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Return on Investment/Ratio Dell

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Using the attached Dell financial data attached explain why Dell is a good or bad investment based on the ratios and other investment information.

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Solution Summary

This solution provides a financial analysis and assessment of Dell Inc. and determines whether it is a good investment.

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It is better to invest in Dell Inc as the company has reported the profitability position of the company is sound. The net profit margin for the financial year 2011 is 4.3% and the net profit margin of the company has also increased from the last financial year of 2.7%. Furthermore, the gross margin of the company is also showing the increasing trend as the gross margin is 18.5% as against the gross margin of 17.5% which indicates that the manufacturing efficiency of the company is improved from the last year. The operating expenses as a percentage of revenue is 12.9% in the year 2011 and it was 13.4% in the year 2010 and it was 12.7% in the year 2009. This trend shows that even though the ...

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