using the financial ratios of the companies (provided) , you will compare the financial ratios listed and prepare your comments about the two companies performance based on the ratio calculations.

Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab and also include your commentary.
		Dell			Apple			Interpretation and comparison between the two companies' ratios (reading Chapter 15 will help you prepare the commentary).
Liquidity								The comparison of the ratios is an important part of the project. A good approach is to: 1) briefly explain the definition / meaning of the ratio. 2) Indicate why the higher or lower ratio is better. 3) Then compare the two companies on this basis. Remembereach ratio below requires a comparison.
Current Ratio	Current assets			3.25			1.44
	Current liabilities
Inventory Turnover	Cost of Goods Sold			5.5			5.9
	Average Inventory			times			times
Number of Days Sales In Inventory	Average Inventory			67			62
	Average Daily Cost of Goods Sold			days			days
Accounts Receivable Turnover	Net credit sales			13.1			15.4
	Average Net Accounts Receivable
Number of Days' sales outstanding (DSO)	Average Net Accounts Receivable			27.9			23.6
	Average Daily Sales			days			days
Solvency:
Ratio of Liabilities to Stockholdrs Equity	Total Liabilities			30.3%			35.3%
	Stockeholders Equity
Number of Time Preferred Dividends are Earned	Net Income			3			1.5
	Preferred Dividends
Ratio of Fixed Assets to Long Term Liabilities	Fixed Assets			23.3%			84.0%
	Long-term Liabilities
Times-Interest-Earned Ratio	Net Income + Int Expense + Tax Expense			542.3			11.6
	Interest Expense
Profitability
Dividend Yield	Dividend per share of common stock (Yahoo Finance 11/1/2013)			1.0%			2.0%
	Market price per share of common stock (Yahoo Finance 11/1/2013)
Rate of Return on Common Stockholders' Equity (ROE)	Net income - Preferred dividends			8.0%			68.5%
	Average common stockholders' equity
Price/Earnings Ratio (Multiple)	12/31/12			29			24
	EPS as of 12/31/2012
Earnings per Share of Common Stock (basic - common)	As given in the income statement			0.89			3.01
Ratio of Net Sales to Total Assets	Net Sales			0.65			1.45
	Average Total Assets
Rate Earned on Total Assets (ROA)	Net Income + Interest Expense			6.1%			14.4%
	Average Total Assets