dell balance sheet

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INTRODUCTION In 2001, Dell Computer became the world’s largest personal computer vendor, continuing to gain market share and post profits in an industry struggling with slumping sales and billions of dollars in losses. Dell sells 90% of its PCs directly to the final customer, largely bypassing there seller channel that accounts for most of the world’s PC sales. This direct customer relationship is the key to Dell’s business model, and provides distinct advantages over the indirect sales model. Dell’s direct relationship with the customer allows it to tailor its offerings to customer needs, offer add-on products and services, and use the Internet to offer a variety of customer services. In addition, Dell’s PCs are built to customers’ specifications upon receipt of an order, giving Dell additional advantages over indirect PC vendors who must try to forecast demand and ship products based on those forecasts. Dell’s direct sales and

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Page 1: Dell Balance Sheet

INTRODUCTION

In 2001, Dell Computer became the world’s largest personal computer

vendor, continuing to gain market share and post profits in an industry

struggling with slumping sales and billions of dollars in losses. Dell sells

90% of its PCs directly to the final customer, largely bypassing there seller

channel that accounts for most of the world’s PC sales. This direct customer

relationship is the key to Dell’s business model, and provides distinct

advantages over the indirect sales model. Dell’s direct relationship with the

customer allows it to tailor its offerings to customer needs, offer add-on

products and services, and use the Internet to offer a variety of customer

services. In addition, Dell’s PCs are built to customers’ specifications upon

receipt of an order, giving Dell additional advantages over indirect PC

vendors who must try to forecast demand and ship products based on those

forecasts. Dell’s direct sales and build-to-order model has achieved superior

performance in the PC industry in terms of inventory turnover, reduced

overhead, cash conversion, and return on investment.

Dell’s business model is simple in concept, but very complex in

execution. Building PCs to order means that Dell must have parts and

components on hand to build a wide array of possible configurations with

little advance notice. In order to fill orders quickly, Dell must have excellent

manufacturing and logistics capabilities supported by information

LAPTOPS that enable it to substitute information for inventory.

Page 2: Dell Balance Sheet

The demands of Dell’s model have led it to adopt a new

organizational structure referred to as a virtual company or value web

(Figure 1). It is marked by a focus on a few key strategic activities, and

extensive outsourcing of non-strategic activities. Dell works closely with

external partners to produce its PC products and to offer its customers an

array of additional products and services that add value and allow Dell to

capture a larger share of the customer’s IT spending.

To manufacture its products, Dell coordinates a global production

network that spans the Americas, Europe and Asia, combining in-house final

assembly with heavy reliance on outside suppliers and contract

manufacturers.

Manufacturing of printed circuit board assemblies (PCBAs),

subassemblies (box builds), and some final products (mainly notebook PCs)

is handled by contract manufacturers or original design manufacturers such

as SCI, Solectron, Celestica, Hon Hai, Quanta and Arima. Like other PC

makers, Dell relies on outside suppliers for components and peripherals such

as disk drives, CD-ROM drives, semiconductors, add-on cards, monitors,

keyboards, mice and speakers. Its PCs can be bundled with standard

software such as Microsoft Office or with specialized software requested by

corporate customers.

Page 3: Dell Balance Sheet

History :

In 1996, Dell began selling computers via its web site

Introduced the 316LT, the company’s first notebook computer in

1989

Joined the top-five computer Laptop makers worldwide in 1993

Earning appr. $1 million per day 7 months after the launch of

dell.com in 1996

Introduced E-Support, an online tool to provide technical support

to customers 1999

1999, Dell overtook Compaq to become the largest seller of

personal computers in the US

2007, Dell set a goal of becoming the greenest technology

company on Earth for the long term. The company launched a

zero-carbon initiative

For the first time, Dell achieves No. 1 ranking in global market

share in 2001

2003, name was changed to "Dell Inc."

2006, Dell purchased the computer hardware manufacturer

Alienware

Dell Structure :

It conducts operations worldwide, and manages business in three geographic

regions:

Page 4: Dell Balance Sheet

Americas region, based in Round Rock, Texas, covers the U.S.,

Canada, and Latin America. 

Europe, Middle East and Africa (EMEA) region, based in

Bracknell, England, covers Europe, the Middle East, and Africa. 

Asia Pacific-Japan (APJ), based in Singapore, covers the Asian

countries of the Pacific Rim as well as Australia, New Zealand,

and India.

Major customers:

large corporations,

government agencies

medical and educational institutions

small business

individuals

Page 5: Dell Balance Sheet

PRODUCT PROFILE

Dell Studio 14z

Price Rs 35,000/- INR Key Specs:

Processor: 2.4GHz Intel Core 2 Duo P8600Memory: 3GB RAMStorage: 320GB hard driveOptical Drive: None (optional)Screen: 14 inches (1,366x768 native resolution)Graphics: Nvidia GeForce 9400M G (256MB)Weight: 4.85 pounds (with eight-cell battery, as tested)Dimensions (HWD): 0.8x13.2x9 inchesOperating System: Windows Vista Home Premium Edition (64-bit)

Page 6: Dell Balance Sheet

Dell Inspiron 1420 Laptop

Price Rs 32,500/- INR Key Specs:

Processor: 2GHz Core 2 Duo T7300Memory: 2GB DDR2Storage: 160GB hard driveOptical Drives: 8x DVD±RWDisplay: 14.1-inch TFTGraphics: nVidia GeForce Go 8400 GS (128MB)Operating System: Windows Vista Home Premium

Page 7: Dell Balance Sheet

Dell Inspiron Mini 10 with TV Tuner

Price Rs 30,750/- INR

Key Specs:

Processor: 1.6GHz Intel Atom Z530Memory: 1GB RAMStorage: 160GB hard driveOptical Drive: NoneScreen: 10.1 inches (1,024x600 native resolution)Graphics: Integrated Intel GMA 500Weight: 2.9 pounds Dimensions (HWD): 1.3x10.3x7.2 inchesOperating System: Windows XP Home Edition (32-bit)

Page 8: Dell Balance Sheet

Dell XPS M1330 Laptop

Price Rs 28,000/- INR Key Specs:

Processor: 2.2GHz Core 2 Duo T7500Memory: 2GB DDR2Storage: 160GB hard driveOptical Drives: Double-layer DVD±RWDisplay: 13.3-inch wide-screen TFTGraphics: nVidia GeForce Go 8400 GS (128MB)Operating System: Microsoft Windows Vista Home Premium

Page 9: Dell Balance Sheet

Dell Inspiron 1501

Price Rs 27,000/- INR Key Specs:

Processor: 1.6GHz Turion 64 X2 TL-50Memory: 2GB DDR2Storage: 60GB hard driveOptical Drives: Double-layer DVD±RWDisplay: 15.4-inch TFTGraphics: Integrated ATI Radeon Xpress 1150Operating System: Windows Vista Home Premium

Page 10: Dell Balance Sheet

SUGGESTIONS

The following are the suggestions given by the consumers at the time of

the survey conducted.

1. The Dell should improve its quality.

2. The Dell should reduce its prices.

3. The Dell should improve its post sale services.

4. The Dell should maintain its Brand image.

5. The Dell should improve its Sales promotional activities.

6. The Dell should launch a new model of product at regular

intervals.

7. DELL Company should follow the promotional activities more

like offers which generally increase the sales.

8. The company and its dealers should increase the attachments with

the customers.

Page 11: Dell Balance Sheet

Laptop displaymatrix

The aims for which you are buying a laptop, will strongly affect the choice

of the laptop. It is more comfortable to work with a large display, but

compactness and small weight have their advantages.A laptop with 17 and

15,4 display diagonal can be used for the playing games as well as for office

for office work

Laptop processor

Processor is one of the main part of every

computer, including a laptop. When you

are going to buy a laptop, the main

indicator for you will be CPU clock.

Besides, here there are some details

connected to energy

consumption and heat generating

Motherboard

It is important that the motherboard

has an additional slot (one or

two) for the RAM increase Every

producer tries to decrease the

dimensions and the weight of the

laptop, that’s why every model

has a special motherboard. There

is no possibility to change it

during the upgrading

Laptop HDD

Page 12: Dell Balance Sheet

HDD in the laptop, as well as in the PC is a main information carrier. The

capacity of HDD depends on the aims imposed on the laptop. You can buy a

laptop with HDDfrom40 to 200GB. Of course the price of the laptop will

depend on the HDD parameters

RAM

Minimal RAM capacity of the laptop necessary for its work is 256 MB. If

you are going to work with resource-intensive facilities, then you should buy

a laptop with RAM from 512MB. As well as on the PC, if the RAM is not

enough, the part of the data will be transferred to the hard disk. It will

decrease the working speed and will heighten the energy consumption. The

necessity of RAM extension should influence the choice of the laptop.

Laptop graphics card

You cannot choose a laptop graphics card. You can buy a laptop only with

an installed graphics card. Originally, producers didn’t pay a lot of attention

to this parameter, because laptop was created for office work. Nowadays,

when the users have more needs, you can buy a laptop with a powerful

graphics card with its own memory up to 256MB

Laptop sound card Laptop sound card is usually built-in and has

all the necessary facilities. Built-in AC’97 codec is enough for audio files

reproduction. Laptop often

has a built-in acoustics. These speakers are not very powerful, so if you

want to have a more qualitative sound, you should buy additional speakers.

The sound card should have and audio input.

Keyboard and laptop positioner

Laptop keyboard

differs from the standard one. Keys can have

unusual sizes and arrangement. Usually part of

Page 13: Dell Balance Sheet

the keyboard with letters is full-size, and other functional keys are smaller

and are arranged differently.

Netcard, modem, Wi-Fi module

Communication facilities are very important for everyone who is going to

buy a laptop. That’s why modern models usually have a modem (standard

V.90/V.92, 56k). Ethernet 10/100 Mb/sec netcard is built-in. Ethernet

(Wi-Fi) standard 802.11 b/g is becoming more and more popular. It isn’t a

problem to buy a laptop with Wi-Fi module nowadays. Many modules are

equipped with it.

Laptop inputs/outputs

Inputs and outputs create additional

connecting possibilities.

First of all, it’s a USB-port, with a help

of which you can connect to various

devices.

Page 14: Dell Balance Sheet

Dell Inc. (DELL)

-NasdaqGS

9.72 0.01(0.10%) 4:00PM EST|After Hours : 9.73 0.01 (0.10%) 5:27PM EST

Income Statement

Get Income Statement for:

View: Annual Data | Quarterly Data All numbers in thousands

Period Ending Feb 3, 2012 Jan 28, 2011 Jan 29, 2010

Total Revenue 62,071,000   61,494,000   52,902,000  

Cost of Revenue 48,260,000   50,098,000   43,641,000  

Gross Profit 13,811,000   11,396,000   9,261,000  

Operating Expenses

Research Development 856,000   661,000   624,000  

Selling General and Administrative 8,524,000   7,302,000   6,465,000  

Non Recurring -   -   -  

Others -   -   -  

Total Operating Expenses -   -   -  

Operating Income or Loss 4,431,000   3,433,000   2,172,000  

Page 15: Dell Balance Sheet

Income from Continuing Operations

Total Other Income/Expenses Net -   -   -  

Earnings Before Interest And Taxes 4,431,000   3,433,000   2,172,000  

Interest Expense 191,000   83,000   148,000  

Income Before Tax 4,240,000   3,350,000   2,024,000  

Income Tax Expense 748,000   715,000   591,000  

Minority Interest -   -   -  

Net Income From Continuing Ops 3,492,000   2,635,000   1,433,000  

Non-recurring Events

Discontinued Operations -   -   -  

Extraordinary Items -   -   -  

Effect Of Accounting Changes -   -   -  

Other Items -   -   -  

Net Income 3,492,000   2,635,000   1,433,000  

Preferred Stock And Other Adjustments -   -   -  

Net Income Applicable To Common Shares 3,492,000   2,635,000   1,433,000  

Currency in USD.

Page 16: Dell Balance Sheet

Balance Sheet

Get Balance Sheet for:

View: Annual Data | Quarterly Data All numbers in thousands

Period Ending Feb 2, 2012 Jan 27, 2011 Jan 28, 2010

Assets

Current Assets

Cash And Cash Equivalents 13,852,000   13,913,000   10,635,000  

Short Term Investments 966,000   452,000   373,000  

Net Receivables 9,803,000   10,136,000   8,543,000  

Inventory 1,404,000   1,301,000   1,051,000  

Other Current Assets 3,423,000   3,219,000   3,643,000  

Total Current Assets 29,448,000   29,021,000   24,245,000  

Long Term Investments 4,776,000   1,503,000   1,113,000  

Property Plant and Equipment 2,124,000   1,953,000   2,181,000  

Goodwill 5,838,000   4,365,000   4,074,000  

Intangible Assets 1,857,000   1,495,000   1,694,000  

Accumulated Amortization -   -   -  

Other Assets 490,000   262,000   345,000  

Deferred Long Term Asset Charges -   -   -  

Total Assets 44,533,000   38,599,000   33,652,000  

Page 17: Dell Balance Sheet

Liabilities

Current Liabilities

Accounts Payable 15,590,000   15,474,000   15,257,000  

Short/Current Long Term Debt 2,867,000   851,000   663,000  

Other Current Liabilities 3,544,000   3,158,000   3,040,000  

Total Current Liabilities 22,001,000   19,483,000   18,960,000  

Long Term Debt 6,387,000   5,146,000   3,417,000  

Other Liabilities 3,392,000   2,686,000   2,605,000  

Deferred Long Term Liability Charges 3,836,000   3,518,000   3,029,000  

Minority Interest -   -   -  

Negative Goodwill -   -   -  

Total Liabilities 35,616,000   30,833,000   28,011,000  

Stockholders' Equity

Misc Stocks Options Warrants -   -   -  

Redeemable Preferred Stock -   -   -  

Preferred Stock -   -   -  

Common Stock 12,187,000   11,797,000   11,472,000  

Retained Earnings 28,236,000   24,744,000   22,110,000  

Treasury Stock (31,445,000) (28,704,000) (27,904,000)

Capital Surplus -   -   -  

Other Stockholder Equity (61,000) (71,000) (37,000)

Total Stockholder Equity 8,917,000   7,766,000   5,641,000  

Net Tangible Assets 1,222,000   1,906,000   (127,000)

Currency in USD.

Page 18: Dell Balance Sheet

CONCLUSTION

It is found that most of the consumers are purchasing through cash basis

It is found that most of consumers are very much satisfied with the quality of

Dell.It is found that the influencing factor for the consumers to purchase

Dell is through Advertisements.The survey indicates that majority of the

consumer wants to suggest Dell to others . The advertisements of Dell are

excellent. The opinion of the consumer about the after sales services of Dell

is good.The sales promotional activities of Dell are good and further can be

improved and maintained longer to capture more market share.It is found

that most of the consumers need more colourful LAPTOPS.