FINANCIAL ANALYSIS

Financial Analysis on Dell Inc

Executive Summary

Dell Inc. operates in the technology sector and offers a wide variety of products and services. It produces personal computers, laptops and other technology related products and services. The company organizes its global businesses in four business segments: consumer, SMB, public and large enterprise. Moreover, the company holds niche market in the segment of mass customization. Dell has made a series of acquisitions over the past five years for the purpose of supplementing its IT consulting services and network storage offerings.

The company's financial statements reflect the health of the company. Dell Inc. is a very stable company in terms of financial management. The statements and tables attached in the Appendix reflect a consistent and gradual increasing trend in all the positive indicators. The paper presents and brief description of the company's business segments along with its history. Moreover, it also provides a financial analysis of the company on the basis of the past statements. In the end, recommendations are presented to the investors. It has been proved by the financial analysis and indicators that Dell will experience an increase in its share price. Therefore, the investors are recommended to buy the company's shares.

Table of Contents

Executive Summaryii

Introduction4

History of Dell Inc.4

Business Description5

Competitor Analysis7

Financial Analysis8

Opinion of Bullish investors8

Opinion of Bearish investors9

Beta Analysis9

Analysis of the Financial Ratios10

Recent updates and expansions10

Conclusion and Recommendations11

References12

EXHIBIT 1: Comparison of Share price13

EXHIBIT 2: Ratio Analysis14

EXHIBIT 3: Market Share14

EXHIBIT 4: Income Statement15

EXHIBIT 5: Balance Sheet16

EXHIBIT 6: Cash Flow Statement17

Financial Analysis on Dell Inc

Introduction

Dell is a holding company which produces a wide range of technology products, including mobility products, software and peripherals, desktop personal computers, servers and networking products, storage. Moreover, it offers services to organizations such as configurable information technology, consulting and applications, infrastructure technology, and product related support services. Dell reports its businesses in four reportable segments: Large Enterprise, Public, Small and Medium Business, and Consumer.

History of Dell Inc

The company was incorporated in Delaware in 1987. It was created as a successor company with the brand name of Dell Computer Corporation originally incorporated in Texas in 1984. Company initiated the round of expansions in the year 1993 and formed a new subsidiary in Japan and a new operating unit in Australia by the name of Dell Computer KK and Dell Computer Pty. Limited respectively. In 1998, Dell Inc. formed a joint venture with Newcourt Credit Group Inc (Connor, 1999, p.1). The resulting company was Dell Financial Services L.P. This financial company offers leasing and asset management services to its customers. Company's investment represented a 70% ownership interest in the venture. In 1999, the company acquired ConvergeNet Technologies Inc. As per the agreement, the company exchanged 6,900,000 shares of common stock for all the outstanding shares and options of the acquired company. Moreover, it acquired Plural Inc. in June 2002. Dell Inc. completed its acquisition of ASAP Software Express, Inc. in cash in the same year (Holzner, 2006, p.5).

Dell acquired three companies in 2008. These were the Everdream Corporation, Zing Systems ...