Financial Management Principles (Dell inc.) Essay

Financial Management Principles (Dell inc.) - Essay ExampleWhy had Dell made it to the top spot consort to writer Abrhm Lustgarten Dells peers see it as brilliantly managed brand - but no innovator in raw computing (Dell Tops Fortunes List, 2005). Though Dell jolly fell down to the 8th position in the 2006 Fortune magazines Americas Most Admired Companies List (Fortune Americas Most Admired Companies 2006), still it leads the computer manufacturers in this esteemed list. Thanks to the exemplary entrepreneurial and leadership trait of Michael Dell, Dell, Inc. has maintained its position as the industry leader in computer manufacturing.In terms of its financial status, as illustrated on Table 1 below, Dell is in good shape. In terms of profitability, the industry leader performs extremely well. Having a return on equity (ROE) of 86.5%, Dell enables its investors to yield $.856 in every dollar they invested on its stocks within a year. Together with 15.5% return on asset (ROA) and g ross gross profit that accounts for 18.2% of the entire revenue, the figures under the Profitability Ratios section of the Financial Ratios of the company (Table 1), exhibits the companys efficient cost management.