Michelle Fleming Dell 1 Dell American multinational computer technology corporation Intense competitive environment Many merges and acquisitions have given competitors advantages Foreign competitors are penetrating free markets Poor economic climate has only slightly negatively affected Dell Government’s focus on electronic waste may affect Dell’s costs Financial Source 3 Consolidated statement of financial position Assets Liabilities & Stockholders’ Equity Financial Source Short Term liquidity HP Financial Source Activity ratios HP Financial Source Financial Leverage HP Financial Source Profitability ratios HP Financial Source 8 Market Ratios HP Financial Source 9 Common-Sized income statement Financial Source 10 Capital structure Long-term borrowing cannot be used to finance operations indefinitely Debt as a proportion of total assets and equity was relatively stable Unpredictable average payment period Increased long-term debt Decreased debt ratio Investors willing to pay more for Dell Increased profitability ratios Dell Strengths Weaknesses Recommend to invest in dell Increased Revenue Assets covering debts Favorable investment potential FIN 306 Individual Project Structured External Assignment Assumption: You are a financial analyst working for a major investment house. You have been given a major corporation (actually it’s your choice*) to analyze for its investment potential *Do NOT choose a financial organization, stay with manufacturing or retail companies that are publicly traded. Assignment: Based on your analysis of the firm’s financial statements and any relevant supplementary information you can obtain about the firm and its operating environment. Consider using ValueLine as one of your sources. Identify areas in which the company is performing well (strengths) and advise your boss of any problem areas (weaknesses). Include in your analysis an assessment of how the firm’s strengths and weaknesses affect its credit worthiness and investment potential. Data: The time period for the analysis should include a minimum of three full years (five is better) plus interim statements for the most recent year. In addition to the financial statements and other material in the annual and/or 10K reports, you should review relevant materials from other sources mentioned in class or found in your text. For comparison data use whomever you consider to be your major competitor. Remember – your must usebothfinancial ratios and a common-sized income statements. Outline: The attached outline is provided for guidance, but the analysis should be adjusted, as appropriate, to conform to the individual characteristics of the firm. Note to students: please remember do not select a financial institution for your company. Suggested Outline for Financial Statement Analysis – PowerPoint Presentation For PowerPoints items in Sections 1 & 2 should be 1 slide each..

1. Michelle Fleming
Dell
1
Dell
American multinational computer technology corporation
Intense competitive environment
Many merges and acquisitions have given competitors
advantages
Foreign competitors are penetrating free markets
Poor economic climate has only slightly negatively affected
Dell
Government’s focus on electronic waste may affect Dell’s costs
Financial Source
3
Consolidated statement of financial position
Assets

2. Liabilities & Stockholders’ Equity
Financial Source
Short Term liquidity
HP Financial Source
Activity ratios
HP Financial Source
Financial Leverage
HP Financial Source
Profitability ratios
HP Financial Source

3. 8
Market Ratios
HP Financial Source
9
Common-Sized income statement
Financial Source
10
Capital structure
Long-term borrowing cannot be used to finance operations
indefinitely
Debt as a proportion of total assets and equity was relatively
stable

4. Unpredictable average payment period
Increased long-term debt
Decreased debt ratio
Investors willing to pay more for Dell
Increased profitability ratios
Dell
Strengths
Weaknesses
Recommend to invest in dell
Increased Revenue
Assets covering debts
Favorable investment potential
FIN 306 Individual Project
Structured External Assignment
Assumption:
You are a financial analyst working for a major investment
house. You have been given a major corporation (actually it’s
your choice*) to analyze for its investment potential

5. *Do NOT choose a financial organization, stay with
manufacturing or retail companies that are publicly traded.
Assignment:
Based on your analysis of the firm’s financial statements and
any relevant supplementary information you can obtain about
the firm and its operating environment. Consider using
ValueLine as one of your sources. Identify areas in which the
company is performing well (strengths) and advise your boss of
any problem areas (weaknesses).
Include in your analysis an assessment of how the firm’s
strengths and weaknesses affect its credit worthiness and
investment potential.
Data:
The time period for the analysis should include a minimum of
three full years (five is better) plus interim statements for the
most recent year. In addition to the financial statements and
other material in the annual and/or 10K reports, you should
review relevant materials from other sources mentioned in class
or found in your text.
For comparison data use whomever you consider to be your
major competitor.
Remember – your must usebothfinancial ratios and a common-
sized income statements.
Outline:
The attached outline is provided for guidance, but the analysis
should be adjusted, as appropriate, to conform to the individual
characteristics of the firm.

6. Note to students: please remember do not select a financial
institution for your company.
Suggested Outline for Financial Statement Analysis –
PowerPoint Presentation
For PowerPoints items in Sections 1 & 2 should be 1 slide each.
For section 3 it’s your call. Cover those important ratios and
significant issues found in the common-sized income statement
and in your analysis of the capital structure of the firm.
Remember however that PowerPoint slides are not meant to be
an eye chart. If you have more than 6 typed lines on one slide –
you needed another slide!
I. Introduction
II. Firm, Industry and Environment (please be brief, this IS a
finance and accounting course not a history class!)
A. Description of firm and its management
B. Discussion of the competitive environment
C. Economic climate and outlook
D. Other factors as appropriate, e.g. governmental regulations,
labor issues, litigation pending
III. Evaluation of Financial Statements (note key word is
“evaluation”)
A. Overview
B. Short-term liquidity
C. Activity Ratios
D. Financial Leverage (Debt Ratios)
E. Profitability and Market Ratios
F. Common-sized Income Statement Analysis
G. Discussion of the Company’s capital structure

7. IV. Outlook, Summary and Conclusions
A. Outlook for performance (investment potential, credit
assessment, etc.)
B. Strengths
C. Weaknesses
D. Summary and Conclusions
IMPORTANT! Be sure to give credit to any source you use.
While this is not an APA exercise, the rules for plagiarism
definitely apply.