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Finance Case

Essay by   •  April 12, 2013  •  Essay  •  774 Words (4 Pages)  •  1,118 Views

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The financial statement is there to show people records of financial activities that a company has done and can help investors decide if they should keep their money in that company or if they should take it out or if people should invest. The financial statement is there so that anyone including people that have now knowledge of accounting, finance, etc. to be able to read and understand all the information that is provided by the statement itself. I feel that the three strengths of a financial statement is it gives the owners of said company and managers of said company the ability to better understand the finances of the company and also the financial position of that company that they work for, this also allows people the ability to evaluate the past financial position of the company and department as well as future financial performances. This statement also helps to give individuals an actual visual picture of the company's financial health and wellbeing which will be the base of the owners and managers decision making process. This information is very important to what may happen with the success of a company and it continuing in this direction. Another advantage of financial statements is that employees can use this information when dealing with their benefits as well as dealing with their union and trying to barter with management for such things as promotions.

The weaknesses of the financial statement is an advantage and a weakness and that is that it gives the public a clear picture and understanding of the company's financial position no matter if it is good or bad. It also gives out a lot more of the company's information than the company itself would actually like to share. The company can also hide items within the financial statement giving the company a little part of privacy, thus, making it hard to comprehend the information that was given to the public.

I decided to pick Dell Inc., since I live right next to the Silicon Valley and know people that have worked for the company. Dell Inc. is one of the leading companies in the world providing the technology solution in the information technology (IT) industry. The company designs, develops, manufactures, markets, sells, and supports mobility products, including laptops, netbooks, tablets, and Smartphone's; desktops PCs; and servers and networking products.

Dell Inc.

Period Ending January 28, 2011 January 29, 2010 January 30, 2009

Net profit margin 4.29% 2.71% 4.06%

Debt to Total Assets 15.54% 12.12% 7.59%

Debt to Equity 0.77 0.72 0.47

Net

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