Mohanad almathami



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College of Business Administration

ASSE: 3211 Learning Outcome Assessment II



Web Quest

Dell and Apple in comparison to the industry

Submitted by:


MOHANAD ALMATHAMI

200800809

SUMMER 2012



Introduction
Background Information:
Financial Analysis involves a comparison of a firm’s performance with that of another firm in the same line of business, or the firm’s current performance with that of the industry to identify its strengths and weaknesses in the areas of liquidity, profitability, efficiency and leverage. This task is to compare the financial ratios of Dell, Apple and the computer industry and be able to assess their strengths and weaknesses.

Importance of Financial Analysis:

The information provided by financial analysis is used by;



  1. Financial managers to make financing and investment decisions to maximize shareholder’s value.

  2. Stockholders and creditors to evaluate attractiveness of the firm as an investment by examining its ability to meet its current and expected future financial obligations.

Learning Outcome:

At the end of the task, the user will be able to;



  1. Assess the liquidity of Dell and Apple in comparison to the industry

  2. Assess the profitability of Dell and Apple in comparison to the industry

  3. Assess the efficiency of Dell and Apple in comparison to the industry

  4. Assess risk of Dell and Apple in comparison to the industry

  5. Determine which company is more attractive investment prospect

Task
The user is expected to perform the following task to be able to compare Dell, Apple and the computer industry.
Task 1: Information about the computer industry

Task 2: Company and background information about Dell

Task 3: Company and background information about Apple

Task 4: Meaning of financial ratios and formula



  1. Liquidity Ratio

  2. Profitability Ratio

  3. Efficiency Ratio

  4. Risk or Coverage Ratio

Task 5: Complete the following journals

  1. Journal 1 Industry and Company Information

  2. Journal 2 Summary of Ratios

  3. Journal 3 Summary of Findings


Click here for the copy of the journal #1 (Industry and Company Information)
Click here for the copy of the journal #2 (Summary of Ratios)
Click here for the copy of the journal #3 (Summary of Findings)

Process
Step 1: In your journal # 1, complete the Computer Industry Analysis by providing short but complete information about products, customer base, top line and expenses. Use the following link to answer the questions.
http://www.valueline.com/Stocks/Industry_Report.aspx?id=7178
Step 2: In your journal 1, complete the Company and Background Information for Dell and Apple. Provide short history and product listing. Use the following link to answer the question

http://en.wikipedia.org/wiki/Dell

http://en.wikipedia.org/wiki/Apple_Inc.
Step 3: Read and understand the following financial ratios and formula, by clicking the link below.


  1. Liquidity Ratio

  2. Profitability Ratio

  3. Efficiency Ratio

  4. Risk or Coverage Ratio

http://www.netmba.com/finance/financial/ratios/
Step 4: In your journal 2, complete the following ratios for Dell and Apple and the Computer Industry

  1. For Apple Inc. follow the following link

http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=FinancialCondition

http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=ProfitMargins

http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=PriceRatios

http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=GrowthRates

http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=InvestmentReturns

http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=ManagementEfficiency



  1. For Dell Inc. follow the following link

http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=FinancialCondition

http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=ProfitMargins

http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=PriceRatios

http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=GrowthRates

http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=InvestmentReturns

http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=ManagementEfficiency

Step 5: In your journal #3, assess each company’s liquidity, profitability, efficiency and risk using the information from journal #2.
You have completed the task!

Resources
Journal #1-Industry and Company Information
Journal #2-Summary of Ratios
Journal #3-Summary of Findings
http://www.valueline.com/Stocks/Industry_Report.aspx?id=7178
http://en.wikipedia.org/wiki/Dell
http://en.wikipedia.org/wiki/Apple_Inc.
http://www.netmba.com/finance/financial/ratios/
http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=FinancialCondition
http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=ProfitMargins
http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=PriceRatios
http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=GrowthRates
http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=InvestmentReturns
http://investing.money.msn.com/investments/key-ratios?symbol=AAPL&page=ManagementEfficiency
http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=FinancialCondition
http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=ProfitMargins
http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=PriceRatios
http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=GrowthRates
http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=InvestmentReturns
http://investing.money.msn.com/investments/key-ratios?symbol=dell&page=ManagementEfficiency

Evaluation





3

2

1

Points

Industry and Company Information

Correct responses

Complete sentences

Grammatically correct


Responses are not totally correct

Sentences are short

Some grammatical errors


Does not answer all questions. 

Has quite a few sentence and grammatical errors. 







Journal Pages

worksheet areas are correctly completed


worksheets are not fully completed, but are most of the way done

worksheets are incomplete but some attempt was made




Ratio Analysis

Creative and critical analysis


Some originality

Lacks originality




Decision-making

Correct Analysis

Analysis is not totally correct

Analysis is somewhat different




TOTAL POINTS














Conclusion

On the Task:

In performing the task the user obtains an understanding about the computer industry; its market, future outlook and growth prospect. The user obtains information about Dell and Apple, their respective history, market share, financial condition, operating performance. The user learns about the liquidity, profitability, efficiency and risk of both companies in comparison with the industry. The user also was able to assess each company’s individual strengths and weaknesses. At the end, the user was able to determine which company provides better investment opportunity.



On the Web Quest Project:

This project is fun and educational at the same time. It combines my knowledge in accounting and information technology. This system is a good platform to learn accounting utilizing the internet as a resource. The method is very detailed and specific and the users will learn a lot from the vast information provided by the internet. It is a creative and innovative way to study and learn.



JOURNAL #1: INDUSTRY AND COMPANY INFORMATION


  1. Computer Industry Analysis



    1. Products _________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________



    1. Customer Base____________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________



    1. Top Line__________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________



    1. Expenses_________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________



  1. Company and Background Information: DELL and APPLE




dell logo

apple-logo.svg

Type







Ticker Symbol







Industry







Date Founded







Founder(s)







Headquarters







Area served







Key people-CEO







Products







Revenue







Operating income







Net income







Total assets







Total equity







Employees







Subsidiaries







Website









    1. Short History of Dell and Apple_______________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________



    1. Products Listing of Dell and Apple_____________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________



JOURNAL #2: Summary of Ratios

Financial Condition

Dell

Apple

Industry

Current Ratio










Quick Ratio










Debt/Equity Ratio










Interest Coverage










Leverage Ratio













Profit Margins %

Dell

Apple

Industry

Gross Margin










Net Profit Margin










5-Yr Gross Margin (5-Year Avg.)










5-Yr Net Profit Margin (5-Year Avg.)













Price Ratios

Dell

Apple

Industry

Current P/E Ratio










Price/Book Value













Growth Rates %

Dell

Apple

Industry

Sales (Qtr vs. year ago qtr)










Net Income (Qtr vs. year ago qtr)










Sales (5-Year Annual Avg.)










Net Income (5-Year Annual Avg.)













Investment Returns %

Dell

Apple

Industry

Return On Equity










Return On Assets










Return On Capital










Return On Equity (5-Year Avg.)










Return On Assets (5-Year Avg.)










Return On Capital (5-Year Avg.)













Management Efficiency

Dell

Apple

Industry

Receivable Turnover










Inventory Turnover










Asset Turnover










JOURNAL #3: SUMMARY OF FINDINGS

STRENGTHS AND WEAKNESSES


  1. Assess the liquidity of Dell and Apple in comparison to the industry

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

  1. Assess the profitability of Dell and Apple in comparison to the industry

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


  1. Assess the efficiency of Dell and Apple in comparison to the industry

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


  1. Assess risk of Dell and Apple in comparison to the industry

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

  1. Determine which company is more attractive investment prospect? Why?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

ASSE 3211 Web Quest Learning Outcome Assessment II



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