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Financial Analysis

2148 words - 9 pages

International Financial Markets Assignment 1

Kimberly Parks

Strayer University

Dr William James

July 20, 2012

Provide a detailed overview of a U. S. publicly traded company
Dell, Inc. is a renowned corporation in Information and Technology industry. It is headquartered in Round Rock, Texas in the United States (Van Horne, 2010). It is involved in developing and selling of computers and other computer related products and services. The company bears the name of its founder, Michael Saul Dell. It is one of the largest technological firms in the world. It has a workforce of over 100,000 employees worldwide.
Before Dell moved to Round rock it had its main ...view middle of the document...

Dell has notably has widened its customer base since its inauguration through acquisitions and going for mergers with other companies including Perot Systems and Alien ware. Dell main activities involve selling computers, network switches, servers, data storage devices, software, and computer peripherals. The company is also known for its innovations in delivery administration and electronic commerce.
Some of the available outlets in the United States are located in North Carolina, Eden Prairie, Minnesota, Miami, Florida Austin, UK; Manila, Philippines; Chennai, India; Hortolandia, Brazil; Bratislava, Texas; Nashua, New Hampshire, Nashville, Tennessee, Oklahoma City, Oklahoma; Peoria, Illinois, Winston-Salem. Dell has other outlets located abroad which include Penang, Malaysia; Xiamen, China; Bracknell, Slovakia; Lods, Poland and Limerick, Ireland. The US and India are the only countries which have all of Dell's business functions and provide support globally, Research and Development, manufacturing, finance, analysis and customer care.
Here are some of the financial statements for Dell Inc. that gives a representation of its performance for the years 2010 and 2012. The statements show that the company has had great performance which is quite evident in its Income statement (Appendix I) and the Statement of financial position (Appendix II) shows a positive outlook for Dell in terms of cash flows and the profit margins.
An economic recession occurs when an economy experiences a slow growth. This is attributable to a decline in consumer demand, thus resulting to a drop in sales. A drop in consumer demand is may also be caused by various factors but the most common factors being increase in prices that may be due to an inflationary effect. Buyers of goods tend to be very much sensitive to price changes, this is because they will always fill the pinch whenever they spend more on a good thus opt to go for other less costly or cost saving goods.
Evaluate the company’s vulnerability to current financial threats such as a recession, higher interest rates, and global competition
When there is a decrease in sales businesses stop expanding. Soon afterwards, they stop hiring new workers so as to try and reduce their running costs. By this time, the recession is usually in progress. However, it doesn't affect most people until layoffs begin. When the level of unemployment forms an upward trend as the level of consumer purchases depreciates the pricing of houses also form a downward trend. An example of such a situation was witnessed in the US in the year 2007, when the GDP slowed in the fourth quarter, employment declined leading to an increase in unemployment, housing prices also fell by 10% and also business orders declined.
For Dell, recession has had a great impact on its rate of returns as they have had to put in some drastic measures so as to ensure that they try curbing the situation when it occurs.
Though recession is renowned to cure...

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