Dell's Working Capital Executive Summary

I.In order to sustain and improve dells performance and make upd harvest-time which will eventually lead to increase the market share, and to accede avail of the booming computer industry, Dell needs to count up with a plan to pay the future growth.

II.Dell reckoner Corporation, founded in 1984, designed, manufactured, sold, and serviced high performance personal computers (PCs). Its core strategy, and advantage over competitors, was alloting directly to customers. In 1996, Dell account an impressive growth in sales of 52%.

III.We forecasted, use the percent of sales method, for the next three years fiscal statements and we have done two analyses. First by change magnitude sales 20% and the other we increased sales by 50%. The financial ratios of our pro forma were also calculated. All these teaching were used to figure out the Additional Fund needed (AFN). Our final results came with negative AFN which means that the company doesnt need outside financing.

IV.As we have seen in our analysis, Dell has it all worked out. By exploitation its ancestry system accurately, the company has more than enough resources to finance its growth internally and without any need for external financing. however the company, using its internal funds, can payout its long term debt and increase its dividend policy without affecting its growth and future expansion potentials.

Dell Computer CorporationCompany BackgroundDell Computer Corporation was founded by Michael Dell in 1984. The company designed, manufactured, sold, and serviced high performance personal computers (PCs). It succeeded when it began to market and sell its own brand personal computer by winning orders over a toll free telephone line, and deportation directly to customers, which was Dells core strategy. This, combined with the Build-to-order model gave Dell the f number hand over its competitors.

Dells build-to-order manufacturing process yielded low finished goods inventory balances.

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