Ratio Analysis And Statement Of Cash Flows Paper

1430 words - 6 pages

Dell verses GatewayThe two publicly traded companies chosen were Dell and Gateway. Both of these companies are well known for their technology in the personal computer industry. Based on the ratio analysis and statements of cash flows Dell is doing better in the market than Gateway.Record global product shipments, revenue, operating and net income, earnings per share and cash from operations made Dell's fiscal year 2005 the best reporting period in its history.Dell Inc. (NASDAQ: DELL) a premier provider of products and services for customers worldwide is responsible for building their information-technology and Internet infrastructures. This has enabled the company revenue for the past four quarters to total over $47.3 billion. Dell, through its direct business model, designs, manufactures and customizes products and services to customer requirements, offers an extensive selection of software and peripherals.Worldwide revenue from software and peripheral products increased 37 percent year-over-year. Strong customer demand has the company on track to exceed selling five million printers and generating more than $1 billion in imaging and printing revenue this year. During the third quarter, the company introduced its first generation of color laser printers for business and institutional customers, as well as two new printers with advanced digital photography features for consumers. In Asia-Pacific and Japan (APJ), company-shipment growth of 25 percent was nearly three times the rate of the market excluding Dell. Revenue from enterprise systems, including servers and storage, increased 27 percent.Dell's operating profit improved to 8.8 percent of revenue, the company's highest rate in four years. The company generated a record $1.8 billion in cash from operations, and total cash and investments rose to $12.4 billion. Dell spent $1.3 billion to repurchase 38 million shares of its common stock, bringing total shares repurchased year to date to 97 million-reducing weighted average shares outstanding by almost 3 percent for the year.Dell established an industry record for worldwide shipments, selling a combined eight million standards-based servers, notebook computers and desktop computers in the quarter. The company's shipment growth of 22 percent-highlighted by a 35-percent increase in notebook computer volumes-was double the rate of the industry excluding Dell.Third-quarter shipments in Europe, Middle East and Africa (EMEA) were up 31 percent, a 15-point premium to the rest of the market. Server shipments in the region increased 24 percent, earning Dell nearly two points of server market share for the quarter.Dell revenue increased 18 percent from the same quarter a year ago to $12.5 billion, led by continued strong growth of 27 percent in Europe, Middle East and Africa and 25 percent in Asia-Pacific and Japan. Growth in the United States was led by a 20-percent increase in spending by business customers.Earnings per share were 33 cents, up 27...

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