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Investigation and analyzing the financial condition of Dell Computers Corporation

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Centre for Overseas Academic and Culture Exchanges (COACE)

Tsinghua University

Academic Bridge Program 2009-2010


First Assignment

Investigation and analyzing the financial condition of Dell Computers Corporation

Submitted by

David (Miracle)

Words: 969

Dell Inc. is a multinationalinformation technologycorporation that develops, sells and supports computers and related products and services, as a merchant. Based in Round Rock, Texas, United States, Dell employed more than 76,500 people worldwide as of 2009. Dell is one of the largest technological corporations in the world. (http://en.wikipedia.org/wiki/Dell) How about the financial condition of Dell Company? Is there any financial problem in Dell Company? This essay will Investigate and analyze the financial condition of Dell Computers Corporation. (PS: The unit of all the numbers in the essay is in millions.)


Graph One (http://www.dell.com/content/)

We can see from the Graph One, this is the survey of Dell Computer Company from Jan. 2003 to Jan. 2010. More specifically, the data in the income statement is fluctuation. But overall, the date is ascending from 2003 to 2010. To be more exact, according to the Graph Two, this is a line graph about the revenue of Dell Computer Company from 2003 to 2010. The number of revenue is going up from 2003 to 2010. More specifically, at first in 2003, the number of revenue stands at only 35404. Than the number shoots up over five years, peaking at 61133 in 2008. It is the most excellent performance. From 2008 to 2010, the revenue of Dell Computer Company has a moderate descend. In 2010, the revenue declines to 52902, it has the similarly revenue as 2006.                              image01.png

Graph Two (http://www.dell.com/content/)

According to the data, we can analyze the revenue of Dell Computer Company. From 2003 to 2008, Dell Computer Company has a very successful performance. The revenue was going up during these six years. The reason of the successful performance is the direct selling. There are three advantages of direct selling. A first advantage is the direct selling has a low cost. The company cannot pay for the fee that running the shop. Second, the direct selling can give customers a very good service; customers can book a special and exclusive computers and laptops on the Dell Computer Company by themselves. Third, the direct selling has a very high Efficiency. The company can take out some processes that the traditional selling still need. Because of these three reasons, Dell Computer Company has a very excellent performance. However, from 2008 to 2010, the revenue of Dell Computer Company declined. As we know, there is an international financial crisis during this period of time. It is the direct reason that Dell Computer Company’s performance decline.  

Graph Three (http://www.dell.com/content/)


Then, I will introduce the expenses of Dell Computer Company. As can be seen from the Graph Three, the overall expense is going up and fluctuation. At the beginning, the expenses in 2003 stands at 29055, however, the expense plunged in 2004, reached the bottom at 22892. After one year later, the expenses jumped to the 40190. After that, the expenses of Dell Computer Company still level off at a 40000 to 50000. In 2009, the expense reaches the highest point at 50144. In 2010, the expense is decline, stands at 43641.

According to the information, we can know the expenses of Dell Computer Company. From 2003 to 2004, the expense has a dramatic decrease. The first reason of the dramatic decrease is that the Dell Computer Company has a significant reducing staffs. In this way, Dell Computer Company can reorganize the human resources and save the cost of the revenue. Second, from 2003 to 2004, the component’s cost decline. From that year, Dell has cooperated with AMD, a famous CPU supplier, Dell Computer Company did not depend on the Intel Company, so the cost of component’s cost decline. However, from 2004 to 2005, the expense of Dell Computer Company rapid increase. In 2004, Dell computer Company purchased another computer company, which name is Alienware. For Dell Computer Company, it is a very huge expense in that year. From 2009 to 2010, the expense of Dell Computer Company decline, because of the finance crisis.

Graph Four (http://www.dell.com/content/)


The profit is the most important financial data in a company. At last, I will give some details of Dell Computer Company’s profit. We can see from the Graph Four. The line graph of profit fluctuates very substantially. At the same time, the overall data of profit decrease. At first, the profit in 2003 is only 2122. However, the data of profit is going up from 2003 to 2006. In 2006, the number of profit reach the peak at 3572, this is the best performance during these eight years. From 2006 to 2010, the data of profit decline rapidly. In 2010, the data of profit reach the bottom at 1433. This is the worst performance during these eight years.

       After doing some research, I find that some information about the data of profit fluctuates. From 2006 to 2007, it is the best year of Dell Computer Company. In this period of time, Dell showed many new products, like XPS series. The XPS series helped Dell Computer Company receive lots income. However, Dell Computer Company met the depression, so 2010 is the worst in these eight years.

In conclusion, the Dell Computer Company did not have a very good job in these eight years. The trend of total profit is sinking. It is not a good omen for Dell Computer Company. Even Dell Computer Company meets the depression. The International financial crisisgives Dell Compute Company some disadvantage influence, but Dell Computer Company also needs some innovation and self-examination. In this way, Dell Computer Company could develop very successful.

Reference list:


2. http://www.dell.com/content/

3. http://www.dell.com/downloads/global/corporate/annual/2003_dell_annual.pdf

4. http://www.dell.com/downloads/global/corporate/annual/Dell2004AR.pdf

5. http://www.dell.com/downloads/global/corporate/annual/2005_dell_annual.pdf

6. http://www.dell.com/downloads/global/corporate/annual/2006_dell_annual.pdf

7. http://content.dell.com/us/en/corp/about-dell.aspx?c=us&l=en&s=corp&redirect=1

8. http://content.dell.com/us/en/corp/d/corpcomm/irFY08-in-Review.aspx?c=us&l=en  &s=corp&redirect=1

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