BACHELOR IN BUSINESS ADMINISTRATION

SEMESTER 3

BBA6053 – Introduction to Accounting

ASSIGNMENT 1

Prepared for:
Lecturer’s name: Ms. Najwatun Najah bt Ahmad Supian

Prepared by:
Student’s Name: – ID No:
Contents
DELL TECHNOLOGIES INC........................................................................................................1
Introduction of the company.....................................................................................................1
Products and Services............................................................................................................2
Content / calculation......................................................................................................................2
Comparison of two years’ ratio analysis and the interpretation......................................................2
Liquidity Ratio...........................................................................................................................3
a) Current ratio:..................................................................................................................3
b) Quick ratio:......................................................................................................................3
Activity ratio...............................................................................................................................3
a) Receivables turnover:.....................................................................................................3
b) Payables turnover:..........................................................................................................3
c) Inventory turnover ratio:...............................................................................................3
Profitability ratio........................................................................................................................3
a) Profit margin ratio:.........................................................................................................3
b) Return on assets ratio:....................................................................................................3
Conclusion......................................................................................................................................4
Reference.........................................................................................................................................5
Appendices......................................................................................................................................6
 DELL TECHNOLOGIES INC

Introduction of the company

Dell Technologies is a leading global end-to-end technology provider, with a comprehensive
portfolio of IT hardware, software and services solutions spanning both traditional infrastructure
and emerging, multi-cloud technologies that enable our customers to build their digital future and
transform how they work and live.
They operate globally across key functional areas such as technology and product development,
marketing, go-to-market and global services, and are supported by Dell Financial Services. We
continue to seamlessly deliver differentiated and holistic IT solutions to our customers, which
has driven significant revenue growth and share gains.
Dell Technologies operates with significant scale and an unmatched breadth of complementary
offerings. Digital transformation has become essential to all businesses, and we have expanded
our portfolio to include holistic solutions that enable our customers to drive their ongoing digital
transformation initiatives. Dell Technologies’ integrated solutions help customers modernize
their IT infrastructure, manage and operate in a multi-cloud world, address workforce
transformation, and provide critical security solutions to protect against the ever increasing and
evolving security threats. With their extensive portfolio and their commitment to innovation, we
have the ability to offer secure, integrated solutions that extend from the edge to the core to the
cloud, and we are at the forefront of the software-defined and cloud native infrastructure era. Our
end-to-end portfolio is supported by a differentiated go-to-market engine, which includes a
43,000-person sales force, a global network of channel partners, and a world-class supply chain
that together drive revenue growth and operating efficiencies.
Products and Services
They design, develop, manufacture, market, sell, and support a wide range of products and
services. They are organized into the following business units, which are our reportable
segments: Infrastructure Solutions Group; Client Solutions Group; and VMware.

Content / calculation

Comparison of two years’ ratio analysis and the interpretation

2018 2019
$ ‘million $ ‘million
1) Liquidity ratio
 Current ratio 36,868 36,138
52,456 44,972
= 0.7:1 = 0.8:1
  Quick Ratio 36,868-3281 36,138-3649
52,456 44,972
= 0.6:1 = 0.7:1
1) Activity ratio
 Receivables 92,154 90,621
turnover ratio 12,484 12,371
= 7:1 = 7:1

 Payables 63,221 65,568

turnover ratio 20,065 19,213
= 3:1 = 3:1

 Inventory 63,221 65,568

turnover ratio 3,281 3,649
= 19:1 = 18:1
2) Profitability ratio
 Profit margin 28,933 X 100 25,053 X 100
ratio 92,154 90,621
= 30% = 30%
3) Return on Assets
 Debt ratio 44,319 X100 49,201
3,155 (942)
= 14% = -52%

Liquidity Ratio
a) Current ratio:
0.1:1 current ratio is not the best standard to be kept there for improvements should be
made to raise the standard ratio to be above a 1:1
b) Quick ratio:
The quick ratio for Dell is ok but more investments in liquid assets should be made to
raise the ratio from 0.6:1 to 1:1 instead of dropping the ratio from the 0.7:1 standard that
was kept the previous year.
Activity ratio
a) Receivables turnover:
The receivables turnover rate of 7.1 is high and therefore enough to be maintained. As
was seen from 2019 to 2020.
 b) Payables turnover:
This ratio of 3:1 appears weak though it has somehow been maintained through the
previous year to the current one. A higher payable turnover ratio would well indicate that
payments to creditors are made on time.
c) Inventory turnover ratio:
A nice increase on the inventory turnover ratio was noticed period the ratio for the
previous year was 18.1 while the ratio for the current year is 19.1 which is a good and
acceptable change. It is a Good Change because it indicates that purchases were sold off
quicker this year than they were during the previous year.
Profitability ratio
a) Profit margin ratio:
A 30% profit margin ratio can be said to be a good one thought it was maintained in both
2019 and 2020. In the long run anyway a higher ratio can be achieved.
b) Return on assets ratio:
The debt ratio of Dell technologies improved significantly from a -52% to a positive
14%. It appears that for the previous year 2019 there was highly geared as much as to a
point where shareholder’s equity at all available to have serviced investors fund. The
improvement in the current year is commendable as it seems that investors and creditors
can begin to have confidence in Dell Technologies.

Conclusion
The financial ratios that are kept by Dell technologies can be said to be good in general,
notwithstanding the which saw a healthy increase from the previous period can still be improved
on.
 References
Corporate Finance Institute, Liquidity Ratio, viewed 27 July 2020,
https://corporatefinanceinstitute.com/resources/knowledge/finance/liquidity-ratio/
Accounting Tools, Liquidity Ratios, viewed 26 July 2020,
https://www.accountingtools.com/articles/2017/5/13/liquidity-ratios
Tools Hero, Financial Management, Debt Ratio analysis, viewed 25 July 2020,
https://www.toolshero.com/financial-management/debt-ratio-analysis/
This Matter, Activity Ratios, viewed 24 July 2020,
https://thismatter.com/money/stocks/valuation/activity-ratios.amp.htm

Wall Street Mojo, Activity Ratios, Viewed 26 July 2020,

https://www.wallstreetmojo.com/activity-ratios/
 Appendices
Ratio Analysis Formulas
Liquidity Ratio
Current Ratio = Current assets / Current liability
Quick Ratio = Current assets - Inventory / Current Liabilities
Activity Ratios
Receivables turnover Ratio = Revenue / receivables
Payable Turnover Ratio = Purchases or cost of Sales / Payable
Inventory Turnover = Cost of Sales / Inventory
Profitability Ratio
(Operating Profit x 100) / Sales
Return on Assets Ratio
Debt Ratio = (Long term debt x Equity) / 100

2018 2019
$ ‘million $ ‘million
2) Liquidity ratio
 Current ratio 36,868 36,138
52,456 44,972
= 0.7:1 = 0.8:1

 Quick Ratio 36,868-3281 36,138-3649

52,456 44,972
= 0.6:1 = 0.7:1
4) Activity ratio
 Receivables 92,154 90,621
turnover ratio 12,484 12,371
= 7:1 = 7:1

 Payables 63,221 65,568

turnover ratio 20,065 19,213
= 3:1 = 3:1
  Inventory 63,221 65,568
turnover ratio 3,281 3,649
= 19:1 = 18:1
5) Profitability ratio
 Profit margin 28,933 X 100 25,053 X 100
ratio 92,154 90,621
= 30% = 30%
6) Return on Assets
 Debt ratio 44,319 X100 49,201
3,155 (942)
= 14% = -52%