Dell (DELL) Financial Strength : 0 (As of Jul. 2013)

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What is Dell Financial Strength?

Dell has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Dell's Interest Coverage for the quarter that ended in Jul. 2013 was 4.69. Dell's debt to revenue ratio for the quarter that ended in Jul. 2013 was 0.12. As of today, Dell's Altman Z-Score is 0.00.

Competitive Comparison of Dell's Financial Strength

For the Computer Hardware subindustry, Dell's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dell's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Dell's Financial Strength distribution charts can be found below:

* The bar in red indicates where Dell's Financial Strength falls into.

Dell Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Dell's Interest Expense for the months ended in Jul. 2013 was $-58.00 Mil. Its Operating Income for the months ended in Jul. 2013 was $272.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2013 was $4,075.00 Mil.

Dell's Interest Coverage for the quarter that ended in Jul. 2013 is

Interest Coverage	=	-1	*	Operating Income (Q: Jul. 2013 )	/	Interest Expense (Q: Jul. 2013 )
	=	-1	*	272	/	-58
	=	4.69

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Dell's Debt to Revenue Ratio for the quarter that ended in Jul. 2013 is

Debt to Revenue Ratio	=	Total Debt (Q: Jul. 2013 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(2736	+	4075)	/	58056
	=	0.12

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Dell has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Dell (DELISTED:DELL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Dell has the Financial Strength Rank of 0.

Dell Financial Strength Related Terms

Thank you for viewing the detailed overview of Dell's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.

Dell (DELL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Dell Inc (DELISTED:DELL) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.dell.com

Dell Inc is a Delaware Corporation, which was founded in 1984. The Company offers a range of technology solutions, including servers and networking products, storage products, services, software and peripherals, mobility products, and desktop PCs. The Company sells its products and services directly to customers through dedicated distribution channels, such as retailers, distributors, and resellers. Its business segments are Large Enterprise, Public, Small and Medium Business ('SMB'), and Consumer. Large Enterprise customers include large global and national corporate businesses. Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. SMB segment is focused on helping small and medium-sized businesses get the most out of their technology by offering scalable products, services, and solutions. Consumer segment is focused on delivering what customers want from the total technology experience of entertainment, mobility, gaming, and design. The Company designs, develops, manufactures, markets, sells, and supports a range of products, solutions, and services. The Company also provides various customer financial services to its Commercial and Consumer customers. Its enterprise solutions include servers, networking, and storage products. The Company's services include a range of configurable IT and business services, including infrastructure technology, consulting and applications, and product-related support services. The Company offers Dell-branded printers and displays and a multitude of competitively priced third-party peripheral products such as printers, televisions, notebook accessories, mice, keyboards, networking and wireless products, digital cameras, and other products. The Company also sells a range of third-party software products, including operating systems, business and office applications, anti-virus and related security software, entertainment software, and products in various other categories. Client Products offers a variety of mobility and desktop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, to its Commercial and Consumer customers. The Company offers or arranges various financing options and services for its Commercial and Consumer customers in the U.S. and Canada through Dell Financial Services ('DFS'). DFS offers a range of financial services, including originating, collecting, and servicing customer receivables related to the purchase of Dell products. DFS offers private label credit financing programs to qualified Consumer and Commercial customers and offers leases and fixed-term financing to Commercial customers. The Company sells its products and services directly to customers and through various other sales distribution channels, such as retailers, third-party solution providers, system integrators, and third-party resellers. Its customers include large global and national corpora