Analysis of liquidity and profitability measures of Dell Inc. The following data...

Analysis of liquidity and profitability measures of Dell Inc. The following data (amounts in millions) are taken from the February 3, 2012, and January 28, 2011, comparative financial statements of Dell Inc., a direct marketer and distributor of personal computers PCs) and PC-related products:

At January 30, 2010, total assets were $33,652 and total stockholders’ equity was $5,641.

a. Calculate Dell, Inc.’s, working capital, current ratio, and acid-test ratio at February 3, 2012, and January 28, 2011. Round your ratio answers to two decimal places.

b. Calculate Dell’s ROE for the years ended February 3, 2012, and January 28, 2011. Round your ratio answers to two decimal places, and your percentage answers to one decimal place.

c. Calculate Dell’s ROI, showing margin and turnover, for the years ended February 3, 2012, and January 28, 2011. Round your ratio answers to two decimal places and your percentage answers to one decimal place.

d. Evaluate the company’s overall liquidity and profitability.

e. Dell, Inc., did not declare or pay any dividends during the years ended February 3, 2012, or January 28, 2011. What do you suppose is the primary reason for this?

Optional continuation of Case 3.25—trend analysis

The following historical data were derived from Dell, Inc.’s, consolidated financial statements (in millions):

Note: Past data are not necessarily indicative of the results of future operations.

f. Are the trends expressed in these data generally consistent with each other?

g. In your opinion, which of these trends would be most meaningful to a potential investor in common stock of Dell, Inc.? Which trend would be least meaningful?

h. What other data (trend or otherwise) would you like to have access to before making an investment in Dell, Inc.?