TABLE 2.4 Summary of Dell's Key Financial Statements Balance Sheet Cash and cash equivalent Accounts receivables, net Inventories Total current assets Total assets January 28, January 30, 2005 2004 4.747 4,317 4,414 3,635 459 327 16,897 10,633 23,2115 19,311 Total current liabilities Long-term debt Total liabilities 14,136 505 16,730 10,896 SOS 13,031 8,195 9,174 6,485 6,823 6,131 6,280 49,205 9,015 4,254 3,043 41,444 7,522 3,544 2,645 Common stock Retained earnings Total stockholders' aquity Income Statement Net revenue Gross income (margin) Operating income (margin) Net income (margin) Statements of Retained Earnings Beginning retained earnings Net income Ending retained earnings Statement of Cash Flows Net cash from operating activities Net cash used in investing activities Net cash used in financing activities Effect of exchange rate changes Beginning cash position Ending cash position 6,131 3,043 9,174 3,486 2,645 6,131 5,310 (2,317) (3,128) 565 4,317 4,747 3,670 (2,814) (1,383) 612 4,232 4,317 On the basis of the financial information and financial data presented, compute the various financial ratios and make an informed analysis of the Dell's financial health. Dell issued $500 million worth of senior notes and long-term bonds with a combined interest rate of 2.259%. The company stock sold for 41.5 in February, 2015. (a) Debt ratio (b) Times-interest-earned ratio (c) Current ratio (d) Quick (acid-test) ratio (e) Inventory turnover ratio (f) Day's sales outstanding (DSO) (g) Total assets turnover (h) Profit margin on sales (i) Return on total assets (j) Return on common equity (k) Price-to-earnings ratio (1) Book value per share TABLE 2.4 Summary of Dell's Key Financial Statements Balance Sheet Cash and cash equivalent Accounts receivables, net Inventories Total current assets Total assets January 28, January 30, 2005 2004 4.747 4,317 4,414 3,635 459 327 16,897 10,633 23,2115 19,311 Total current liabilities Long-term debt Total liabilities 14,136 505 16,730 10,896 SOS 13,031 8,195 9,174 6,485 6,823 6,131 6,280 49,205 9,015 4,254 3,043 41,444 7,522 3,544 2,645 Common stock Retained earnings Total stockholders' aquity Income Statement Net revenue Gross income (margin) Operating income (margin) Net income (margin) Statements of Retained Earnings Beginning retained earnings Net income Ending retained earnings Statement of Cash Flows Net cash from operating activities Net cash used in investing activities Net cash used in financing activities Effect of exchange rate changes Beginning cash position Ending cash position 6,131 3,043 9,174 3,486 2,645 6,131 5,310 (2,317) (3,128) 565 4,317 4,747 3,670 (2,814) (1,383) 612 4,232 4,317 On the basis of the financial information and financial data presented, compute the various financial ratios and make an informed analysis of the Dell's financial health. Dell issued $500 million worth of senior notes and long-term bonds with a combined interest rate of 2.259%. The company stock sold for 41.5 in February, 2015. (a) Debt ratio (b) Times-interest-earned ratio (c) Current ratio (d) Quick (acid-test) ratio (e) Inventory turnover ratio (f) Day's sales outstanding (DSO) (g) Total assets turnover (h) Profit margin on sales (i) Return on total assets (j) Return on common equity (k) Price-to-earnings ratio (1) Book value per share
