Working Capital Financial Ratio

DSI DSO DPO CCC

Q193 40 54 46 48
Q293 44 51 55 40 70
Q393 47 52 51 48
60
Q493 55 54 53 56
Q194 55 58 56 57
50
Q294 41 53 43 51
Q394 33 53 45 41 40
Q494 33 50 42 41
Q195 32 53 45 40 30

Q295 35 49 44 40
20
Q395 35 50 46 39
Q495 32 47 44 35 10
Q196 34 47 42 39
Q296 36 50 43 43 0
Q193 Q293 Q393 Q493
Q396 37 49 43 43
Q496 31 42 33 40

Dell's Financial Ratio Performance

(in millions) 1996 1995 1994

Current Assets 1957 1470 1048
Current Liabilities 939 752 538
Inventory 429 293 220
Pre-Paid Expenses 0 0 0 272
5296
Dell's Revenue and Net Income Performance (Million
Dell's Financial Ratio Performance 0.05135952
$6,000
1996 1995 1994
Current Ratio 2.08 1.95 $5,000 1.95
Quick Ratio 1.63 1.57 1.54
$4,000

$3,000

$2,000

1995 1996 $1,000

Sales $ 3,475 $ 5,296
$-
Net Profit $ 149 $ 272 1995 1996

Sales Net Profit

 $1,000

$-
1995 1996

Sales Net Profit

1.52402878
Stock Equity
(in millions) 1996 1995 Change (Million)
Total Assets $ 2,148 $ 1,594 $ 554 $450
Total Liabilities $ 1,175 $ 942 $ 233 $400
$350
Retained Earning $ 570 $ 311 $ 259
$300
Additional Funds Needed $ 62
$250
$200
$150
$100
1995 1996 $50
Preferred Stocks $ 120 $ 6 $-
Preferred Stocks
Common Stocks $ 242 $ 430
1995
 Dell's Working Capital Financial Ratio
60

50

40

30

20

10

0
93 Q293 Q393 Q493 Q194 Q294 Q394 Q494 Q195 Q295 Q395 Q495 Q196 Q296 Q396 Q496

DSI DSO DPO CCC

Performance (Million)
$300

$250

$200

$150

$100

$50

$-
1996

Net Profit
 $50

$-
1996

Net Profit

Stock Equity Changes

(Million)

Preferred Stocks Common Stocks

1995 1996
 60

50

40

30

20

10

0
Q296 Q396 Q496

4229
93.9777778
8
310 494 Balance Sheet
474 Year Ended
January 29, Weightage to Index
million of dollars 1995 Assets Movement
Current Assets :
Cash 43 2.7% 28%
Short Term Investments 484 30.4% 22%
Accounts Receivables, Net 538 33.8% 35%
Inventories 293 18.4% 46%
Other 112 7.0% 39%
Total Current Assets 1,470 92.2% 33%
Property, Plant & Equipment, Net 117 7.3% 53%
Other 7 0.4% 71%
Total Assets 1,594 100% 35%

Current Liabilities :
Account Payable 403 25.3% 16%
Accrued and Other Liabilities 349 21.9% 36%
Total Current Liabilities 752 47.2% 25%
Long Term Debt 113 7.1% 0%
Other Liabilities 77 4.8% 60%
Total Liabilities 942 59.1% 25%
Stockholders Equity
Preferred Stock 120 7.5% -95%
Common Stock 242 15.2% 78%
Retained Earnings 311 19.5% 83%
Other -21 -1.3% 57%
Total Stockholders Equity 652 40.9% 49%
Total Liabilities + Equity 1,594 100% 35%

Working Capital 471

Additional Funding Sources (X)
Retained Earning (Y)
Common Stocks Funding (Z)
Funding Capability (Y)+(Z)-(X)
Positive Funding Capability means that DELL had sufficient asset to fund their 1996 and 1997 forecaste

Profit & Loss Statements for Dell Computer Corporation (millions of dollars)

Fiscal Year 1995 Weightage to Sales Index

Movement
Sales $ 3,475 100% 52%
Cost of Sales $ 2,737 79% 55%
Gross Margin $ 738 21% 45%
Operating Expenses $ 489 14% 41%
Operating Income $ 249 7% 51%
Financing & Other Income $ (36) -1.0% 117%
Income Taxes $ 64 1.8% 73%
Net Profit $ 149 4.3% 83%
1995 to 1996 Sales increase 52%

Company 1993
Dell Computer 55
vs
Compaq Computer 72
e Sheet
Ended
January 28, Weightage to Projected Index January 28, Weightage to
1996 Assets Movement 1997 Assets

55 2.6% 40% 77 2.6%

591 27.5% 40% 827 27.4%
726 33.8% 47% 1,067 35.4%
429 20.0% 46% 626 20.8%
156 7.3% 39% 217 7.2%
1,957 91.1% 44% 2,815 93.3%
179 8.3% 0% 179 5.9%
12 0.6% 94% 23 0.8%
2,148 100% 40% 3,018 100%

466 21.7% 40% 652 21.6%

473 22.0% 38% 653 21.6%
939 43.7% 25% 1,305 43.3%
113 5.3% 0% 113 3.7%
123 5.7% 40% 172 5.7%
1,175 54.7% 25% 1,590 52.7%

6 0.3% 0% 6 0.2%
430 20.0% 0% 430 14.2%
570 26.5% 83% 1,043 34.6%
-33 -1.5% 57% (52) -1.7%
973 45.3% 49% 1,427 47.3%
2,148 100% 35% 3,018 100%

744 1,118
273 374
311 570
188 -
226 196
96 and 1997 forecasted fiscal sales growth
870 415 473

Forecasted
1996 Weightage to Index 1997 Weightage to
Sales Sales
Movement
 $ 5,296 100% 50% $ 7,944 100%
$ 4,229 80% 50% $ 6,344 80%
$ 1,067 20% 45% $ 1,601 20%
$ 690 13% 50% $ 1,035 13%
$ 377 7% 51% $ 566 7%
$ 6 0.1% 58% $ 9 0.1%
$ 111 2.1% 50% $ 167 2.1%
$ 272 5.1% 83% $ 408 5.1%
ase 52%
1996 to 1997 Sales increase 50%

2928 2148 780 554

1645 1175 470 233
978 570 408 259
-98 62

1994 1995
33 32 Lowest DSI
vs
60 73 Highest DSI
 Balance Sheet
Year Ended

Sales 3,475 100%

January 29,
Weightage
Weightage to Sales
million of dollars 1995 to Assets 1995
Current Assets :
Cash 43 2.7% 1.24%
Short Term Investments 484 30.4% 13.93%
Accounts Receivables, Net 538 33.8% 15.48%
Inventories 293 18.4% 8.43%
Other 112 7.0% 3.22%
Total Current Assets 1,470 92.2% 42.30%
Property, Plant & Equipment, Net 117 7.3% 3.37%
Other 7 0.4% 0.20%
Total Assets 1,594 100% 45.87%
Additional Funds Needed
Current Liabilities :
Account Payable 403 25.3% 11.60%
Accrued and Other Liabilities 349 21.9% 10.04%
Total Current Liabilities 752 47.2% 21.64%
Long Term Debt 113 7.1% 3.25%
Other Liabilities 77 4.8% 2.22%
Total Liabilities 942 59.1% 27.11%
Stockholders Equity
Preferred Stock 120 7.5% 3.45%
Common Stock 242 15.2% 6.96%
Retained Earnings 311 19.5% 8.95%
Other -21 -1.3% -0.60%
Total Stockholders Equity 652 40.9% 18.76%
Total Liabilities + Equity 1,594 100% 45.87%

Balance Sheet
Year Ended
ACTUAL 1996 Performance
Sales 5,296 100%
Weightage
January 28, Weightage to Sales
million of dollars 1996 to Assets 1995
Current Assets :
Cash 55 2.6% 1.04%
Short Term Investments 591 27.5% 11.16%
Accounts Receivables, Net 726 33.8% 13.71%
Inventories 429 20.0% 8.10%
Other 156 7.3% 2.95%
Total Current Assets 1,957 91.1% 36.95%
Property, Plant & Equipment, Net 179 8.3% 3.38%
Other 12 0.6% 0.23%
Total Assets 2,148 100% 40.56%

Current Liabilities :
Account Payable 466 21.7% 8.80%
Accrued and Other Liabilities 473 22.0% 8.93%
Total Current Liabilities 939 43.7% 17.73%
Long Term Debt 113 5.3% 2.13%
Other Liabilities 123 5.7% 2.32%
Total Liabilities 1,175 54.7% 22.19%
Stockholders Equity
Preferred Stock 6 0.3% 0.11%
Common Stock 430 20.0% 8.12%
Retained Earnings 570 26.5% 10.76%
Other -33 -1.5% -0.62%
Total Stockholders Equity 973 45.3% 18.37%
Additional Funds Needed
Total Liabilities + Equity 2,148 100% 40.56%

4229

Balance Sheet
Year Ended

Sales 5,296 100%

Weightage
January 28, Weightage to Sales
million of dollars 1996 to Assets 1995
Current Assets :
 Cash 55 2.6% 1.04%
Short Term Investments 591 27.5% 11.16%
Accounts Receivables, Net 726 33.8% 13.71%
Inventories 429 20.0% 8.10%
Other 156 7.3% 2.95%
Total Current Assets 1,957 91.1% 36.95%
Property, Plant & Equipment, Net 179 8.3% 3.38%
Other 12 0.6% 0.23%
Total Assets 2,148 100% 40.56%
Additional Funds Needed
Current Liabilities :
Account Payable 466 21.7% 8.80%
Accrued and Other Liabilities 473 22.0% 8.93%
Total Current Liabilities 939 43.7% 17.73%
Long Term Debt 113 5.3% 2.13%
Other Liabilities 123 5.7% 2.32%
Total Liabilities 1,175 54.7% 22.19%
Stockholders Equity
Preferred Stock 6 0.3% 0.11%
Common Stock 430 20.0% 8.12%
Retained Earnings 570 26.5% 10.76%
Other -33 -1.5% -0.62%
Total Stockholders Equity 973 45.3% 18.37%
Total Liabilities + Equity 2,148 100% 40.56%
 Balance Sheet
Year Ended
FIXED LIABILITIES PROPORTIONAL LIABILITIES $ 3,475
5,296 100% 5,296 100%
January 28, January 28, $ 5,296
Weightage
to Sales Weightage Weightage to
1996 1996 to Assets 1996 Assets

66 1.24% 3.0% 66 3.0%

484 9.14% 22.2% 484 22.2%
820 15.48% 37.7% 820 37.7%
447 8.43% 20.5% 447 20.5%
171 3.23% 7.9% 171 7.9%
1,987 37.52% 91.3% 1,987 91.3%
178 3.36% 8.2% 178 8.2%
11 0.21% 0.5% 11 0.5%
2,176 41.09% 100% 2,176 100%
355 (139)

403 7.61% 22.1% 614 33.7%

349 6.59% 19.2% 532 29.2%
752 14.20% 41.3% 1,146 62.9%
113 2.13% 6.2% 172 9.5%
77 1.45% 4.2% 117 6.4%
942 17.79% 51.7% 1,436 78.8%

120 2.27% 6.6% 120 6.6%

242 4.57% 13.3% 242 13.3%
538 10.16% 29.5% 538 29.5%
-21 -0.40% -1.2% -21 -1.2%
879 16.60% 48.3% 879 48.3%
1,821 100% 2,315 100%

Balance Sheet
Year Ended
FIXED LIABILITIES CASE FORECAST
5,296 100%
Weightage
January 28, to Sales Weightage Variance
1996 1996 to Assets
 66 1.24% 3.0% (11)
484 9.14% 22.2% 107
820 15.48% 37.7% (94)
447 8.43% 20.5% (18)
171 3.23% 7.9% (15)
1,987 37.52% 91.3% (30)
178 3.36% 8.2% 1
11 0.21% 0.5% 1
2,176 41.09% 100% (28)

403 7.61% 18.5% 63

349 6.59% 16.0% 124
752 14.20% 34.6% 187
113 2.13% 5.2% -
77 1.45% 3.5% 46
942 17.79% 43.3% 233

120 2.27% 5.5% (114)

242 4.57% 11.1% 188
538 10.16% 24.7% 32
-21 -0.40% -1.0% (12)
879 16.60% 40.4% 94
355 16.3%
2,176 34.38% 100% (28)

DSO
DSI
Balance Sheet DPO
Year Ended CCC
FIXED LIABILITIES PROPORTIONAL LIABILITIES
7,944 100% 7,944 100%
Weightage
January 28, to Sales Weightage January 28, Weightage to
1997 1996 to Assets 1997 Assets
 83 1.56% 3.8% 83 3.8% 2,648
591 11.16% 27.2% 591 27.2% 778.51
1,089 20.56% 50.0% 820 37.7%
644 12.15% 29.6% 447 20.5%
234 4.42% 10.8% 171 7.9%
2,640 49.85% 121.3% 2,640 121.3%
269 5.07% 12.3% 269 12.3% 405.14
18 0.34% 0.8% 18 0.8% 373.37
2,927 55.26% 100% 2,927 100%
374 (214)

466 8.80% 25.6% 699 38.4%

473 8.93% 26.0% 710 39.0%
939 17.73% 51.6% 1,409 77.3%
113 2.13% 6.2% 170 9.3%
123 2.32% 6.8% 185 10.1%
1,175 22.19% 64.5% 1,763 96.8%

6 0.11% 0.3% 6 0.3%

430 8.12% 23.6% 430 23.6%
975 18.41% 53.5% 975 53.5%
-33 -0.62% -1.8% -33 -1.8%
1378 26.02% 75.7% 1378 75.7%
2,553 100% 3,141 100%
ACTUAL 1996 FIXED LIABILITIES
Performance CASE FORECAST Delta
50.0 56.5 -6.5
37.0 38.5 -1.5
40.2 34.8 5.4
46.8 60.3 -13.4