Dell Case Report

MM-5007

FINANCIAL MANAGEMENT

FINANCIAL PERFORMANCE OF DELL COMPUTER

X-48 – SEPTEMBER 2013

Amalia Desti Arthaningtyas (29112314)

Andini Soraya Pramestika (29112322)

Nahdiyani Hasbi (29112578)

Oky Anderson (29112572)

Ryan Fajar H (29112475)

Wogisagar (29112520)

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MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT

INSTITUT TEKNOLOGI BANDUNG

2013

EXECUTIVE SUMMARY

Dell Computer Corporation has headquarter in Austin, Texas was the world’s number one computer system company. Since being founded 1984, company had grown to more than 34,000 employees with revenue of $31.8 billion. Main competitor of Dell in 2001 were Compaq Computer Corporation, Hewlett-Packard Company, Gateway Incorporated and IBM. In 1999 and 2000, GDP growth of more than five percent. This economic affected the entire economy as consumer confidence and overall spending dropped substantially. The Dell stock was on slide and was currently less than 50 percent of its value from one year ago.

I. Objective

Anya Grand as a Financial Analyst at Dell Computer Corporation was asked to provide analisys and give report about this problem cause. She has to identify whether this stock slide in stock performance was unique to dell or was industry wide.

II. Analysis

The first analysis by collecting and comparing the financial statements (balance sheet, income statement and statement of cash flow). From the balance sheet data, the biggest asset is IBM and Gateway as smallest. In average, total asset these companies increase from 1999 to 2000 except Compaq and HP. For it analysis, Dell in fourth position.

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IBM has the biggest revenue, net income and earning pershare. Gateway has smallest revenue but Compaq has smallest earning pershare. For it analysis, Dell in fourth position.

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Commonly, net cash from operating activities in these companies positive but negative in net cash used in investing activities and net...