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

monetary Ratios for dingle Inc.Team D selected Dell Inc. as our companion for the team project. Why was Dell chosen? Dell Inc. with annual revenue of $41.4 billion, is a premier provider of computing products and services. Because of its direct business model, Dell was the leading seller of computer systems planetary and the number one seller in our customer segments in the United States during calendar year 2003.Michael Dell founded the company in 1984 on a simple concept of selling computer systems directly to customers. Using this technique, Dell could best understand customer needs and expeditiously provide the most effective computing solutions to meet those needs. Dells climb to market leadership is the result of a relentless focus on delivering the best customer experience by selling computer system and services directly to customers.Dell, a Delaware corporation, is based in Round Rock, Texas and conducts operations worldwide through wholly owned subsidiaries. The companys business strategy combines its direct customer model with a highly efficient manufacturing and supply drawstring management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value high quality, relevant technology customized systems superior service and relief 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, right? The issue isnot necessarily However, there are tools available that will help determine if our selected company is financially sound. Ratio analyses are those tools used to evaluate the performance of a business and identify potential problems.Financial RatiosFinancial ratio analysis batch teach so much about Dells accounts and business. For example, using ratio analysis, we can conclude the profitability of Dell. We can also determine if Dell has enough money to pay its bills. Ratio analysis can check whether Dell is performing better this year than it was last year. Additionally, ratio analysis can alert us if Dell is doing better or worsened than other businesses selling the same or similar products. http//www. gameed.ac.uk/compfact/ratios/intro1.htmTable 1.1 lists the ratios we feel are important 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 March 3, 2005 http//beginersinvest.about.com/od/financial ratio/Form 10-K, (2004). Dell Inc. Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange round 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/news/biz/bizcalcs/ratioquick.aspUniversity of Phoenix (ED.) (2001). Fundamentals of Corporate Finance. University of Phoenix Custom Edition e-text. New York McGraw-Hill Custom Publishing. Retrieved on March 6, 2005 from the University of Phoenix, resource, FIN/544-Finance for Managerial Decision Making website https//mycampus.phoenix.edu/ full/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.