Financial Ratios for Dell Inc. Essay -- Finances Accounting Computer S

monetary Ratios for Dell Inc.Team D selected Dell Inc. as our fellowship for the team project. Why was Dell chosen? Dell Inc. with stratumbook revenue of $41.4 billion, is a premier provider of figuring products and services. Because of its direct seam model, Dell was the leading seller of computer systems worldwide and the number wizard seller in our client segments in the United States during calendar year 2003.Michael Dell founded the company in 1984 on a simple construct of merchandising computer systems directly to customers. Using this technique, Dell could best date customer needs and efficiently provide the most effective computing solutions to meet those needs. Dells climb to market leadership is the offspring of a relentless focus on delivering the best customer go by selling computer system and services directly to customers.Dell, a Delaware corporation, is based in Round Rock, Texas and conducts operations worldwide through entirely owned subsidiaries. The comp anys business strategy combines its direct customer model with a highly efficient manufacturing and supply chain anxiety organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with banner value high quality, relevant technology customized systems superior service and meet and product and services that are easy to buy and sell. (Form 10K, 2004)A company with an annual revenue of $41.4 billion must be financially sound, slump? The answer isnot necessarily However, there are tools available that leave behind help determine if our selected company is financially sound. Ratio analyses are those tools utilize to evaluate the performance of a business and identify potential problems.Financial RatiosFinancial ratio analysis can teach so a great deal about Dells accounts and business. For example, using ratio analysis, we can adjudicate the profitability of Dell. We can also determine if Dell has enough capital to pay its bills. Ratio analysis can check whether Dell is execute better this year than it was last year. Additionally, ratio analysis can appall us if Dell is doing better or worse than other businesses selling the same or similar products. http//www.bized.ac.uk/compfact/ratios/intro1.htmTable 1.1 lists the ratios we feel are significant for our selected company.Dell IncorporatedProfitability Ratios 01/30/2004 ... ...05 from http//www.133.americanexpress.com/osbn/tool/ratios/htmFinancial Ratios-Formulas and Examples. (2004). Retrieved on demo 3, 2005 http//beginersinvest.about.com/od/financial ratio/Form 10-K, (2004). Dell Inc. yearly Report Pursuant to Section 13 or 15(d) of the Securities Exchange defend of 1934. Retrieved on March 5, 2005 from Mergent database.Net Profit Margin Ratio. (2005). Retrieved on March 4, 2005 http//beginersinvest.about.com/od/financial ratio/Quick Ratio. (2005). Retrieved on March 5, 2005 from http//www.bankrate.com/brm/ word of honor/biz/bizca lcs/ratioquick.aspUniversity of Phoenix (ED.) (2001). Fundamentals of Corporate Finance. University of Phoenix Custom var. e-text. New York McGraw-Hill Custom Publishing. Retrieved on March 6, 2005 from the University of Phoenix, resource, FIN/544-Finance for Managerial ratiocination Making website https//mycampus.phoenix.edu/secure/resource/resource.asp.Welcome to Ratio Analysis (2004). Retrieved on March 3, 2005 from http//www.bized.ac.uk/compfact/ratios/intro1.htmWorking Capital Ratio. (2005). Retrieved on March 5, 2005 from http//www.investopedia.com/university/ratios/workingcapital.asp.