Dell Computers is one of the world's top PC makers and the world's #1 direct-sale computer vendor. Led by founder Michael Dell -- the longest-tenured CEO of any major US computer company, who owns 12% of his creation -- the company sells hardware and markets third-party software and peripherals. Products include PCs (about 55% of sales), notebooks, and network servers. Government entities, large businesses, and educational institutions buy nearly 60% of its systems. Dell is expanding services such as its Web site (which processes half of the company's transactions), online business consulting, and its Dell Ventures private investment arm.The format of the annual report was very easy to follow. The first couple of pages dealt with the history of the company, while the last few sections dealt with all the numbers. It was very clear and easy to understand. The annual report was very complete in that it gave me all the information I needed to complete the analysis. The annual report was a good way for me to see how the company worked and what they strive for. The annual report also helped me better understand how companies use their money in a fiscal period. AnalysisDebt Paying Ability: The Debt paying ability of the company is the ability for a company to repay all of its debts. The more a company can repay its debts, the more successful the company is. The success of the business determines whether or not creditors will receive the amount promised by the company. When a business fails to repay its creditors, its debt paying ability goes lower while the money owed increases. Who wants to invest in a company that cannot repay its debts. It is like giving someone money who you know will not pay you back. To find out What Dell Computers Debt paying ability, I used its current ratio, , financial leverage, and its total debt to equity ratio. I then compared this to the market rates, and the competing industry rates. This gave ...
