Essay: Financial Position of Dell

Sample Essay

These opportunities if not explored might dethrone the revenues coz of the major threats being posed to the company.

• Reduction in end markets
• Dependence on third parties (DataMonitor, 2009)

Last year financial position of the company stands strong. With the current ratio quick ratio rising upwards, Dell Inc. proves to be capable of extracting a good amount of working capital in order to invest for the betterment of the business. Turnover of receivable is favorable being on the rise and thus proves to be stronger with the maintained receivable days which are merely 10 days on the average. Their inventory accumulation is very good as it is as low as 6.31 percent compared to 8.715 in 2008. (See Appendix 1)

In viewing the data obtained from the ratio and industry analysis, Dell stands out to be a good buy. However, the present monetary slump may alter the striking excellence of the stock as investors go on with their uneasy movement of selling stocks. One end for investors to observe is the money received from in service activities, as Dell does not have to account its operating leases on any monetary declarations; this could perhaps provide an exaggerated vision of operations and compensate any new income produced by the corporation. The current economic situation and the augment in debt funding caused a decline in the assessment of the stock but Dell is certainly balancing its revenues and expenditures in the current market trends, thus causing handling its sales and financing according to current market trends, thus reasoning a reference in buying stock in Dell. Shareholders are recommended to hold their existing stocks of Dell computers as the market is very positive towards Dell company stocks.

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