Publicly Financial Analysis of Dell and Apple Essay

Total Length: 828 words ( 3 double-spaced pages)

Total Sources: 4

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Publicly

FINANCIAL ANALYSIS OF DELL AND APPLE

Current asset ratio

Dell has 1.48 current ratio in 2011 as compared to previous year (1.28) their short-term financial position has improved, which shows that dell is in position to meet its short-term liabilities without any difficulty. On the other hand, apple short-term financial position has fallen from 1.6 to 1.5 but it is still in a position to meet its short-term financial position.

Inventory turnover ratio

Dell has a slow rate to covert its stock into sales (8.25) as compared to Apple, which has a rate of approximately 26.25. Therefore, dell has more funds locked in stocks.

Days sales in inventory

Dell takes fewer days to convert its stock into sales in 2011 as compare to apple it shows that its management is more efficient in handling inventory.

Receivable turnover ratio

Apple has slightly better in receiving amount from its debtor as it has rate of 10.37 as compared to dell, which has rate of 1o.this shows that Apple management is slightly better in handling its debtors in 2011.

Average collection period

Apple provides more days to its debtors (85 days) as compare to dell, which provides 38 days to its debtors in 2011.

Debt to asset ratio

Dell has charge on its assets (0.83) as compared to apple, which has only 0.

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53 charges on its assets in 2011

Gross profit ratio

Dell makes less profit (17.50) as compares to apple, which makes profit at the rate of approximately of 44.6%. It shows that dell is more concerned in fulfilling its cost and charges fewer prices.

Profit margin

Dell after meeting its admin and selling expenses retains only 2.70% while apple makes 28.20% profit, which shows that apple charges high price.

Return on total assets

Dell makes less profit on assets, which may indicate two things. First is that management less efficient in handling its assets other is as their profit margin is less so that shows less intention of their in making profit. However, apple makes huge return on its assets that is around 30% in 2011 which may indicate that they are efficient in handling its assets in 2011.

Return on equity

Dell has return on equity 25.4%, which is, less than apple (46.83) it shows that investors will be more interested in apple as compared to dell in 2011

Assets turnover ratio

Dell has less efficient management as it has assets turnover ratio of 0-63 as compare to Apple, which has….....

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"Publicly Financial Analysis Of Dell And Apple" (2012, April 20) Retrieved April 27, 2024, from
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"Publicly Financial Analysis Of Dell And Apple" 20 April 2012. Web.27 April. 2024. <
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Latest Chicago Format (16th edition)

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"Publicly Financial Analysis Of Dell And Apple", 20 April 2012, Accessed.27 April. 2024,
https://www.aceyourpaper.com/essays/publicly-financial-analysis-dell-apple-79383