FIN510—Week 3 Signature Assignment: Financial Statement Analysis

4. Perform your ratio analysis on Dell Inc.: a. A good place to start would be to perform a complete DuPont analysis of the company. The DuPont analysis might provide guidance as to what particular areas of the company should be examined next and what ratios should be calculated. Be sure to include ratios that cover the following areas: i. Asset Management ii. Market Value In addition to the DuPont analysis ratios, be sure to present and discuss at least six relevant ratios that your team feels may best assess the company’s performance. Asset Management: • Daily Receivables Turnover • Days Receivables • Inventory Turnover – COGS=Costs of goods sold except depreciation + Depreciation o Inventory turnover ratio=COGS / Inventories • Days Inventory • Fixed Assets Turnover – Fixed assets turnover ratio=Sales / Net fixed assests • Total Assets Turnover – Total assets turnover ratio=Sales / Total assests Market Value: • Price-Earnings Ratio – (P/E)ratio=Price per share / Earnings per share • Market-to-Book Ratio o Book value per share=Total common equity / Shares outstanding o Market/book ratio (M/B)=Market price per share / Book value per share