Free

Income Balance of Dell Inc - Essay Example

Add to wishlist

Summary

The essay "Income Balance of Dell Inc" focuses on the critical analysis of the major issues in the income balance of Dell Inc. The formula for calculating ROE using the DuPont Formula is elaborated. The information is extracted from the financials of Dell Inc…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER92.6% of users find it useful

Read Text Preview

Subject: Finance & Accounting
Type: Essay
Level: Undergraduate
Pages: 1 (250 words)
Downloads: 3
Author: audrey88

Extract of sample "Income Balance of Dell Inc"

The Financial Leverage calculated from the above details for the three years has been shown below:

Calculation of Ratios

2013

2012

2011

Financial Leverage

4.451

4.994

4.970

From these calculations, the Return on Equity (ROE) using the DuPont Method will be calculated:

Calculation of Ratios

2013

2012

2011

Net Profit Margin

4.17%

5.63%

4.28%

Asset Turnover

1.198

1.394

1.593

Financial Leverage

4.451

4.994

4.970

DuPont Ratio (ROE)

22.21%

39.16%

33.93%

The DuPont analysis is very effective in assessing the performance of the company. If the company’s performance is unsatisfactory then which part of the business is underperforming can be identified using this formula.

The ROE of Dell Inc. has fallen in 2013 as compared to 2012. The decrease in the ROE has been observed due to the operating inefficiency of the company. This is assessed from the Net Profit Margin of the company. The Asset turnover of the company has improved over the years. The Decrease in the Financial Leverage ratio is a good sign for the company.

Analyzing the ROE of Dell Inc., the company must take measures to improve its Net Profit Margin. Improving the operating efficiency will increase the returns of the company.

CHECK THESE SAMPLES OF Income Balance of Dell Inc

Company Analysis

This paper ''Company Analysis'' tells us that Apple inc.... Through its global expansion strategy, innovative genius, Apple inc.... This paper focuses on analyzing the inherent investment opportunities and risks at Apple inc.... Apple inc.... Apple inc.... This paper focuses on an analysis of the investment risks and opportunities of Apple inc.... is in a highly competitive market that includes dell and HP....

14 Pages (3500 words) Research Paper

Apple, Inc. Business Analysis

It was observed after studying the financial statements of dell that the revenue of the company increased by a significant 16 percent.... With this concern, the balance sheet, income statement and the cash flow statements of Apple inc.... The total equity was observed to depict an increase compared to the previous year (Apple inc, 2011).... The two companies with which Apple would be compared are dell and IBM.... The financial position of the company Apple is compared with two other companies in this paper so as to ascertain its financial health based on the income statement, cash flow and balance sheet....

5 Pages (1250 words) Essay

Balanced Scorecard as a Performance Management Tool

This study "Balanced Scorecard as a Performance Management Tool" discusses the key performance indicators of Thornton Chocolate Company.... The performance of the company has been assessed under five different segments and the illustrations are based on the annual reports of 2012 and 2011.... .... ...

8 Pages (2000 words) Essay

Business Excellence Following The Example of Dell Inc

The major factors that led to the declining market share of dell from all segments can be identified as the company's emphasis on its traditional business model lacking.... Notably, the major factors that led to the declining market share of dell from all segments can be identified as the company's emphasis on its traditional business model lacking in terms of innovation and transformation.... By adopting the customer-centric strategies, dell was determined to become the low-cost leader while providing high-value products and services....

22 Pages (5500 words) Essay

Practical Implications of the Balanced Scorecard on Apple Incorporation

This essay "Practical Implications of the Balanced Scorecard on Apple Incorporation" seeks to explore the implementation as well as the practical implications of the balanced scorecard on Apple inc.... This present report is based on the concept of a balanced scorecard and the report seeks to critically analyze this concept in relation to its practical application and implication at Apple inc.... he report will use the Apple inc as to the case study and it is of essence to note that Apple inc is largely an information and technology company that mainly specializes in designing, manufacturing, and selling computer hardware and software, and consumer electronics such as personal computers, phones, and television pads, among others....

6 Pages (1500 words) Essay

The Optimum Level of Cash Balances

The main contention of David Einhorn, who is the manager of Greenlight Hedge Fund who successfully obtained an injection from the court against Apple inc to declare dividends from its cash reserves thereby compelling to declare the dividend from Apple's cash reserves.... For example, GO Plc had excessive cash reserves in its balance sheet with zero debt balance....

8 Pages (2000 words) Assignment

Accounting Transactions of Tax Solutions Inc

The "Accounting Transactions of Tax Solutions inc" paper contains accounting transactions that Tax Solutions inc.... Tax Solutions inc.... Tax Solutions inc.... Tax Solutions inc.... Among the tax incentives that Tax Solutions inc.... n addition, Tax Solutions inc.... 31/12/20X4 - 7 employees are working at Tax Solutions inc.... It indicates the effects of an entity's investing, financing, and operating activities on its cash balance....

11 Pages (2750 words) Assignment

Work-Life Balance as a Strategy to Attract and Retain Employees

The paper 'Work-Life balance as a Strategy to Attract and Retain Employees' is a motivating example of human resources literature review.... The paper 'Work-Life balance as a Strategy to Attract and Retain Employees' is a motivating example of human resources literature review.... Ideally, work-life balance means a proper fifty-fifty division of time between work and leisure/ family activities.... In actual practice, such a perfect balance does not exist as professionals juggle in most cases unsuccessfully between their personal and professional lives....

7 Pages (1750 words) Literature review