ACCT205 Final Financial Statement Analysis.docx

Horizontal analysis can be very helpful in looking

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a company’s financial statement for a certain period of time accounting periods. Horizontal analysis can be very helpful in looking for trends in a company's income.” Wainwright, (Ed.). (2012). Prepare a three-year, horizontal analysis of the income statement and balance sheet of your selected Ratio Analysis, In 2006, Dell’s 3.6% growth decreased compared to HP, which increased by 15% during that same time period. By the fourth quarter, Dell shipments declined 8.9% so by the end of 2006 Dell’s overall PC market share sat at 13.9% and the main competitor (HP) was sitting at 17.4%. By years end of 2006 Dell stood at 8.1 which was a big difference from 2005 in which it was 9.5%. The loss in 2006 totaled 8.8% every year. This loss was to competitors EMC and IBM. However, in 2017 Dell merged with EMC, which made a major difference in the sales alone, for the positive. The calculation for horizontal analysis would be dividing the amount from non-base year against the base year then (always) multiply that total by 100. Final Recommendation, I would recommend an investor investment in Dell, because in the first quarter in 2017 things improved. Revenue increased to $12.5 billion, Revenue for Non-GAAP was $12.6 billion. The loss in operating cost also increased to $161 million and the NON-GAAP operating income came to $565 million, which totaled a 37% increase year after year. Operations improved cash flow year after year of $800 million. So, the increase in cash flow allows for an increase in total net sales, which in turn increases revenue. A decision to invest in Dell, would be a good one.
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4 Analysis Based on your analysis, would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company, as long as you provide support for your position. I would recommend that an individual invest in Dell, which has been totally owned by Denali Holding Inc. since. The strengths of this company are the discipline of percentages, numbers and cash flow. Not only does Dell just sell computers but now has several entities that are bringing in revenue at high rates. There are a couple of revelations to the balance sheet, such at the assets,
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