Compute the financial ratios for Dell Computer Corporation and IBM Examine these ratios along with those in Exhibit 10 What do they tell you about Dell and its competitors Think about l
Compute the financial ratios for Dell Computer Corporation and IBM. Examine these ratios along with those in Exhibit 10. What do they tell you about Dell and its competitors? Think about liquidity and financial leverage (debt) ratios, efficiency (activity) ratios, and profitability and growth ratios. 3. Discuss Dell’s competitive advantages, and highlight what has enabled the company to compete and substantially outperform its competitors. Note that you can look at the cash cycle using the efficiency ratios from Exhibit 10, and a DuPont analysis.
FINA 6201: Financial Theory and Policy
4. Compute the changes in Dell’s stock price and those of its competitors using the data in Exhibit 6. Examine the price-to-earnings and market-to-book ratios in case Exhibit 6. Why do you think Dell’s stock price is falling? 5. Dell went private in 2013 and was public again prior to 2019. Examine the exhibit below that summarizes Dell’s ratios for 2001, 2013, and 2019. How did Dell change between 2001 and 2013 prior to going private? How had Dell changed over the time it was private? Where do you think Dell will go in the future?