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1. Calculate the NOPAT decomposition (NROA, leverage, financing spread) for all years of Dell, assuming that a) operating cash is 10% of sales, and b)
1. Calculate the NOPAT decomposition (NROA, leverage, financing spread) for all years of Dell, assuming that a) operating cash is 10% of sales, and b) opearting cash is 20% of sales. 2. What does the analysis tell you about i) how Dell's performance held up over time, and ii) how easy or difficult it is to use the NOPAT model? Dell Balance Sheet (in thousands) | |||||||||||||||
PERIOD ENDING | 1/31/2013 | 1/31/2012 | 1/31/2011 | 1/31/2010 | 1/31/2009 | 2/1/2008 | 2/2/2007 | 2/3/2006 | 1/28/2005 | 1/30/2004 | 1/31/2003 | 2/1/2002 | 2/1/2001 | 1/28/2000 | |
ASSETS | |||||||||||||||
Current Assets: | |||||||||||||||
Cash and cash equivalents | 12,569,000.00 | 13,852,000 | 13,913,000.00 | 10,635,000 | $ 8,352,000 | $ 7,764,000 | $ 9,546,000 | $ 7,042,000 | $ 4,747,000 | $ 4,317,000 | $ 4,232,000 | $ 3,641,000 | $ 4,910,000 | $ 3,809,000 | |
Short-term investments | 208,000.00 | 966,000 | 452,000.00 | 373,000 | 740,000 | 208,000 | 752,000 | 2,016,000 | 5,060,000 | 835,000 | 406,000 | 273,000 | 528,000 | 323,000 | |
Accounts receivable, net | 6,629,000.00 | 6,476,000 | 10,136,000.00 | 8,543,000 | 6,443,000 | 7,693,000 | 6,152,000 | 5,452,000 | 4,548,000 | 3,635,000 | 2,586,000 | 2,269,000 | 2,895,000 | 2,608,000 | |
Inventories, net of allowance | 1,382,000.00 | 1,404,000 | 1,301,000.00 | 1,051,000 | 867,000 | 1,180,000 | 660,000 | 576,000 | 459,000 | 327,000 | 306,000 | 278,000 | 400,000 | 391,000 | |
Other Current Assets | 7,180,000.00 | 6,750,000 | 3,219,000.00 | 3,643,000 | 3,749,000 | 3,035,000 | 2,829,000 | 2,620,000 | 2,083,000 | 1,519,000 | 1,394,000 | 1,416,000 | 758,000 | 550,000 | |
Total Current Assets | 27,968,000.00 | 29,448,000 | 29,021,000.00 | 24,245,000 | 20,151,000 | 19,880,000 | 19,939,000 | 17,706,000 | 16,897,000 | 10,633,000 | 8,924,000 | 7,877,000 | 9,491,000 | 7,681,000 | |
PPE, net of depreciation | 2,126,000.00 | 2,124,000 | 1,953,000.00 | 2,181,000 | 2,277,000 | 2,668,000 | 2,409,000 | 2,005,000 | 1,691,000 | 1,517,000 | 913,000 | 826,000 | 996,000 | 765,000 | |
Investments | 2,565,000.00 | 3,404,000 | 1,503,000.00 | 781,000 | 454,000 | 1,560,000 | 2,147,000 | 2,691,000 | 4,294,000 | 6,770,000 | 5,267,000 | 4,373,000 | 2,418,000 | 1,048,000 | |
Long-term financing receivables | 1,349,000.00 | 1,372,000 | 332,000 | 500,000 | 407,000 | 323,000 | 325,000 | 199,000 | - | - | - | - | - | ||
Goodwill | 9,304,000.00 | 5,838,000 | 4,365,000.00 | 4,074,000 | 1,737,000 | 1,648,000 | 110,000 | - | - | - | - | - | - | 1,673,000 | |
Intangible Assets, net of amortization | 3,374,000.00 | 1,857,000 | 1,495,000.00 | 1,694,000 | 724,000 | 780,000 | 45,000 | - | - | - | - | - | - | 304,000 | |
Other non-current Assets | 854,000.00 | 490,000 | 262,000.00 | 345,000 | 657,000 | 618,000 | 662,000 | 382,000 | 134,000 | 391,000 | 366,000 | 459,000 | 530,000 | - | |
Total Assets | 47,540,000.00 | 44,533,000 | 38,599,000.00 | 33,652,000 | 26,500,000 | 27,561,000 | 25,635,000 | 23,109,000 | 23,215,000 | 19,311,000 | 15,470,000 | 13,535,000 | 13,435,000 | 11,471,000 | |
LIABILITIES | |||||||||||||||
Current Liabilities: | |||||||||||||||
Short Term Borrowing | 3,843,000.00 | 2,867,000 | 851,000.00 | 663,000 | 113,000 | 225,000 | 188,000 | - | - | - | - | - | - | - | |
Accounts Payable | 11,579,000.00 | 11,656,000 | 15,474,000.00 | 11,373,000 | 8,309,000 | 11,492,000 | 10,430,000 | 9,840,000 | 8,895,000 | 7,316,000 | 5,989,000 | 5,075,000 | 4,286,000 | 3,538,000 | |
Accrued and other | 3,644,000.00 | 3,740,000 | 3,884,000 | 3,788,000 | 4,323,000 | 5,141,000 | 6,087,000 | 5,241,000 | 3,580,000 | 2,944,000 | 2,444,000 | 2,257,000 | 1,654,000 | ||
Short-term deferred service revenue | 4,373,000.00 | 3,738,000 | 3,158,000.00 | 3,040,000 | 2,649,000 | 2,486,000 | 2,032,000 | - | - | - | - | - | - | - | |
Total Current Liabilities | 23,439,000.00 | 22,001,000 | 19,483,000.00 | 18,960,000 | 14,859,000 | 18,526,000 | 17,791,000 | 15,927,000 | 14,136,000 | 10,896,000 | 8,933,000 | 7,519,000 | 6,543,000 | 5,192,000 | |
Long Term Debt | 5,242,000.00 | 6,387,000 | 5,146,000.00 | 3,417,000 | 1,898,000 | 362,000 | 569,000 | 504,000 | 505,000 | 505,000 | 506,000 | 520,000 | 509,000 | 508,000 | |
Long-term deferred service revenue | 3,971,000.00 | 3,855,000 | 3,518,000.00 | 3,029,000 | 3,000,000 | 2,774,000 | 2,189,000 | - | - | - | - | - | - | - | |
Other non-current liabilities | 4,187,000.00 | 3,373,000 | 2,686,000.00 | 2,605,000 | 2,472,000 | 2,164,000 | 758,000 | 2,549,000 | 2,089,000 | 1,630,000 | 1,158,000 | 802,000 | 761,000 | 463,000 | |
Total Liabilities | 36,839,000.00 | 35,616,000 | 30,833,000.00 | 28,011,000 | 22,229,000 | 23,826,000 | 21,307,000 | 18,980,000 | 16,730,000 | 13,031,000 | 10,597,000 | 8,841,000 | 7,813 |
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