Revenue and Dell
4. Is Dell’s strategy working? What is your assessment of the financial performance that Dell’s strategy has delivered during fiscal years 2000-2008? Use the financial ratios presented in the Appendix of the text (pages 240-241) as a basis for doing your calculations and drawing conclusions about Dell’s performance.
Selected Financial Statement Data for Dell Inc., Fiscal Years 2000 – 2008 (in million, except per share data)
| February 1, 2008 | February 2, 2007 | February 3, 2006 | January 28, 2005 | January 30, 2004 | February 1, 2002 | January 28, 2000 | Results of Operations | | | | | | | | Net Revenue | 61,133 | 57,420 | 55,788 | 49,121 | 41,327 | 31,168 | 25,265 | Cost of Revenue | 49,462 | 47,904 | 45,897 | 40,103 | 33,764 | 25,661 | 20,047 | Gross Margin | 11,671 | 9,516 | 9,891 | 9,018 | 7,563 | 5,507 | 5,218 | Gross Profit Margin | 19.1% | 16.6% | 17.7% | 18.4% | 18.3% | 17.7% | 20.7% | Operating Expenses | | | | | | | | + Selling, general and administrative | 7,538 | 5,948 | 5,051 | 4,352 | 3,604 | 2,784 | 2,387 | + Research, development and engineering | 693 | 498 | 458 | 460 | 434 | 452 | 374 | + Special charges | - | - | - | - | - | 482 | 194 | Total operating expenses | 8,231 | 6,446 | 5,509 | 4,812 | 4,038 | 3,718 | 2,955 | Total operating expenses as a % of net revenues | 13.5% | 11.2% | 9.9% | 9.8% | 9.8% | 10.4% | 10.9% | Operating Income | 3,440 | 3,070 | 4,382 | 4,206 | 3,525 | 1,789 | 2,263 | Operating profit margin | 5.6% | 5.3% | 7.9% | 8.6% | 8.5% | 5.7% | 9.0% | Investment and other income (loss), net | 387 | 275 | 226 | 197 | 186 | (58) | 188 | Income before income taxes extraordinary loss, and cumulative effect of change in accounting principle | 3,827 | 3,345 | 4,608 | 4,403 | 3,711 | 1,731 | 2,451 | Provision for income taxes | 880 | 762 | 1,006 | 1,385 | 1,086 | 485 | 785 | Net Income | 2,947 | 2,583 | 3,602 | 3,018 | 2,625 | 1,246 | 1,666 | Net profit margin | 4.8% |
Selected Financial Statement Data for Dell Inc., Fiscal Years 2000 – 2008 (in million, except per share data)
| February 1, 2008 | February 2, 2007 | February 3, 2006 | January 28, 2005 | January 30, 2004 | February 1, 2002 | January 28, 2000 | Results of Operations | | | | | | | | Net Revenue | 61,133 | 57,420 | 55,788 | 49,121 | 41,327 | 31,168 | 25,265 | Cost of Revenue | 49,462 | 47,904 | 45,897 | 40,103 | 33,764 | 25,661 | 20,047 | Gross Margin | 11,671 | 9,516 | 9,891 | 9,018 | 7,563 | 5,507 | 5,218 | Gross Profit Margin | 19.1% | 16.6% | 17.7% | 18.4% | 18.3% | 17.7% | 20.7% | Operating Expenses | | | | | | | | + Selling, general and administrative | 7,538 | 5,948 | 5,051 | 4,352 | 3,604 | 2,784 | 2,387 | + Research, development and engineering | 693 | 498 | 458 | 460 | 434 | 452 | 374 | + Special charges | - | - | - | - | - | 482 | 194 | Total operating expenses | 8,231 | 6,446 | 5,509 | 4,812 | 4,038 | 3,718 | 2,955 | Total operating expenses as a % of net revenues | 13.5% | 11.2% | 9.9% | 9.8% | 9.8% | 10.4% | 10.9% | Operating Income | 3,440 | 3,070 | 4,382 | 4,206 | 3,525 | 1,789 | 2,263 | Operating profit margin | 5.6% | 5.3% | 7.9% | 8.6% | 8.5% | 5.7% | 9.0% | Investment and other income (loss), net | 387 | 275 | 226 | 197 | 186 | (58) | 188 | Income before income taxes extraordinary loss, and cumulative effect of change in accounting principle | 3,827 | 3,345 | 4,608 | 4,403 | 3,711 | 1,731 | 2,451 | Provision for income taxes | 880 | 762 | 1,006 | 1,385 | 1,086 | 485 | 785 | Net Income | 2,947 | 2,583 | 3,602 | 3,018 | 2,625 | 1,246 | 1,666 | Net profit margin | 4.8% |