Exhibit 1 Dell's annual worldwide sales dollar growth vs industry Table A Days Supply of Inventor

Calender year Della Industry DIH

1991 63% -2% Dell
1992 126% 7% Apple
1993 43% 15% Compaq
1994 21% 37% IBM
1995 52% 31%
Source: Dell Computer Corporation Fiscal 1996 Annual report
a
Dell's fiscal year closest in alignment to calender year stated

Exhibit 2 Working Capital Financial Ratios for Dell

DSIa DSOb DPOc CCCd

Q193 40 54 46 48
Q293 44 51 55 40
Q393 47 52 51 48
Q493 55 54 53 56
Q194 55 58 56 57
Q294 41 53 43 51
Q394 33 53 45 41
Q494 33 50 42 41
Q195 32 53 45 40
Q295 35 49 44 40
Q395 35 50 46 39
Q495 32 47 44 35
Q196 34 47 42 39
Q296 36 50 43 43
Q396 37 49 43 43
Q496 31 42 33 40
Source: Dell Computer Corporation fiscal 1993-1996 annual and quarterly reports
a
DSI (Days sales of Inventory) = Net Inventory / (Quarterly COGS / 90)
b
DSO (Days sales outstanding) = Net Accounts Receivables / (Quarterly Sales / 90)
c
DPO (Days Payables Outstanding) = Accounts Payables / (Quarterly COGS / 90)
d
CCC (Cash Conversion Cycle) = DSI + DSO - DPO

Exhibit 3 Percent of Dell Computer Systems Sales by Microprocessor

FY94 FY95 FY96

386 models 7% 0% 0%
486 models 92% 71% 25%
Pentium models 1% 29% 75%
Source: Dell Computer Corporation Fiscal 1994-96 Annual Reports
able A Days Supply of Inventory (DSI)

1993 1994 1995

55 33 32
52 85 54
72 60 73
64 57 48
 Figures in USD Million

Fiscal year 1997 1996 1995 1994

Sales 7944 5296 3475 2873
Cost of Sales 6344 4229 2737 2440
Gross Margin 1601 1067 738 433
% Gross Margin 21% 20% 21% 15%
Operating Expenses 1035 690 489 472
Operating Income 566 377 249 -39
Financing & Other
9 6 -36 0
income
EBIT 575 383 213 -39
% Tax 29% 29% 30% 8%
Income Taxes 167 111 64 -3
Net Profit 408 272 149 -36
PAT% 5.14% 5.14% 4.29% -1.25%

Sales Growth YoY 50.0% 52.4% 21.0% 42.7%

 1993 1992
2014 890
1565 608
449 282
22% 32%
310 215
139 67
4 7
143 74
29% 31%
41 23
102 51
5.06% 5.73%

126.3%
All Figures in USD Million
1997 Growth Rate

1997 1996

Projected @1996 Actual

Projected
Sales

Current Assets:
Cash 83 66
Short Term Investments 591 484
Accounts Receivables, net 1089 820
Inventories 644 447
Other 234 171
Total Current Assets 2640 1987
P P & E, net 269 178
Other 18 11
Total Assets 2927 2176

Accounts Payable 699 614

Accrued and other Liabilities 710 532
Total Current Liabilities 1409 1146
Long Term Debt 113 113
Other Liabilities 185 117
External Fund Needed(EFR) -161 -80
Total Liabilities 1706 1376

Shareholders' Equity:
Preferred Stock (Note a) 6 120
Common Stock (Note a) 430 242
Retained Earnings 978 538
Other -33 -21
Total Stockholders' Equity 1381 879

Analysis

Projected

1997
Total Assets 2927
Operating Assets 2336
ST Investments 591
Total Liabilities 1409
 Operating Liabilities 1706
Total Equity 1381
Funds (Debt+ Equity) 3087
Long Term Debt -48

1996 Fund Strategy

1996
Operating Assets/Sales 29%

Note: Sufficient Funds already available

Notes
1. Sufficient Funds Available to Finance increase in Operating Assets and
2. Sufficient Funds Available to Finance increase in Operating Assets and
3. Sufficient Funds Available to Finance increase in Operating Assets and
 50%

1996 1995

Actual B/S Projected Actual B/S

Actual B/S Variance Ratio(of @1995 Actual Actual B/S Ratio(of Variance
Sales) Sales Sales)

55 -11 1% 4 43 1% 39
591 107 11% 334 484 14% -484
726 -94 14% 497 538 15% -538
429 -18 8% 266 293 8% -293
156 -15 3% 97 112 3% -112
1957 -30 37% 1198 1470 42% -1470
179 1 3% 105 117 3% -117
12 1 0% 6 7 0% -7
2148 -28 41% 1309 1594 46% -1594

466 -148 9% 342 403 12% -403

473 -59 9% 309 349 10% -349
939 -207 18% 651 752 22% -752
113 0 2% 100 113 3% -113
123 6 2% 37 77 2% -77
6
1175 -201 22% 788 942 27% -942

6 -114 0% 0 120 3% -120

430 188 8% 324 242 7% -242
570 32 11% 214 311 9% -311
-33 -12 -1% -23 -21 -1% 21
973 94 18% 515 652 19% -652

1997 proj vs. 1996 proj vs.

1996 actual 1995 actual
Actual Projected Actual Projected Actual

1996 1996 1995 1995 1994

2148 2176 1594 554 1140 779 582
1557 1692 1110 447 806 779 582
484 591 334 484 334 107 257
939 1146 651 651 538 470 495
 1175 1376 942 788 669 531 434
973 879 652 515 471 408 227
2148 2256 1594 1303 1140 939 662
113 33 113 106 100 -161 -80

Cash Operating Increase in Total

Savings in Asset Spontaneous Total Profit Internal
1995 % Increase 1996 Savings Liabilities Increase Funds
32% 3% 134.67 447 233 272 505

increase in Operating Assets and Short Term Investment in 1995. So Business is very efficient in WC management. So No External Invest
increase in Operating Assets and Short Term Investment in 1996. So Business is very efficient in WC management. So No External Invest
increase in Operating Assets and Short Term Investment in 1997. So Business is very efficient in WC management. So No External Invest
 1994

%
Actual B/S Ratio(of Assumptions for Projections
Sales)

3 0% B/S projection as a % of Sales

334 12% B/S projection as a % of Sales
411 14% ST investment to remain same
220 8% B/S projection as a % of Sales
80 3% B/S projection as a % of Sales
1048 36%
87 3% B/S projection as a % of Sales
5 0% B/S projection as a % of Sales
1140 40%

283 10% B/S projection as a % of Sales

255 9% B/S projection as a % of Sales
538 19%
100 3% LT Debt to remain same
31 1% B/S projection as a % of Sales
0
669 23%

0 0% No change
324 11% No change
171 6% Retained Earnings+ Net Profit Projected
-23 -1% No change
471 16%

1995 proj vs.

1994 actual

Note

454
304
0
113
 273
137
410 Funds needed to Finance increase in Operating Assets+ ST investments
7

ement. So No External Investment Required

ement. So No External Investment Required
ement. So No External Investment Required
Fiscal year 1997 1996 1995 1994
NOPAT 402 268 174 -36
Debt 113 113 113 100
Equity 1381 973 652 471
Total Invester supplied capital 1494 1086 765 571
ROIC 31% 29% 26% -6%
NOWC 927 618 459 268
Total Net Operating Capital 1196 797 576 355
WACC(assumed) 10% 10% 10% 10%
EVA 282 188 117 -72
Inventory Turnover Ratio 11.83 11.71 10.67 8.33
Asset Turnover Ratio 2.71 2.47 2.18 2.52
Current Ratio 90% 91% 92% 92%
Quick Ratio 60% 64% 67% 66%
ROE 42% 42% 32% 22%
Average DSO 50 49 49.75 53.50
Average DPO 32.1 47 44.75 46.5
Average DSI 30.9 34.5 33.5 40.5
 Table A Days Supply of Inventory (DSI) Figures in USD Million

DIH 1993 1994 1995

Dell 55 33 32
Apple 52 85 54
Compaq 72 60 73
IBM 64 57 48

Fiscal year 1994 1995

Sales 2873 3475
Cost of Sales 2440 2737

Average Inventory 224 243

Assuming Same COS for Compaq

Average Inventory 401 555
Difference of Inventory vis-a-vis Dell 177 312

Assuming Same COS for Apple

Average Inventory 568 405
Difference of Inventory vis-a-vis Dell 391 93

So Reduced Obsocelence and Risk of Inventory

Low component inventory reduces obsolescence risk and lowers inventory cost.
Value of inventory reduces 30% p.a.

Risk of
1994 1995 Obscelence@30%
Dell 11% 9% 3%
Apple 16% 20% 6%
Compaq 23% 15% 4%
IBM
n USD Million

DSI(Dell)/DSI(Competition) Note
1.0
1.7
2.3 Competition maintains twice the inventory
1.5

Differential Profit of Dell vs

Competition(in USD Mn)

92
47