Major Assignment

Comparative Financial Statement Analysis of Dell Technologies inc

MBA Non-Business

As a part of your major assignment, you are required to conduct a comparative ratio analysis of Dell Technologies. As you have studied, in the Financial Statement Analysis chapter, method of ratio analysis. You are required to apply those methods on the financial statements of You can follow the following steps:

Kindly choose at least Dell Technologies find their annual reports on the web which must cover at least 5 years. You can find the annual reports on the corporations official website.

Review the company profile thoroughly and find the comparative financial statements of the corporation.

Calculate the ratios listed at the end of this document from the financial statements of your corporations for at least three years. To do this, you will need to make an Excel Spreadsheet that essentially copies certain lines of your various financial statements onto the spreadsheet. Then, make spreadsheet formulas to calculate each financial ratio that is required.

Once you complete calculating the ratios, then go for intra-corporation (Internal comparison) and external comparison (with industry) and interpret the numerical figures. This is the most important part of your assignment as much of the evaluation marks will be based on this part. You will have to give the reasons for any change among the comparing ratios.

You will need to give logical reasons for any significant change in the ratio figures across the years and corporations.

Objective of the Assignment

The goal with this project is to not only give you a chance to calculate the ratios that accountants and analysts frequently use when evaluating a company, but to also make you look for reasons, (i.e. drivers), for those changes and to think of your own reasons if none are given. If you only do the calculations but do not discuss why certain changes took place, then you havent achieved the goal of the assignment. Therefore, do your best to go past the numbers!

Required ratio calculations, (in their simplest form), are listed below:

Liquidity Ratios:

Current Ratio (Current Assets/Current Liabilities)

Quick Ratio (Current Assets Inventory/Current Liabilities)

Profitability Ratios:

Return on Assets (net income/total assets)

Return on Sales, (aka profit margin percent) (net income/sales)

Assets-to-Equity (total assets/stockholders equity)

Return on Equity (net income/stockholders equity)

Efficiency Ratios:

A/R Turnover Rate (sales/accounts receivable)

Average Collection Period

Payable Turnover

Payable in Days

Inventory Turnover Rate (COGS/average inventory)

Assets Turnover ratio ( Sales/total Assets

Leverage Ratios:

Debt to Assest Ratio (total liabilities/total assets)

Debt-to-Equity Ratio (total liabilities/stockholders equity)

Total Capitalization Ratio

These ratios are explained in your textbook, so if you dont understand why a particular calculation is important or relevant, you can look up more information there.

The assignment must have the following major ten headings

Executive Summary

Introduction to the Assignment

Corporations Background

Methodology

Analysis

Comparative Interpretations

Conclusion

Recommendations

References

Annexure (Financial Statements, Excel Spreadsheet)