DELL Complete Report

FINANCIAL
STATEMENT ANALYSIS
OF DELL INC.
GROUP MEMBERS
Sabir Ayub
Tariq Hayat
Syed Ikram ullah shah

Syed Waqas
Hameed Gul
Nizam Hanif
Zeeshan
DELL Head office at Toronto
The World Youngest CEO for EVER
Introduction of Dell Company

Company:
Public Company
Incorporated:
1984 as Dell Computer Corporation
Employees:
96,000
Sales:
$52.91 billion (2010)
Stock Exchanges: NASDAQ
Ticker Symbol: DELL
NAIC: 334111 Electronic Computer Manufacturing;
334112 Computer Storage Device Manufacturing;
334119 Other Computer Peripheral Equipment
Manufacturing; 454110 Electronic Shopping and MailOrder Houses
Background and origins

Founded in 1984 with a capital of 1000 dollars.
1985 produced first computer of its own design.
Changed its name to Dell Computer Corporation in
1988.
In 1987 started the first international operations.
In 1992, included in Forbes 500 list.
In 1996, Dell started selling through website.
1999, Dell overtook Compaq to become the largest
seller of PCs in US.
In 2002, introduced Dell brand printers.
In 2003, changed its named to Dell, Inc.
In 2004, Michael Dell stepped down as CEO and Kevin
Rollins was asked to take his seat.
Principal Operating Units
Dell Americas
Dell Asia Pacific Japan;
Dell Europe
Middle East
Africa
Early History
Dell was founded by Michael Dell, who started selling personal
computers out of his dorm room as a freshman at the University of Texas
in Austin. Dell bought parts wholesale, assembled them into clones of
IBM computers, and sold them by mail order to customers who did not
want to pay the higher prices charged by computer stores. The scheme
was an instant success. He was soon grossing $80,000 a month, and in
1984 he dropped out of school, incorporating his business as Dell
Computer Corporation (though it would initially do business as PC's
Limited).
At the time, the PC industry was dominated by such large firms as IBM,
while smaller, lesser known mail-order firms sold IBM clones at a steep
discount. Dell used low-cost direct marketing to undersell the better
known computers being sold through such high-overhead dealer
networks. Dell placed ads in computer magazines, gearing his
merchandise to buyers who were sophisticated enough to recognize highquality merchandise at low prices. Customers placed orders to Dell by
dialing a toll-free number. As a result of these methods, Dell's computers
became the top brand name in the direct-mail market.
Early History
Dell achieved sales of $6 million its first full year in business,
approaching $40 million the next year. Dell hired former investment
banker E. Lee Walker as president in 1986 to help deal with his firm's
explosive growth. By 1987 Dell held a dominant position in the mailorder market, but it was clear that the firm had to move beyond mail order
if it was to continue growing. To accomplish this goal the firm needed a
larger professional management staff, and Dell hired a group of
marketing executives from Tandy Corporation, another maker of low-cost
PCs. The group built a sales force able to market to large corporations
and put together a network of value-added resellers, who assembled
packages of computer components to sell in specialized markets.
Regardless, the firm continued growing rapidly, opening a London office
that sold $4 million worth of computers during one month in 1988. Dell
also formed a Canadian subsidiary. Early in 1988 the firm formed various
divisions to raise its profile among corporate, government, and
educational buyers. With reported sales of $159 million in 1987, the firm
went public in June 1988, selling 3.5 million shares at $8.50 a share.
Dell at Fortune 500

Rank
Year
2009
Revenues
($million)
61,101
Profit
($million)
2,478
33
34
2008
61,133
2,947
34
2007
57,095
2,614
25
2006
55,908
3,572
Vision
Its the way we do business. It's the way we interact
with the community. It's the way we interpret the
world around us-- our customers needs, the future
of technology, and the global business climate.
Whatever changes the future may bring our vision -Dell Vision -- will be our guiding force.
So Dell needs full customer satisfaction. In order to
become the most successful computer company,
they need the newest technology and loyal
customers.
Mission
Dell's mission is to be the most successful
Computer Company in the world at delivering the
best customer experience in markets we serve. In
doing so, Dell will meet customer expectations of:
Highest quality
Leading technology
Competitive pricing
Individual and company accountability
Best-in-class service and support
Flexible customization capability
Superior corporate citizenship
Financial stability
Objective
Dell's aim is to create loyal customers by
providing superior experience at a great
value. They are committed to direct
relationships, providing best products with
standard based technology outperforming the
competition with value and a superior
customer experience. Provide customers with
superb value technology.
MAJOR ACHIEVEMENTS
Introduced fastest computer in 1986
Its has lowest price among all other
Went to SPRING Comdexs 86
Expanding his business globally
Open office in London in June 1987
Introduced in Li-ON battery in 1993
AMD mpu firstly used by DELL
www.dell.com is launched in June 1994
MAJOR SETBACKS
First setback experienced in year 1984 When
huge stock of 256k memory chip become
useless
OLYMPIC series got huge failure Potentially
affected batteries were sold with Laptops in
2006
DELL PRODUCTS
Laptops and Minis
Desktop Computers
Printers and Ink
Televisions
Alien ware
Digital Cameras
Gaming PC and Console
GPS (vehicle, phone, outdoor)
DELL PRODUCTS
Handhelds & Phones
Memory (Dell memory, memory sticks, memory upgrades)
Laptop accessories (cases, mice, keyboards, adapters, batteries, etc;)
Mp3 players
Networking (adapters, routers, wireless / wifi, etc)
Software (Anti-Virus and security, Business and Office, Operating
Systems, etc,)
Desktop Accessories (Keyboard, speakers, headphones, headset,
adapters etc)
Income Statement of Dell Inc.

2010
2009
2008
2007
2006
Operating Revenue
52,902
61,101
61,133
57,420
55,788
Cost of Revenue
-42,789
-49,375
-48,855
-47,433
-45,503
Gross Operating Profit
10,113
11,726
12,278
9,987
10,285
Selling/General/Admin Expense
-6,465
-7,102
-7,538
-5,948
-5,051
Research & Development
-624
-663
-610
-498
-458
EBITDA
3,024
3,961
4,130
3,541
4,776
Depreciation & Amortization
-852
-769
-607
-471
-394
Operating Income
2,172
3,192
3,523
3,070
4,382
Interest Income
57
180
496
368
308
Other Income, Net
-45
47
-64
-48
-53
Total Income Avail For Interest Expense

(EBIT)
2,184
3,417
3,872
3,390
4,637
Interest Expense
-160
-93
-45
-45
-29
Pre-Tax Income
2,024
3,324
3,827
3,345
4,608
Income Taxes
-591
-846
-880
-762
-1,006
Total Net Income
1,433 2,478 2,947 2,583 3,602
Balance Sheet Dell Inc.

Assets
in Millions of Dollars
2010
2009
2008
2007
2006
Cash and Equivalents
10,635
8,352
7,764
9,546
7,054
Marketable Securities
373
740
08
752
2,016
Receivables
8,543
6,443
7,693
6,152
5,448
Inventories
1,051
867
1,180
660
588
Other Current Assets
3,643
3,749
3,035
2,829
2,688
Total Current Assets
24,245
20,151
19,880
19,939
17,794
Net Fixed Assets
2,181
2,277
2,668
2,409
1,993
Intangibles
1,694
724
780
Cost in Excess
4,074
1,737
1,648
Other Non-Current Assets
1,458
1,611
2,585
3,287
3,465
T. Non-Current Assets
9,407
6,349
7,681
5,696
5,458
Total Assets
33,652
26,500
27,561
25,635
23,252
Balance Sheet Dell Inc.

Liabilities & Equities
in Millions of Dollars
2010
2009
2008
2007
2006
Accounts Payable
11,373
8,309
11,492
10,430
9,868
Short Term Debt
663
113
225
188
65
Accrued Liabilities
3,884
1,544
1,920
2,770
2,429
Deferred Revenues
3,040
2,649
2,486
2,032
1,842
Other Current Liabilities
2,244
2,403
2,371
1,969
Total Current Liabilities
18,960
14,859
18,526
17,791
16,173
Long Term Debt
3,417
1,898
362
569
625
Other Non-Current Liabilities
5,634
5,472
4,938
2,947
2,407
Total Non-Current Liabilities
9,051
7,370
5,300
3,516
3,032
Total Liabilities
28,011
22,229 23,826
21,307 19,205
Common Shareholder's Equity
5,641
4,271
3,735
4,328
4,047
Total Liabilities &

Shareholder's Equity
33,652
26,500
27,561
25,635
23,252
INCOME STATEMENT (Horizontal Analysis)

2010
2009
2008
Operating Revenue
52,902
95
61,101
110
Cost of Revenue
-42,789
94
-49,375
Gross Operating Profit
10,113
98
Selling/General/Admin Expense
-6,465
2007
2006
61,133 110
57,420
103
55,788 100%
109
-48,855
-47,433
104
-45,503
11,726
114
12,278 119
9,987
97
10,285 100%
128
-7,102
141
-7,538
149
-5,948
118
-5,051
100%
-624
136
-663
145
-610
133
-498
109
-458
100%
EBITDA
3,024
63
3,961
83
4,130
86
3,541
74
4,776
100%
Depreciation & Amortization
-852
216
-769
195
-607
154
-471
120
-394
100%
Operating Income
2,172
50
3,192
73
3,523
80
3,070
70
4,382 100%
Interest Income
57
19
180
58
496
161
368
119
308
100%
Other Income, Net
-45
85
47
-89
-64
121
-48
91
-53
100%
(EBIT)
2,184
47
3,417
74
3,872
84
3,390
73
4,637
100%
Interest Expense
-160
552
-93
321
-45
155
-45
155
-29
100%
Pre-Tax Income
2,024
44
3,324
72
3,827
83
3,345
73
4,608
100%
Income Taxes
-591
59
-846
84
-880
87
-762
76
-1,006
100%
Total Net Income
1,433
40
2,478
69
2,947
82
2,583
72
3,602 100%
107
%
100%
Balance Sheet Horizontal Analysis

Assets
2010 %
2009 %
2008 %
2007 %
2006 %
Cash and Equivalents
10,635
151
8,352
118
7,764
110
9,546
135
7,054
100
373
19
740
37
208
10
752
37
2,016
100
Receivables
8,543
157
6,443
118
7,693
141
6,152
113
5,448
100
Inventories
1,051
179
867
147
1,180
201
660
112
588
100
3,643
136
3,749
139
3,035
113
2,829
105
2,688
100
24,245
136
20,151
113
19,880
112
19,939
112
17,794
100
Net Fixed Assets
2,181
109
2,277
114
2,668
134
2,409
121
1,993
100
Intangibles
1,694
724
780
Cost in Excess
4,074
1,737
1,648
Other Non-Current Assets
1,458
42
1,611
46
2,585
75
3,287
95
3,465
100
9,407
172
6,349
116
7,681
141
5,696
104
5,458
100
Total Assets
33,652
145
26,500
114
27,561
119
25,635
110
23,252
100
Balance Sheet Horizontal Analysis

Liabilities
2010 %
2009 %
Accounts Payable
11,373
115
8,309
84
11,492
116
10,430
106
9,868
100
Short Term Debt
663
1020
113
174
225
346
188
289
65
100
Accrued Liabilities
3,884
160
1,544
64
1,920
79
2,770
114
2,429
100
Deferred Revenues
3,040
165
2,649
144
2,486
135
2,032
110
1,842
100
2,244
114
2,403
122
2,371
120
1,969
100
2008 %
2007
2006 %
18,960
117
14,859
92
18,526
115
17,791
110
16,73
100
Long Term Debt
3,417
547
1,898
304
362
58
569
91
625
100
5,634
234
5,472
227
4,938
205
2,947
122
2,407
100
9,051
299
7,370
243
5,300
175
3,516
116
3,032
100
Total Liabilities
28,011
146
22,229
116
23,826
124
21,307
111
19,205
100
Common Shareholder's Equity
5,641
139
4,271
106
3,735
92
4,328
107
4,047
100
Total Liabilities &

33,652
145
26,500
114
27,561
119
25,635
110
23,252
100
INCOME STATEMENT (Trend Analysis)

2010 %
2009 %
2008 %
2007 %
2,006
Operating Revenue
52,902
87
61,101
100
61,133
106
57,420
103
55,788
100
Cost of Revenue
-42,789
87
-49,375
101
-48,855
103
-47,433
104
-45,503
100
Gross Profit
10,113
86
11,726
96
12,278
123
9,987
97
10,285
100
S.G&A Expenses
-6,465
91
-7,102
94
-7,538
127
-5,948
118
-5,051
100
-624
94
-663
109
-610
122
-498
109
-458
100
3,024
76
3,961
96
4,130
117
3,541
74
4,776
100
Dep. & Amortization
-852
111
-769
127
-607
129
-471
120
-394
100
Operating Income
2,172
68
3,192
91
3,523
115
3,070
70
4,382
100
Interest Income
57
32
180
36
496
135
368
119
308
100
Other Income, Net
-45
-96
47
-73
-64
133
-48
91
-53
100
EBIT
2,184
64
3,417
88
3,872
114
3,390
73
4,637
100
Interest Expense
-160
172
-93
207
-45
100
-45
155
-29
100
Pre-Tax Income
2,024
61
3,324
87
3,827
114
3,345
73
4,608
100
Income Taxes
-591
70
-846
96
-880
115
-762
76
-1,006
100
1,433
58
2,478
84
2,583
72
3,602
100
EBITDA
Total Net Income
2,947 114
Balance Sheet (Trend Analysis)

Assets
Cash & Equivalents
2010 %
2009 %
2008 %
2007 %
2,006
10,635
127
8,352
108
7,764
81
9,546
135
7,054
100
373
50
740
356
208
28
752
37
2,016
100
Receivables
8,543
133
6,443
84
7,693
125
6,152
113
5,448
100
Inventories
1,051
121
867
73
1,180
179
660
112
588
100
3,643
97
3,749
124
3,035
107
2,829
105
2,688
100
24,245
120
20,151
101
19,880
100
19,939
112
17,794
100
Net Fixed Assets
2,181
96
2,277
85
2,668
111
2,409
121
1,993
100
Intangibles
1,694
234
724
93
780
Cost in Excess
4,074
235
1,737
105
1,648
Other Non-Current
Assets
1,458
91
1,611
62
2,585
79
3,287
95
3,465
100
9,407
148
6,349
83
7,681
135
5,696
104
5,458
100
96
27,561
Total Assets
33,652 127 26,500
108 25,635 110 23,252 100
Balance Sheet (Trend Analysis)

Liabilities
2010 %
2009 %
2008 %
2007 %
2006 %
Accounts Payable
11,373
137
8,309
72
11,492
110
10,430
106
9,868
100
Short Term Debt
663
587
113
50
225
120
188
289
65
100
Accrued Liabilities
3,884
252
1,544
80
1,920
69
2,770
114
2,429
100
Deferred Revenues
3,040
115
2,649
107
2,486
122
2,032
110
1,842
100
2,244
93
2,403
101
2,371
120
1,969
100
18,960
128
14,859
80
18,526
104
17,791
110
16,173
100
Long Term Debt
3,417
180
1,898
524
362
64
569
91
625
100
5,634
103
5,472
111
4,938
168
2,947
122
2,407
100
9,051
123
7,370
139
5,300
151
3,516
116
3,032
100
28,011
126
22,229
93
23,826
112
21,307
111
19,205
100
5,641
132
4,271
114
3,735
86
4,328
107
4,047
100
33,652
127
26,500
96
27,561
108
25,635
110
23,252
100
Total Liabilities
Common Shareholder's
Equity
Total Liabilities &

Working Capital = Current Assets - Current

Liabilities
Years
C. Assets
C. Liabilities
W. Capital
For 2006
17794
16173
1621
For 2007
19939
17791
2148
For 2008
19880
18526
1354
For 2009
20151
14859
5292
For 2010
24245
18960
5285
Working Capital = Current Assets - Current

Liabilities
6000
5292
5285
For 2009
For 2010
5000
4000
3000
2148
2000
1621
1354
1000
0
For 2006
For 2007
For 2008
Working
Capital
Current Ratio = Current Assets / Current Liabilities
Years
C. Assets
C. Liabilities
C. Ratio
For 2006
17794
16173
1.10
For 2007
19939
17791
1.12
For 2008
19880
18526
1.07
For 2009
20151
14859
1.36
For 2010
24245
18960
1.28
Current Ratio = Current Assets / Current Liabilities
1.60
1.36
1.40
1.20
1.10
1.12
For 2006
For 2007
1.28
1.07
1.00
0.80
0.60
0.40
0.20
0.00
For 2008
Current
Ratio
For 2009
For 2010
Acid Test Ratio = Cash Equaliant + Marketable

Securities / Current Liabilities
Years
C. Equaliant
For 2006
7054
For 2007
Market.
Securities
Net A/C Rec.
Current Liabilities
Acid Test Ratio
2016
5448
16173
0.90
9546
752
6152
17791
0.92
For 2008
7764
208
1693
18526
0.52
For 2009
8352
740
6443
14859
1.05
For 2010
10635
373
8543
18960
1.03
Acid Test Ratio = Cash Equaliant + Marketable

Securities / Current Liabilities
1.20
1.00
0.90
1.05
1.03
For 2009
For 2010
0.92
0.80
0.60
0.52
0.40
0.20
0.00
For 2006
For 2007
For 2008
Debt Ratio = Total Liabilities / Total Assets
Years
T. Liabilities
T. Assets
Debt Ratio
For 2006
19205
23252
0.83
For 2007
21307
25635
0.83
For 2008
23826
27561
0.86
For 2009
22229
26500
0.84
For 2010
28011
33652
0.83
Debt Ratio = Total Liabilities / Total Assets

0.87
0.86
0.86
0.85
0.84
0.84
0.83
0.83
0.83
0.83
0.82
0.81
0.80
For 2006
For 2007
For 2008
For 2009
For 2010
Debt To Equity Ratio = Total Liabilities /

Stockholder's Equity
Years
T. Liabilities
Shareholder's
Equity
Debt to
equity Ratio
For 2006
19205
4047
4.75
For 2007
21307
4328
4.92
For 2008
23826
3735
6.38
For 2009
22229
4271
5.20
For 2010
28011
5641
4.97
Debt To Equity Ratio = Total Liabilities /

Stockholder's Equity
7.00
6.38
6.00
5.00
4.75
5.20
4.92
4.97
4.00
3.00
2.00
1.00
0.00
For 2006
For 2007
For 2008
For 2009
For 2010
Inventory Turnover = CG/Avg. Inventory
Avg.
Inventory
Invent
Turnover
Days
Years
C.G.S
For 06-07
47483
624
76.09
4.80
For 07-08
48855
920
53.10
6.87
For 08-09
49375
1023.5
48.24
7.57
For 09-10
42789
959
44.62
8.18
Inventory Turnover = CG/Avg. Inventory
9.00
8.18
7.57
8.00
6.87
7.00
6.00
5.00
4.80
4.00
3.00
2.00
1.00
0.00
For 06-07
For 07-08
For 08-09
For 09-10
Account Receivable Turnover = Net sales / Avg.

Receivable
Years
Net Sales
For 06-07
57420
For 07-08
Avg.
Receivable
A/R. Turnover
Days
5800
9.90
36.8687
61133
6922.5
8.83
41.3314
For 08-09
61101
7068
8.64
42.2222
For 09-10
52902
7495.5
7.06
51.7156
Account Receivable Turnover = Net sales / Avg.

Receivable
60.0000
51.7156
50.0000
40.0000
41.3314
42.2222
For 07-08
For 08-09
36.8687
30.0000
20.0000
10.0000
0.0000
For 06-07
For 09-10
Return on Assets = Net Income / Avg. Total

Assets
Years
Net Income
Avg. Total
Assets
Return on
Assets
For 06-07
2583
24443.500
0.106
For 07-08
2947
26598.000
0.111
For 08-09
2478
27030.500
0.092
For 09-10
1433
30076.000
0.048
Return on Assets = Net Income / Avg. Total

Assets
0.120
0.111
0.106
0.100
0.092
0.080
0.060
0.048
0.040
0.020
0.000
For 06-07
For 07-08
For 08-09
For 09-10
Net Profit Margin = Net Income / Net Sale X 100
Years
Net Income
Net Sales
Profit Margin
For 2006
3602
55788
6.457
For 2007
2583
57420
4.498
For 2008
2947
61133
4.821
For 2009
2478
61101
4.056
For 2010
1433
52902
2.709
Net Profit Margin = Net Income / Net Sale X 100
7.000
6.457
6.000
5.000
4.498
4.821
4.056
4.000
2.709
3.000
2.000
1.000
0.000
For 2006
For 2007
For 2008
For 2009
For 2010
Gross Profit Margin = Gross Profit / Net sales x 100
Years
Gross
Profit
Net sales
Gross Profit
Margin
For 2006
10285
55788
18.436
For 2007
9987
57420
17.393
For 2008
12278
61133
20.084
For 2009
11726
61101
19.191
For 2010
10113
52902
19.116
Gross Profit Margin = Gross Profit / Net sales x 100
20.500
20.084
20.000
19.500
19.191
19.116
For 2009
For 2010
19.000
18.500
18.436
18.000
17.393
17.500
17.000
16.500
16.000
For 2006
For 2007
For 2008
Operating Income Margin = Operating Income

/ Net sales x 100
Years
Operating
Income
Operating
Income Margin
Net sales
For 2006
4382
55788
7.85
For 2007
3070
57420
5.34
For 2008
3523
61133
5.76
For 2009
3192
61101
5.22
For 2010
2172
52902
4.10
Operating Income Margin = Operating Income

/ Net sales x 100
9.000
8.000
7.855
7.000
5.763
6.000
5.347
5.224
5.000
4.106
4.000
3.000
2.000
1.000
0.000
For 2006
For 2007
For 2008
For 2009
For 2010

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FINANCIAL

Syed Ikram ullah shah

DELL Head office at Toronto

The World Youngest CEO for EVER

Introduction of Dell Company

Background and origins

Principal Operating Units

Dell at Fortune 500

Income Statement of Dell Inc.

Gross Operating Profit

Research & Development

Depreciation & Amortization

Other Income, Net

Total Income Avail For Interest Expense

Total Net Income

1,433 2,478 2,947 2,583 3,602

Balance Sheet Dell Inc.

Cash and Equivalents

Other Current Assets

Total Current Assets

Net Fixed Assets

Other Non-Current Assets

Balance Sheet Dell Inc.

Short Term Debt

Other Current Liabilities

Total Current Liabilities

Long Term Debt

Other Non-Current Liabilities

Total Non-Current Liabilities

Common Shareholder's Equity

Total Liabilities &

INCOME STATEMENT (Horizontal Analysis)

Gross Operating Profit

Research & Development

Depreciation & Amortization

Other Income, Net

Total Net Income

Balance Sheet Horizontal Analysis

Cash and Equivalents

Other Current Assets

Total Current Assets

Net Fixed Assets

Other Non-Current Assets

Balance Sheet Horizontal Analysis

Short Term Debt

Other Current Liabilities

Total Current Liabilities

Long Term Debt

Other Non-Current Liabilities

Total Non-Current Liabilities

Common Shareholder's Equity

Total Liabilities &

INCOME STATEMENT (Trend Analysis)

Dep. & Amortization

Other Income, Net

Research & Development

Total Net Income

Balance Sheet (Trend Analysis)

Other Current Assets

Total Current Assets

Net Fixed Assets

33,652 127 26,500

108 25,635 110 23,252 100