic directions. former Vice Chairman and Chief Financial Officer of Dell. Luce. Members in the board of directors:1 Thomas W. Luft _ Director James W. Perot. III _ Director Mr. 1 “DELL INC Officers & Directors” http://www. Carty _ Director. Breyer _ Director Judy C. Nunn.dailyfinance. Ross H.

and finally routing & switching equipments. magazines.Marketing: Dell advertisements have appeared in several types of media including television. Competing in different industries imposes many risks on Dell Inc. this was possible. 1 DELL INC Top Competitors http://www. encourage more sales and to stave off competitors.com/company/dell-inc/dell/nas/topcompetitors 2 Dell Inc. Lenovo. Dell and its subsidiary. VoodooPC (a subsidiary of HP). Acer. Asus. Samsung. servers & mainframes. 2 The industries Where Dell Inc. Some of Dell Inc's marketing strategies include lowering prices at all times of the year. Toshiba. catalogs and newspapers.yahoo. (DELL) competitors http://finance. Sony. workstations &thin clients. and offering free shipping in order to attract consumers. is competing include the personal computers. What set the company apart was not just its consumer-oriented focus but also its allowance for people to customize their computers during the ordering process. Hewlett Packard (HP). the Internet. computer hardware. Gateway. Falcon Northwest. Because each computer was individually assembled. computer networking equipment. where according to its goal Dell should be the leader in each industry and it has to keep competing different competitors in different industries. IBM. compete in the enthusiast market against AVADirect.com/q/co?s=dell 8 . offering free bonus products (such as Dell printers). Competition:1 Dell's major competitors include Apple. Alienware. and Sun Microsystems.dailyfinance.

902.0 49.0 61.0 -103.0 6.113.0 6.0 617. TOTAL OPERATING INCOME Interest Expense Interest and Investment Income NET INTEREST EXPENSE Currency Exchange Gains (Loss) Other Non-Operating Income (Expenses) EBT.0 49. EXCLUDING UNUSUAL ITEMS Merger & Restructuring Charges 1 As of: Feb 01 2008 61.404.629.0 8.730.103.0 -48.9B.0 3.056.0 451.0 7.101.0 Jan 30 2009 61.0 52.615.msn.0 -93.aspx? Symbol=DELL&lstStatement=Income&stmtView=Ann 9 .966.462.498.902.0 180.133. Dell Inc.0 57.998.988.0 87.1B to $52. has seen revenues fall from $61.0 61.4B.618.0 -92.618.S. Dollars Revenues TOTAL REVENUES Cost of Goods Sold GROSS PROFIT Selling General & Admin Expenses.0 -596.768.0 115. Total R&D Expenses OTHER OPERATING EXPENSES.0 -45.5B to $1. Currency in Millions of U.0 610.0 -59.101.0 Jan 29 2010 52.671.DELL INC: Income Statement1 Year over year.133.0 Dell Inc: Financial Statement http://moneycentral.0 2.0 6.com/investor/invsub/results/statemnt.474.0 3.0 11.0 43.0 -30.0 -58.0 11.0 3. This along with an increase in the cost of goods sold expense has led to a reduction in the bottom line from $2.0 12.0 9.0 -160.0 496.0 -282.0 7.0 2.0 663.0 3.446.

0 1.Gain (Loss) on Sale of Investments Gain (Loss) on Sale of Assets Other Unusual Items.0 880. Total In Process R&D Expenses EBT.433.0 2.0 --83.0 2.0 591.0 2.0 -2.947.0 2.0 846.0 10 .0 -83. INCLUDING UNUSUAL ITEMS Income Tax Expense Earnings from Continuing Operations NET INCOME NET INCOME TO COMMON INCLUDING EXTRA ITEMS NET INCOME TO COMMON EXCLUDING EXTRA ITEMS 14.947.0 2.433.0 2.0 1.478.0 ---2.0 2.947.433.0 3.324.0 2.024.827.433.0 --2.478.947.478.0 -10.0 1.0 3.478.0 2.0 1.

543. Currency in Millions of U.97%.0 6.0 596. with 51.0 2.0 7.245. over the last fiscal year to 41.051.aspx? Symbol=DELL&lstStatement=Balance&stmtView=Ann 11 .56 days worth of sales outstanding.0 444.0 8.0 7.0 373. it is still in-line with the Computers and Peripherals industry's norm.0 2. At the most recent fiscal year end there were 8.0 539.0 1.0 11.0 740.0 294. Accounts Receivable are typical for the industry.0 1.0 447.151.S.0 1.880.0 370.0 499.352.092.693.0 208.590.513.04 days of this company's Cost of Goods Sold tied up in Inventories.775.0 Jan 29 2010 10.0 Dell Inc: Financial Statement http://moneycentral. Additionally.693.0 9.0 19. Dell Inc. there are enough liquid assets to satisfy current obligations.com/investor/invsub/results/statemnt.008.443.972.0 8.0 213.0 6. Last.msn.DELL INC: balance sheet1 Although debt as a percent of total capital increased at Dell Inc.0 24.0 Jan 30 2009 8.764.180.635.543.0 20. Dollars Assets Cash and Equivalents Short-Term Investments TOTAL CASH AND SHORT TERM INVESTMENTS Accounts Receivable TOTAL RECEIVABLES Inventory Prepaid Expenses Deferred Tax Assets. Current Restricted Cash Other Current Assets TOTAL CURRENT ASSETS 1 As of: Feb 01 2008 7. is among the least efficient in its industry at managing inventories and has been consistently getting worse.0 867.0 7.443.0 147.

0 1.0 107.0 724.0 4.486.Gross Property Plant and Equipment Accumulated Depreciation NET PROPERTY PLANT AND EQUIPMENT Goodwill Long-Term Investments Accounts Receivable.0 18.652.526.0 407. Long Term Other Intangibles Other Long-Term Assets TOTAL ASSETS LIABILITIES & STOCKHOLDERS EQUITY Accounts Payable Accrued Expenses Short-Term Borrowings Current Portion of Long-Term Debt/Capital Lease Current Income Taxes Payable Other Current Liabilities.0 332.500.0 568.0 3.652.0 3.309.694.009.0 1.471.0 133. Long Term Deferred Tax Assets.373.0 780.614.0 27.668.0 11.233.0 237.029.510.0 3.960.701.0 -2.560.0 2.074.0 485.0 721.0 1.821.0 4.0 1.0 33.492.737.946.0 11.277.0 --605.417.0 18.0 -2.0 362.898.0 1.774.0 2.561.0 113.859.0 26.0 8.0 2.0 4.0 1.403.0 2.0 89. Non-Current 4.0 2.0 782.0 500.040.0 2.0 3.181.0 663.0 -6.000.0 99.648.0 3.0 200.0 -1.0 3.0 2.0 12 . Total Unearned Revenue.279.0 14. Current TOTAL CURRENT LIABILITIES Long-Term Debt Unearned Revenue.0 454.0 25.

0 22.472.0 11.0 11.0 26.0 2.652.0 13 .0 27.0 22.0 -25.904.0 4.0 5.0 -16.605.677.0 309.589.189.0 2.110.641.0 23.0 18.037.735.500.0 -27.199.826.271.0 -37.229.0 20.011.904.Other Non-Current Liabilities TOTAL LIABILITIES Common Stock Retained Earnings Treasury Stock Comprehensive Income and Other TOTAL STOCKHOLDERS EQUITY TOTAL LIABILITIES AND EQUITY 2.0 -27.0 33.561.472.0 3.164.0 10.0 28.

0 155.0 666.0 -183.0 852.086.0 16.0 -498.DELL INC: cash flow1 Currency in Millions of U.613.217.0 647.0 103.0 205.0 3. Dollars NET INCOME Depreciation & Amortization As of: Feb 01 2008 2.0 -440.0 -367.0 837.0 769.0 135.032.478.117. Plant.0 749.0 663.0 2.0 187.0 83.0 -1.0 -429.0 Jan 30 2009 2.0 -3.0 -176.947.aspx? Symbol=DELL&lstStatement=CashFlow&stmtView=Ann 14 .0 -421.0 1.894.0 -831.906.0 2.0 -1.0 44.0 596.354. TOTAL Asset Writedown & Restructuring Costs Provision & Write-off of Bad Debts Change in Accounts Receivable Change in Inventories Change in Accounts Payable Change in Unearned Revenues Change in Other Working Capital CASH FROM OPERATIONS Capital Expenditure Sale of Property.0 --2.949.0 -241.0 310.0 309.833.0 1.0 11.msn.0 3.0 Dell Inc: Financial Statement http://moneycentral.433.S.0 1.0 -3.285.0 Jan 29 2010 1. and Equipment Cash Acquisitions Investments in Marketable & Equity Securities 1 607.0 480.0 -660.com/investor/invsub/results/statemnt.0 Amortization of Goodwill and Intangible Assets DEPRECIATION & AMORTIZATION.

0 -1.0 -165.782.406.134.0 2.0 1.0 -66.0 --237.0 -265.0 -53.012.0 174.0 2.0 2.283.0 --122.0 15 .0 588.0 -100.0 --2.0 100.0 1.763.519.619.0 152.0 79.0 -122.0 -4.058.004.0 -77.0 66.0 136.0 76.0 -237.0 2.0 --1.0 -4.CASH FROM INVESTING Short-Term Debt Issued Long-Term Debt Issued TOTAL DEBT ISSUED Short Term Debt Repaid Long Term Debt Repaid TOTAL DEBT REPAID Issuance of Common Stock Repurchase of Common Stock Other Financing Activities CASH FROM FINANCING Foreign Exchange Rate Adjustments NET CHANGE IN CASH -1.120.0 177.867.0 -2.809.0 2.0 -3.

245 .960 1.960 1.960 $ 5.01 times 2009 (20.0 / 18.880 .36 times 2010 24. Generally.526 $ 1. a high current and quick ratios involves less risk of the firm experiencing a cash shortfall in the near future.354 2009 20.526 1.151 / 14. Years Quick Ratio = (total current Assets .14.1.859 1.285 Calculation s Results The liquidity of a company is a mean of determining its ability to pay off its short-terms debts obligations.3 times 2010 (24.867) / 14.180 ) / 18.): A.Inventories) / total current 2008 (19.FINANCIAL RATIOS: (DELL Inc. the higher the value of the ratio. current Ratio= total current Assets / total current liabilities Years Calculation s Results 2008 19.292 2010 24.28 times 2.859 1.8801.880 / 18.526 1. Dell Inc.245 .2 times liabilities Calculation s Results 3. then it decreased with a little fraction from 2009 to 2010.18.07 times 2009 20. the larger the margin of safety that the company possesses to cover short-term debts. 16 .859 $ 5. Years Net working capital = total current assets – total current liabilities 2008 19.151 .245.051) / 18. Liquidity Ratios: 1. increased its liquidity ratio from 2008 to 2009.18.151 . this fraction doesn’t affect its ability to pay off its short-terms debts obligation.

the ratios of inventory and assets turnover show an increase from year 2008 to 2009 then a decrease in year 2010. 17 .492 / 1.6 times The activity ratios aim is to measure a firm's ability to convert different accounts within their balance sheets into cash or sales.652 1.133 / 27.443 / 61. And in terms of dell’s Inventory and Assets.896 days 3.450 days 2010 (11. Average collection period = (Accounts receivable / sales) * 360 Years Calculation s Results 2008 (7.693 / 61.373 / 1.B.309 / 867)* 360 3.500 2. Assets turnover = Sales / total Assets Years Calculation s Results 2008 61.180)* 360 3.506 days 2009 (8.3 times 2010 52.051 41.561 2. dell’s average collection period in 2010 increased where the best situation when it is decreased.101 )* 360 38 days 2010 (8.101 / 26.998 / 867 57.462 / 1.133 )* 360 45 days 2009 (6.902 )* 360 58 days 2.543 / 52.902 / 33.404 / 1.3 times 4.051)* 360 3. Average payment period = (Accounts payable / purchases) * 360 Years Calculation s Results 2008 (11.22 times 2009 61.180 42 times 2009 49. Inventory turnover = Cost Of Goods Sold / Inventory Years Calculations Results 2008 49. While the average payment period increased in 2010 that dell is able to delay its obligation in order to benefits of its cash in hand. Activity Ratio: 1.7 times 2010 43.

Debt to equity ratio = total debt / total stockholder’s equity Years Calculations Results 2008 562 / 3. 18 .04 % 2009 1.735 15. Dell Inc. financing through debt has been increasing since 2008 until it reached 60% of its equity financed through debt. Leverage Ratios 1.6% The leverage ratios are to measure the company’s ability to meet its financial obligations or in other words it is the company's methods of financing.652 10.641 60.898 / 26.898 / 4. Debt to total assets = total debts / total assets Years Calculation s Results 2008 562 / 27.15 % 2.561 2.where both ratios should increase that they are measuring the company’s efficiency to generate sales through making use of its assets and inventory. which has a critical outcomes on the risk and return of its shares. through indicating the extent to which the company relies on debt as a source of financing.417 / 33.500 7.417 / 5.05 % 2009 1.16 % 2010 3.271 44.4 % 2010 3. C.

768 / 52.133 19. Operating profit margin = operating profit / sale Years Calculation s Results 2008 3.615 / 61. having a higher value compared to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well. For most of these ratios.947 / 61.474 / 61. Profitability Ratios: The profitability ratios assess a company’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time.101 4.17 % 2010 9.91 % 2009 3.902 2.902 17.101 5.95 % Dell’s Gross profit margin ratio shows a decrease in its ability to sell its products with a price more than the cost of producing this product 2.478 / 61.498 / 52.06 % 2010 1.133 5.433 / 52.7 % 2010 2.09 % 2009 11.2 % The operating profit margin ratio reveals a decrease on how much dell Inc.D.7 % 19 . Net profit margin = net profit after tax / sale Years Calculations Results 2008 2.101 18.8 % 2009 2. 3. 1.103 / 61.671 / 61.902 5. Gross profit margin = Gross profit / sale Years Calculation s Results 2008 11. earns before interest and taxes from each dollar of sales.133 4.

478 / 26. In 2010.229 11.15 % 2010 1.011 5.433 / 28. Return on equity (ROE) = net profit after tax / total equity Years Calculation s Results 2008 2.561 10.478 / 22.947 / 23.The net profit margin ratio shows the fraction of each dollar in revenue that is available for equity holders after Dell Inc.500 9. also in 2010 the ROE decreased with a remarkable fraction. this is might be due to decrease amount of money invested by shareholders.1 % The return on equity ratio expresses the firm’s net income as a return on the book value of its equity.826 12. the net profit margin indicates a major decrease almost the half of revenues available for the shareholders. pays its expenses plus interest and tax.7 % 2009 2. 5. 4.947 / 27.2 % The return on assets ratio expresses the firm’s net income as a return on the book value of its assets.652 4.4 % 2009 2. in 2010 the ROA decreased with a remarkable fraction might be due to management’s inefficient use of its assets to generate earnings. Return on assets (ROA) = net profit after tax / total assets Years Calculation s Results 2008 2.433 / 33. 20 .3 % 2010 1.

in 2009 there was a huge decrease in the market capitalization. then it increase by a fair amount in 2010. 1 Dell Inc: Financial Statement http://moneycentral.com/investor/invsub/results/statemnt.060 * 19.517.468 / 2478 7. Valuation Ratios: The Valuation ratios estimate the attractiveness of a potential or existing investment and get an idea of its valuation.5 The price earnings ratio measures the value of equity to the firm’s earnings.msn.50 18.45 2010 26517.E. Market Capitalization = Number of shares outstanding1 * Market price per share Years Calculation s Results 2008 2. Price Earnings Ratio ( P/E) = Market capitalization / Net Income Years Calculation s Results 2008 40994 / 2947 13. after analyzing the P/E ratio.957 * 13. the reason behind those changes might be due to the change in the share prices over the three years.9 2009 18.468 2010 1.3 The market capitalization ratio calculate the total market value of a firm’s equity.90 40. 1.55 26. a decrease and increase could be noticed due to the changes in the market capitalization. 2.994 2009 1.944 * 9.35 / 1433 18.aspx? Symbol=DELL&lstStatement=Balance&stmtView=Ann 21 .

unencumbered by debt and separate from any cash and marketable securities.7 The net income represents the total earnings of the firm’s equity holders. it indicates the value of the firm’s assets when put to use where it must exceeds the historical costs of those assets.7764 33. Market-to-Book Ratios= market value of equity / book value of equity Years Calculations Results 2008 40.4 2009 2.4.994 / 3735 11 2009 18. where the enterprise value of dell decreased from year 2008 to year 2009. Then in 2010 the market-to-book ratio increased by 0.3 2010 26.35 + 3417 10635 19.35 / 5641 4. where the earning per share (EPS) provides a general idea about the net income 22 .468 / 4271 4.7 This ratio is used to evaluate the firm.299. EPS = Net Income / Shares Outstanding Years Calculation s Results 2008 2.468 + 1898 8352 12.014 2010 26517.782 2009 18.433 / 1.3.060 1.517. Evaluating Dell’s book value to its market value we could observe the decline from year 2008 to 2009 with a large amount.478 / 1.cash Years Calculation s Results 2008 40994 + 562 .3 2010 1. This ratio provides a feedback on the market’s assessment of the management’s decisions.947 / 2. then a slight increase in 2010. this might be caused by the decrease of the amount of shareholders’ capital invested.944 1.957 0.35 The enterprise value to EBITDA assess the value of the underlying Dell’s assets. Enterprise Value to EBITDA =market value of equity + Debt . 4. 5.

while in 2010 it continued to decrease but with a huge fraction. 23 .available for shareholders. Dell EPS for 2009 decreased compared to 2008.

18 20.70 15.88 16.90 15.643. 2009 Jan 4. 2010 Dec 1.98 12. 2008 Jan 2. 2008 Dec 1.866.com/q/hp? s=DELL&a=01&b=1&c=2008&d=11&e=31&f=2010&g=m 24 .96 17.545.23 11.84 22.50 13.25 14.75 13.880. especially a noticeable drop in the prices during 2009. 2010 Mar 1.02 Low 18. 1 Dell Inc.800 26. stock prices over the past three years.91 10.29 11.81 15.13 14.91 21.953.43 10.81 24.20 Close 19.100 26.200 32.74 9.200 25.97 13.79 13.400 29. and then it increased in 2010 but didn’t reach the prices of 2008.00 11. http://finance.26 14.601.315.53 11. 2008 Jun 2. we could conclude that there were ups and downs in the stock prices.66 21.12 19.400 30.45 8.99 21.084.yahoo.700 43.100 31.06 12.50 9.74 12.35 13.200 After observing Dell’s Inc.400 27.48 13.45 15.86 13.745.48 10.400 25.00 11.400 19. 2009 Dec 1.72 14.55 Average Volume 34.28 13. 2009 Jun 1.20 15.73 15.800 26.50 9.87 14.13 14.100 26. (DELL) Historical Prices.521.92 13.593. 2008 Mar 3. 2008 Sep 2.24 9. 2010 Sep 1.829.Historical prices: 1 Prices Date Jan 31.31 8.47 High 21. 2009 Sep 1.594.94 10. 2010 Open 20.92 21. 2009 Mar 2.17 14.87 18.500 18.28 12. 2010 Jun 1.02 12.05 12.90 19.861.36 12.606.

20 21.07 3. (DELL) 57.Technology .28 34.3B 0.31 88. (AAPL) Dell Inc.00 NA Long-Term Description Debt to Equity Sector: Technology Industry: Personal Computers Apple Inc.8B P/E ROE % 50.40 21.50 35.97 22.23 88.29 26. Yield % 10.34 Price to Free Cash Flow (mrq) -280.30 298.49 77871.00 0.07 6.81 11.18 5.Personal Computers . http://biz.00 0. (AAPL) Dell Inc.html 25 .30 325.06 Price to Book Value 8.72 16.Industry average: 1 Description 1 Day Price Change % Sector: Technology Industry: Personal Computers Apple Inc.35 Companies NA 6.1B Companies 0.35 Div.87 25.42 Net Profit Margin % (mrq) 5.24 205.yahoo.50 1.90 80.93 1 Industry Browser .4B 0.Company List. (DELL) Market Cap 0.com/p/811conameu.46 13.

 26 .Conclusion  Comparison between both companies according to their ratios and Analyze the performance of both company The market-to-book ratio indicates which is “growth firm”( low Enterprise Value to EBITDA: Determine how the value of each interpret the difference.   market-to-book ratio) and which is “value firm”(high market-to-book ratio)  company changed over time period.

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