Week 4 Project
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Instructions
Course Project
Tasks:
Using the financial information gathered in Week 1, address the following questions:
- Identify two items or issues that cannot be derived from the financial statements of the two companies that you selected for your research.
- Explain why these items or issues would be of concern to investors and other stakeholders. In your rationale, address the specific interests of the different users of financial statements.
- Compare and contrast the two companies in terms of how well or how poorly they are performing in the areas of profit, debt, and asset turnover. Use appropriate ratios in your analysis. Indicate strategies for possible improvement in each area.
Submission Details:
Submit a 2-3 page Microsoft Word document, using APA style.
Name your file: SU_FIN4060_W4_CP_LastName_FirstInitial
Submit your assignment to the Submissions Area by the due date assigned.
Running head: Financial Analysis of Cisco & Dell
1
Financial Analysis of Cisco & Dell
3
Financial Statement Analysis
Sonya Hatfield
South University Online
FIN 4060
Professor Clark
February 29, 2020
Cisco Systems Inc. and Dell Technologies Inc.
Question One
Cisco Systems Company is one of the biggest American conglomerate tech company located in the San Jose as its headquarters in California. The company deals specifically in the development of the hardware, software and telecommunication equipment which are used by many companies in the world. Besides manufacturing the company also sells those networking products to some of the tech giants like Apple and even Microsoft. The company which was founded back in 1984 has many severally ranked in the fortune 500 companies by the Forbes ranking (Fraser, Ormiston & Fraser, 2010). In addition, the company reported a net revenue of U.S $51.9 billion dollars in the financial year ended 2019. According to the NYSE listing the company’s stocks are showing resilient to the market forces.
Dell technology Inc. is also an American multinational company which was formed as a result of the merger between the Dell and EMC Corporation. The company which deals in the manufacturing and assemblage of personal computers, smartphones, servers and even computer software. The company which is enlisted in the NYSE. Moreover, the company reported a revenue of close to U.S $90.63 billion dollars in the financial year ended 2019. According to the Forbes ranking in 2018, Dell Technology Inc. was rank 35th out of 2000 in the fortune 500 companies. From this ranking it could be evidently argued that the company was doing fairly well especially in the competitive tech industry that has some of the giant multinational conglomerates globally. In the same year Forbes ranking rank Cisco Systems Inc. 2nd out of 10 in the most valuable and rapidly growing brands in the global economy.
Question Two
Both companies have been very committed to the corporate governance as evident by some of their key commitment. For instance, both companies have singled out some key principles like transparency, responsibility and accountability in all the activities the companies does (King, Masumoto, Heller & Harp, 2011). Since through corporate governance is many companies have been able to continually grow in all spheres of growth, it follows that certain elements or key commitment must be at the center of management of any company.
Question three
Some of the competitors of Dell technology Inc. include companies like Apple Inc. and Microsoft all of which are giant companies with a wide market base globally. Also, the companies unlike Dell are using a different model of business like internet retail combined with brick and mortar. The similarities in all companies includes that they are all using customer driven business strategy to expand their customer base.
Reference
Daniel, M., Neves, R. F., & Horta, N. (2017). Company event popularity for financial markets using Twitter and sentiment analysis. Expert Systems with Applications, 71, 111-124.
Fraser, L. M., Ormiston, A., & Fraser, L. M. (2010). Understanding financial statements. Pearson.
King, N., Masumoto, W., Heller, P., & Harp, M. (2011). U.S. Patent No. 7,941,353. Washington, DC: U.S. Patent and Trademark Office.
