Financial Accounting: Dell Corporation's case - Essay Example

Comments (1) Cite this document
This paper will compare ten ratios of Dell against the performance of one of its main competitors, Hewlett Packard. A table illustrating a ratio analysis of Dell and Hewlett Packard is illustrated in the following paper…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.9% of users find it useful
Financial Accounting: Dell Corporations case
Read TextPreview

Extract of sample "Financial Accounting: Dell Corporation's case"

Download file to see previous pages The firm’s total liability increased a bit in comparison with the previous year. The total equity of the firm in 2011 was $7.76 billion. The net margin of Dell in 2011 was 4.28%. This metrics measures the profitability of the company (Besley & Brigham, 2000). One of its competitors Hewlett Packard had a net margin of 6.95%. The profitability performance of Dell is inferior to Hewlett Packard. The industry net margin average is 5.30% (Dun & Bradstret, 2011). The net margin of Dell was 1.02% below the industry average. The return on assets of Dell is fiscal year 2011 was 6.83%. Return on assets measures how well assets have been employed by the company (Garrison & Noreen, 2003). A high return on assets number is a desirable outcome. The return of assets of Hewlett Packard was 7.04%. The return on assets of HP is 0.21% higher than Dell. The industry average return on assets is 5.8%. Dell’s return on asset performance is 1.03% better than the industry average. The return on equity of Dell is fiscal year 2011 was 33.93%. During the equivalent financial period Hewlett Packard has a return equity of 6.95%. The return on equity metric measures the extent to which financial leverage is working for or against common stockholder (Garrison, et. al., 2003). The average return on equity in the computer industry is 8.10%. The return on equity of Dell Corporation was 4.18 times higher than the industry average. The current ratio of Dell in fiscal year 2011 was 1.49. The current ratio measures the ability of a company to pay off its short term debt (Investopedia, 2011). The general rule to evaluate a current ratio is for the current ratio to be above 1.0. Since Dell has a current ratio 0.49...
The researcher tells that the computer industry was born in the late 1970’s. This innovation changed the world forever as it allowed human to process and store information faster. A company that has had a lot of success in this industry is Dell Corporation. Dell was founded 26 years ago by Michael Dell. Through the 1990’s Dell became the market leader in the computer industry due to its innovative supply chain model which eliminated the intermediary and sold directly to the customer. Today the computer industry has become more competitive than ever. Ratio analysis is a tremendous tool to evaluate the financial performance of a company. The five categories of ratio analysis are liquidity, financial leverage, asset efficiency, profitability, and market value ratios. In order to determine how good a financial ratio is the ratios must be compared against a benchmark company or against the industry standard ratio. A database that provides information regarding the business ratios of specific industries is the Dun & Bradstreet database. Dell Corporation had a solid financial performance in fiscal year 2011. Its revenues and net income increased by 16.24% and 83.91% respectively. The ratio analysis performed had more positive than negatives metrics. HP was chosen as the benchmark company for comparison reasons. The net margin of the company was lower than both HP and the industry at 4.28%. Dell’s performance is both ROA and ROE were good. The ROE of the firm is outstanding at 33.93%. Dell’s ROE is 4.18 better than the industry average. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Financial Accounting: Dell Corporation's case Essay”, n.d.)
Retrieved from
(Financial Accounting: Dell Corporation'S Case Essay)
“Financial Accounting: Dell Corporation'S Case Essay”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
auerwayne added comment 6 months ago
Student rated this paper as
Great work done on the %topic%. I think it is the best document I have seen so far.

CHECK THESE SAMPLES OF Financial Accounting: Dell Corporation's case

Dell Corporation

...the computer purchases. These purchases are mostly made by large commercial and institutional customers. Therefore the company has a skill in retaining large corporate accounts which will enable the company to face the competitive rivalry from HP. Dell also has core competencies in transferring knowledge across divisions in order to facilitate the highest level of quality in all the product categories. The company has shown great success in product diversification. These capabilities and resources form the core competencies of Dell Inc. The company’s strength is in the market leadership position that it holds in the industry with a loyal customer base of large commercial...
3 Pages(750 words)Essay

Dell Computer Corporation

...? Dell Computer Corporation EXECUTIVE SUMMARY Dell Computer company was established in 1984 by Michael Dell. Since then it has grown from a small company to the largest computer manufacturing and Supplies Company. Its financial endowment has grown tremendously from 1984 to employ over one hundred people worldwide. It assembles and designs a wide range of computer products. The SWOT analysis shows details of the company’s successes and failures in the computing industries. Introduction Dell, Inc. Company is a holding company that does its business activities in the whole world through its contributory networks. It is responsible for...
7 Pages(1750 words)Assignment

S Corporation vs. Corporation

...that has been paid by corporations in terms of corporate tax has been dropping and it is quoted as being 31.9% by the financial times (Demos, 2012). The move towards making Lost and found Corp. an S corporation has been informed by the need to limit shareholders tax burden. In making this corporation into a designation S one, means that the shareholders still enjoy the benefits of a corporation without the need for double taxation. Shareholders who have lower tax rates can utilize this new designation to cut the tax that they pay the federal government. This is because in being an S...
3 Pages(750 words)Essay

Case Study:Business Operations in Dell Corporation

...? Business Operations in Dell Corporation Introduction Business process integration is an important strategy which has been considered by many scholars. The idea of process and data integration came first in the early 1960s after the emergence of computing technologies immediately after the first digital capacitor-based computer was developed. Integration was a new idea in town and only a few professionals understood its importance and its implications to the business. However, over fifty years later today, the idea of business process integration is one that has remained elusive for many professionals and many businesses. There are yet many businesses which can be said to have managed to fully integrate...
5 Pages(1250 words)Research Paper

Business Operations at Dell Corporation

..., A. (2013). Analysis of Dell's Business Strategy. Munich: GRIN Verlag. Kim, D., Cavusgil, S. T. & Calantone, R, J. (2006). Information System Innovations and Supply Chain Management: Channel Relationships and Firm Performance. Academy of Marketing Science Journal, 34 (1), 40-54. Lapide, L. (2006). Demand Management Revisited. The Journal of Business Forecasting, 25 (3), 17-19. Marsdd. (2012). Case study: Dell—Distribution and supply chain innovation. Retrieved from Mentzer et al. (2001). Defining Supply Chain Management. Journal of Business Logistics, 22 (2), 1-25. Mentzer,...
11 Pages(2750 words)Research Paper

Dell Computer Corporation

...a technical support service for the customers. But by the mid of the year 1996, Dell introduced a new application of order status system. This helped the customers in tracking their orders. By the end of 1996, Dell introduced the configurator system. This helped the customers in deciding the suitable configuration for their computers and checking the cost before placing an order. This was the starting of e-commerce. Services like premier-page were especially dedicated to the corporate customers. This custom website managed the individual corporateaccount including ...
11 Pages(2750 words)Case Study

Dell Corporation

...documents containing strategic, tactical, and operational objectives together. Works Cited 1. Cole, G. A. 1998, Strategic Management. Thomson Learning. 2. Dell Corporation Home Page. 2008. 3. Dobson, P., Starkey, K. 2004, The Strategic Management: Issues and Cases. Blackwell Publishing. 4. Drejer, A. 2002, Strategic Management and Core Competencies: Theory and Application. Quorum Books. 5. Gardiner, P. 2005, Project Management: A Strategic Planning Approach. Palgrave Macmillan. 6. Grant, R. M. 1998, Contemporary Strategy Analysis, (3rd edn.). Oxford: Blackwell. 7. Mintzberg, H., Lampel, J. B., Quinn, J. B., Ghoshal, S. 2004, The Strategy Process....
13 Pages(3250 words)Case Study

Financial Analysis of Dell

...accounting issues that may have prompted the investigation. Table of Contents Financial Analysis of Dell, Inc. i Abstract ii Table of Contents iii Part I: Introduction to the Company 1 Part II: Accounting Issues 3 Part III: Financial Analysis 10 Tables 15 Part I: Introduction to the Company Dell, Inc. is a leading supplier of information technology equipment and peripherals such as printers, music players, mobile phones, laptop and desktop computers and software, and servers and storage systems. Founded in 1984 by Michael Dell, currently the Chairman of the Board, it generated total sales of $55.9 billion and profits...
12 Pages(3000 words)Essay

S- corporation

...Accounting and Finance Accounting and Finance Built-In Gains Tax for S-Corporations Inventory Fair Market Value $210,000 Less Adjusted Basis $180,000 Built-In Gains realized $30,000 Land Fair Market Value $120,000 Less Adjusted Basis $125,000 Built-In Loss ($5,000) Net Built-In Gain $25,000 Tax rate 35% Built-In Gains Tax $8,750 Taxable income for 2013 $65,000 Tax Rate 35% Tax liability $22,750 Lockhart’s Built-in Gains tax for the year2013 was $8,750. That is because Built-in Gains tax is paid based on the lesser of the corporations net recognized Built-In Gains or the corporations taxable income. In this...
1 Pages(250 words)Essay

Accounting case s

...profits from the bakery department in order to account for losses made in other sectors of the department. According to reliable operating statements, it is prudent for all the sectors in a department to have their statement in order to help analyze the effectiveness and the progress of the sector Recommendation As clearly observed from the baker’s complaint, it is clear that there may be cases of fraud and mismanagement of funds going pun from the management of the department. It is, therefore, recommendable that the baker must be involved in decisions to do with the choice of labor. Despite the fact that his sector records high profits, more experienced labor s required in order to...
2 Pages(500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Financial Accounting: Dell Corporation's case for FREE!

Contact Us