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Dell v Apple: Financial Ratio Comparison

Need assistance with Q 9, 10, 11 and B.3.

Prepare an analysis of the two companies selected ( Apple & Dell). In your analysis evaluate their financial performance using trend and financial ratio analysis, and analyze their most recent statements of cash flows. You may include charts summarizing ratio and cash flow findings but need to analyze and evaluate that data in essay form.

a. Evaluate each firm's financial performance for the two most recent years available by (1) performing financial ratio analysis using the University of Phoenix Microsoft® Excel® Ratio Analysis Worksheet, (2) performing trend analysis on those financial ratios, and (3) comparing and contrasting the findings in essay form. Be sure to include a citation and reference the source of your financial information. A copy of the financial information can be attached, a URL provided, or re-created. Your analysis should include at least eight from the following list:
1) Current ratio
2) Quick ratio
3) Average collection period (days sales outstanding)
4) Inventory turnover ratio (if applicable)
5) Times interest earned
6) Debt-to-equity ratio
7) Net profit margin
8) Return on equity
9) Total asset turnover HELP THIS ONE
10) Return on assets HELP THIS ONE
11) Price-earnings ratio HELP THIS ONE
b. For both of these years and companies:
1) Identify the amount of cash generated or used from each of operating, investing, and financing activities,
2) Identify what business changes occurred altering the company's use of cash from one year to the next
3) Discuss whether or not the company is generating cash in a sustainable manner, HELP THIS ONE
4) Make recommendations as to how the company could better manage its cash flows in the future.

Attachments

Solution Preview

I have attached a formatted MS Excel spread sheet which contains an analysis of the ratios that you requested, the information posted below, as well as reference sources for the cited material.

Question 9: Over the past two years, Dell has done a more effective job of managing it's total asset turnover (ratio) than Apple. During this time period (2006 to 2007), Dell's total asset turnover ratio remained basically stable at 2.240 for 2006 and 2.218 for the fiscal year 2007.
Apple's total asset ratio on the other hand, decreased during it's past two years of operation, from 1.123 in 2006 to 0.947 in 2007. Which means that during the past two years of operation, Dell has bee far more effective at utilizing each dollar of its assets to generate an increased level of sales.

Question 10: Return on assets is an indicator of how ...

Solution Summary

Prepare an analysis of the two companies selected ( Apple & Dell). In your analysis evaluate their financial performance using trend and financial ratio analysis, and analyze their most recent statements of cash flows.

$2.19