Part I
Dell RM Analysis
Financial Analysis Company Being Evaluated Competitor #1 Competitor #2 Competitor #3
Dell Compaq Gateway Inc. Apple
Current Period Year-ago Period Year-over-Year Current Period Current Period Current Period
7/28/00 7/30/99 Growth 30-Jun-00 30-Jun-00 7/1/00
Income Statement
Sales 7,670 6,142 24.9% 10,127 2,141 1,825
Cost of Goods Sold 6,036 4,788 26.1% 7,741 1,643 1,282
Net Income 861 724 18.9% 387 121 200
Shares Outstanding 2,596 2,575 0.8%
Balance Sheet
Cash & Equivalents 4,316 4,057 6.4% 2,571 939 3,826
Current Assets 8,318 7,405 12.3% 14,032 2,280 5,157
Short-term Debt 0 0 No Debt 1,111 4 0
Current Liabilities 5,732 4,440 29.1% 12,179 1,582 1,873
Long-term Debt 510 513 -0.6% 0 1 300
Cash Flow Statement
Operating Cash Flow 1,951 1,999 -2.4% (431) 170 668
Capital Expenditures 0 0 N/A (502) (154) (76)
Margins & Ratios . . . Competitors' Average
Gross Margins 21.3% 22.0% -0.7 23.6% 23.3% 29.8% 25.5%
Net Margins 11.2% 11.8% -0.6 3.8% 5.7% 11.0% 6.8%
Cash-to-Debt 8.46 7.91 7.0% 2.31 187.80 12.75 5.18
Net Cash 3806.0 3544.0 7.4% 1460.0 934.0 3526.0 1973.3
Fool Flow Ratio 0.70 0.75 -7.4% 1.04 0.85 0.71 0.87
Cash King Margin 25.4% 32.5% -7.1 0.7% 15.1% 40.8% 18.9%
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Ranking Rule Makers
1) Brand Points (0-1) 3) Financial Direction Points (0-3)
Familiarity 0 Sales Growth 3
Openness 1 Gross Margins 2
Optimism 1 Net Margins 2
Legitimacy 1 Shares Outstanding 2
Inevitability 0 Cash-to-Debt 2
Solitariness 1 Fool Flow Ratio 2
Humor 0 Expansion Potential 3
Subtotal 4 Subtotal 16
2) Financial Location Points (0-2) 4) Monopoly Status Points (0-4)
Mass Market Habit 0 Gross Margins 0
Gross Margins 0 Net Margins 2
Net Margins 2 Net Cash 0
Cash-to-Debt 2 Fool Flow Ratio 2
Fool Flow Ratio 2 Convenience 4
Your Interest 2 Subtotal 8
Subtotal 8
5) Your Enjoyment 1
Total Score 37 Third Tier
