1) Ratio analysis: You want to examine the financial ratios for Dell Incorporated. the ticker symbol for the company (DELL). Now find financial ratios for Dell and the industry and sector averages for each ratio. a. What do TIM and MRQ mean? b. How do Dell’s recent profitability ratios compare to their values over the past five years? To the industry averages? To the sector averages? Which is the better comparison group for Dell: the industry or sector averages? Why? c. In what areas does Dell seem to outperform its competitors based on the financial ratios? Where does Dell seem to lag behind its competitors? d. Dell’s inventory turnover ratio is much larger than that for all comparison groups. Why do you think this is?
2) Locate the most recent annual financial statements for DuPont at www.dupont.com under the “Investors” link. Locate the annual report. Using the growth in sales for the most recent year as the projected sales growth for next year, construct a pro forma income statement and balance sheet. Based on these projections, what are the external funds needed?
3) Using the attached PDF, calculate the ratios listed in the industry table for East Coast Yachts. Compare the performance of East Coast yachts to the industry as per the instructions in question 2.