Think about liquidity and financial leverage ratios

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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. 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. Obtain Dell’s most recent financial statements from their 10-K Annual Report and its most recent stock price. Note that Dell became a privately-held company in 2013, Dell’s final closing stock price on 10/29/13 was $13.73. Dell's final annual 10-K report, for the year ending in 2/1/13 is provided through the link below. Compute the financial ratios for Dell for this most recent period. How has Dell changed since the time of the case, year ended in 2001?

Reference no: EM131310033

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