me the conclusion that Dell is a company that is well suited for its Debt Paying abilities.Financial RatiosCompanyIndustryMarketCurrent Ratio Current assets/ Current liabilities1.801.641.41Leverage Ratio Total Assets/ Stock Holders Equity2.692.135.28Total Debt/Equity 0.180.081.34Organizations Profitability: To determine Dells profitability I used these ratios: Gross Profit Margin, Net Profit Margin, Return on Equity, and Return on Assets. Profitability depends on the companys success in selling its products and controlling its costs. By computing these ratios I was able to determine that Dell is a profitable company in that it better suited than its competing market, and industries. Its return on equity really caught my eye at a whooping 56%. This compared to the industry and market values shows that Dell is a very profitable company.Profitability RatiosCompanyIndustry1Market2Gross Profit Margin Net income/operating Revenue22.85%25.35%46.19%Net Profit Margin Net income/operating expenses8.00%(0.15%)5.39%Return on Equity net income/ stockholders eq56.4%--13.7%Return on Assets Net Income/ total Assets21.0%(0.3%)2.6%Operational Efficiency: The operation efficiency of a company determines how can company can use its money to create products from raw materials. Operation efficiency also determines how the company can use resources to design, produce, distribute, and market goods and services. To create profits a company must use it assets effectively to create and sell products demanded by customers. It must also operate efficiently so that revenues exceeds expenses. The following ratios helped me determine the operation efficiency of Dell Computers. I also took the average of the industry and market competition. Operating RatiosCompanyIndustry1Market2Inventory Turnover cost of goods sold/ inventory56.422.58.3Asset Turn...
