Dell's Annual Worldwide Sales Dollar Growth vs Industry

Calendar Year Dell Industry

1991 63% 2%
1992 126% 7% average growth from the last 3 39%
1993 43% 15%
1994 21% 37%
1995 52% 31%

Dell's Working Capital Financial Ratios

DSI DSO DPO CCC

Q193 40 54 46 48
Q293 44 51 55 40 DSI(Days Sales in Inventory)=
Q393 47 52 51 48 DSO(Days Sales Outstanding)=
Q493 55 54 53 56 DPO(Days Payable Outstanding)=
Q194 55 58 56 57 CCC(Cash Conversion Cycle)=
Q294 41 53 43 51
Q394 33 53 45 41
Q494 33 50 42 41
Q195 32 53 45 40
Q295 35 49 44 40
Q395 35 50 46 39
Q495 32 47 44 35
Q196 34 47 42 39
Q296 36 50 43 43
Q396 37 49 43 43
Q496 31 42 33 40

Dell Computer Systems Sales by Microprocesor

Comp. System FY94 FY95 FY96

386 models 7% 0% 0%
486 models 92% 71% 25%
Pentium models 1% 29% 75%
 Sales in Inventory)= Net Inventory/(Quarterly COGS/90)
s Sales Outstanding)= Net Acc. Receivables/(Quarterly Sales/90)
s Payable Outstanding)= Acc. Payables/(Quarterly COGS/90)
h Conversion Cycle)= DSI+DSO-DPO
Dell's Profit & Loss Statements (millions of $)

Fiscal Year 1997 1996 1995 1994 1993 1992

Sales #REF! 5,296 3,475 2,873 2,014 890
Cost of Sales 4,229 2,737 2,440 1,565 608
Gross Margin 1,067 738 433 449 282
Operating Expense 690 489 472 310 215
Operating Income 377 249 -39 139 67
Financing & Other Income 6 -36 0 4 7
Income Taxes 29% 111 64 -3 41 23
Net Profit 272 149 -36 102 51

Dell's Balance Sheets (millions of $)

Year Ended
Jan 28, Jan 29, Jan 30,
1996 1995 1994
Current Assets
Cash 55 43 3
Short Term Investments 591 484 334
Acc. Receivables, net 726 538 411 1,076
Inventories 429 293 220
Other 156 112 80
Total Currets Assets 1,957 1,470 1,048
Property, Plant & Equipt, net 179 117 87
Other 12 7 5
Total Assets 2,148 1,594 1,140

Current Liabilities
Acc. Payable 466 403 NA 806
Accrued & Other Liabilities 473 349 NA
Total Current Liabilities 939 752 538
Long Term Debt 113 113 100
Other Liabilities 123 77 31
Total Liabilities 1,175 942 669

Stockholders' Equity:
Preferred Stock 6 120 NA
Common Stock 430 242 NA
Retained Earnings 570 311 NA
Other -33 -21 471
Total Stockholders' Equity 973 652 471
2,148 1,594 1,140

Net Working Capital 1,018 718 510

Growth (%)
Sales 52.40 20.95 42.65
Sales Increase 1,821.00 602.00
Operating Income 51.41
Net Income 82.55
Cost of Sales 79.85 78.76

Margins (%)
Gross Margin 20.15 21.24 15.07
Operating Margin 7.12 7.17
Net Margin 5.14 4.29

Current Assets/Sales (%)

Cash 104% 124%
Short Term Investments 1116% 1393%
Acc. Receivables, net 1371% 1548%
Inventories 810% 843%
Other 295% 322%
Total Currets Assets 3695% 4230%
Property, Plant & Equipt, net 338% 337%
Other 23% 20%
Total Assets 4056% 4587%
 Fiscal Year 1997 Average 1996 1995 1994
Sales 7,344 38.7% 52.4% 21.0% 42.7%
Cost of Sales 5,962 81.2% 79.9% 78.8% 84.9%
Gross Margin 1,382
Operating Expense 1,066 14.5% 13.0% 14.1% 16.4%
Operating Income 316
Financing & Other Income 6 -0.3% 0.1% -1.0% 0.0%
Income Taxes 111 30.0% 29.0% 30.0% 7.7%
Net Profit 211

Fiscal Year 1997 Average 1996 1995 1994

Sales 7,344 38.7% 52.4% 21.0% 42.7%

1997 Average 1996 1995 1994

Current Assets
Cash 55 0.8% 1.0% 1.2% 0.1%
Short Term Investments 663 12.2% 11.2% 13.9% 11.6%
Acc. Receivables, net 831 14.5% 13.7% 15.5% 14.3%
Inventories 464 8.1% 8.1% 8.4% 7.7%
Other 161 3.0% 2.9% 3.2% 2.8%
Total Currets Assets 2,174
Property, Plant & Equipt, net 185 3.3% 3.4% 3.4% 3.0%
Other 12 0.2% 0.2% 0.2% 0.2%
Total Assets 2,371

Current Liabilities
Acc. Payable 514 10.2% 8.8% 11.6%
Accrued & Other Liabilities 518 9.5% 8.9% 10.0%
Total Current Liabilities 1,031
Long Term Debt 116 3.0% 2.1% 3.3% 3.5%
Other Liabilities 125 1.9% 2.3% 2.2% 1.1%
Total Liabilities 1,273

Stockholders' Equity:
Preferred Stock 6 1.8% 0.1% 3.5%
Common Stock 462 7.5% 8.1% 7.0%
Retained Earnings 626 9.9% 10.8% 8.9%
Other 3
Total Stockholders' Equity 1,098

Net Working Capital 1,143 Total Current Assets - Total Current Liabilities

13.6% 20% 29% -8%

 Remarks
Growth
COGS/Sales

Operating Expense/Sales

/Sales

Growth

/Sales
/Sales
/Sales
/Sales
/Sales

/Sales
/Sales

/Sales
/Sales
/Sales
/Sales
/Sales

/Sales
/Sales
/Sales

Total Current Liabilities

Sales 39% Increase
Sales 1996 5,296.0 million
Sales 1997 7,343.9 million

Q196 Q296 Q396 Q496

Average DSI 34.50 34 36 37 31

COGS 81% of Sales

COGS 1997 5,961.9 million

Inventory 1997 571.35 million

Q196 Q296 Q396 Q496

Average DSO 47.00 47 50 49 42

Accounts Receivable 1997 958.79 million

Q196 Q296 Q396 Q496

Average DPO 40.25 42 43 43 33

Accounts Payable 666.57 million

Current Assets
Cash 55 0.8% increase
Short Term Investments 663 12.2% increase
Acc. Receivables, net 959 1997 forecast
Inventories 571 1997 forecast
Other 161 3.0% increase
Total Currets Assets 2,410

Current Liabilities
Acc. Payable 667 1997 forecast
Accrued & Other Liabilities 518 9.5% increase
Total Current Liabilities 1,184

Net Working Capital 1,225 1997 forecast

Net Working Capital 1,018 1996 actual

Net Working Capital Change 207

Inventory = DSI x (Quarterly COGS/90)
= 34.50 x 16.6
= 571.35

Accounts Receivable = DSO x Quarterly Sales/90

= 47.00 x 20.4
= 958.79

Accounts Payable = DPO x Quarterly COGS/90

= 40.25 x 16.56
= 666.57