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;
Financial managers to make financing and investment decisions to maximize shareholder’s value.
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.
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.
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
Step 3: Read and understand the following financial ratios and formula, by clicking the link below.
Risk or Coverage Ratio
Step 4: In your journal 2, complete the following ratios for Dell and Apple and the Computer Industry
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.