2. Ratio Analysis You want to examine the financial ratios for Dell Inc. Go to www.reuters.com and type in the ticker symbol for the company (DELL). Now find financial ratios for Dell and the industry...

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2. Ratio Analysis You want to examine the financial ratios for Dell Inc. Go to www.reuters.com and type in 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 TTM 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?

Do problem 2, (calculate the ratios listed in the table) and compare the performance of the company to the MEDIAN industry Ratios.






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2. Ratio Analysis You want to examine the financial ratios for Dell Inc. Go to www.reuters.com and type in 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 TTM 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? Do problem 2, (calculate the ratios listed in the table) and compare the performance of the company to the MEDIAN industry Ratios.



Answered Same DayDec 25, 2021

Answer To: 2. Ratio Analysis You want to examine the financial ratios for Dell Inc. Go to www.reuters.com and...

David answered on Dec 25 2021
100 Votes
2 a) TTM stands for trailing twelve months. This indicates the financial performance of the
compan
y in the recently preceding twelve months and is a good measure of the recent trend
in the company to be compared and contrasted with the industry trends. This need not be a
representation of the fiscal year end of the company. For instance, a company that has its
yearend in December when queried for TTM in July 2016 might display the performance
from August 2015 to July 2016. MRQ signifies most recent quarter, which measures the
performance of a company in the immediately preceding three months irrespective of the
financial / fiscal year that is in operation. For instance in case of a company with quarter
ending March 2016, the MRQ for July 2016 would cover the period May 01, 2016 to July
31, 2016
b) The gross margin of the company based on the last twelve months is at 20.29% which is
marginally higher as...
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