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    Dell Inc. - Financial Ratio Calculations

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    I need to add a "financial analysis" of liquidity and profit ability ratios to my final (about DELL Inc.)- Could you help me with this?

    © BrainMass Inc. brainmass.com October 9, 2019, 6:32 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/dell-inc-financial-ratio-calculations-90689

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    Liquidity Ratios:

    Working capital

    working capital is current assets minus current liabilities

    For the year 2005 working capital = 17,706,000 - 15,927,000 = 1,779,000

    For the year 2004 working capital = 16,897,000 - 14,136,000 = 2,761,000

    Current ratio

    For the year 2005 current ratio = current assets/current liabilities
    = 17,706,000/15,927,000
    = 1.11

    For the year 2004 current ratio = current assets/current liabilities
    = 16,897,000/14,136,000
    = 1.20

    Profitability Ratios:

    Profit margin
    Asset turnover
    Return on assets
    Debt to equity ratio
    Return on equity

    For the year 2005

    Profit margin = Net Income/Net Sales
    = 3,572,000/55,980,000
    = 0.0638

    Asset turnover = Net Sales/Total Average Assets
    = 55,980,000/[(23,109,000 + 23,215,000)/2]
    = 2.42

    Return on assets = Net Income/Total Average Assets
    = 3,572,000/[(23,109,000 + 23,215,000)/2]
    = 0.15

    Debt to equity ratio = Total Liabilities/Owner Equity
    = 18,980,000/4,129,000
    = 4.60

    Return on equity = Net Income/Average Owner Equity
    = 3,572,000/[(4,129,000 + 6,485,000)/2]
    = 0.67

    For the year 2004

    Profit margin = Net Income/Net Sales
    = 3,043,000/49,205,000
    = 0.0618

    Asset turnover = Net Sales/Total Average Assets
    = 49,205,000/[(23,215,000 + 19,311,000)/2]
    = 2.31

    Return on assets = Net Income/Total Average Assets
    = 3,043,000/[(23,215,000 + 19,311,000)/2]
    = 0.14

    Debt to equity ratio = Total Liabilities/Owner Equity
    = 16,730,000/6,485,000
    = 2.58

    Return on equity = Net Income/Average Owner Equity
    = 3,043,000/[(6,485,000 + 6,280,000)/2]
    = 0.48

    Year 2005 Year 2004

    working capital 1,779,000 2,761,000
    current ratio 1.11 1.20
    Profit margin 0.0638 0.0618
    Asset turnover 2.42 2.31
    Return on assets 0.15 0.14
    Debt to equity ratio 4.60 2.58
    Return on equity 0.67 0.48

    From the ...

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