Dell (DELL) ROE % : 7.58% (As of Jul. 2013)

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What is Dell ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Dell's annualized net income for the quarter that ended in Jul. 2013 was $816.00 Mil. Dell's average Total Stockholders Equity over the quarter that ended in Jul. 2013 was $10,760.00 Mil. Therefore, Dell's annualized ROE % for the quarter that ended in Jul. 2013 was 7.58%.

The historical rank and industry rank for Dell's ROE % or its related term are showing as below:

DELL's ROE % is not ranked ^*
in the Hardware industry.
Industry Median: 4.54
* Ranked among companies with meaningful ROE % only.

Dell ROE % Historical Data

The historical data trend for Dell's ROE % can be seen below:

* 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.

* Premium members only.

Dell ROE % Chart

Dell Annual Data

Trend

Jan04

Jan05

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

ROE %

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61.90

28.91

39.31

41.86

24.21

Dell Quarterly Data
	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13
ROE %	Get a 7-Day Free Trial															30.65	19.07	20.33	4.86	7.58

Competitive Comparison of Dell's ROE %

For the Computer Hardware subindustry, Dell's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution in the Hardware Industry

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

* The bar in red indicates where Dell's ROE % falls into.

Dell ROE % Calculation

Dell's annualized ROE % for the fiscal year that ended in Jan. 2013 is calculated as

ROE %	=	Net Income (A: Jan. 2013 )	/	( (Total Stockholders Equity (A: Jan. 2012 )	+	Total Stockholders Equity (A: Jan. 2013 ))	/ count )
	=	2372	/	( (8917	+	10680)	/ 2 )
	=	2372	/	9798.5
	=	24.21 %

Dell's annualized ROE % for the quarter that ended in Jul. 2013 is calculated as

ROE %	=	Net Income (Q: Jul. 2013 )	/	( (Total Stockholders Equity (Q: Apr. 2013 )	+	Total Stockholders Equity (Q: Jul. 2013 ))	/ count )
	=	816	/	( (10739	+	10781)	/ 2 )
	=	816	/	10760
	=	7.58 %

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jul. 2013) net income data. ROE % is displayed in the 30-year financial page.

Dell (DELISTED:DELL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

	ROE %		(Q: Jul. 2013 )
=	Net Income	/	Total Stockholders Equity
=	816	/	10760
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(816 / 58056)	*	(58056 / 45331)	*	(45331 / 10760)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	1.41 %	*	1.2807	*	4.2129
=	ROA %	*	Equity Multiplier
=	1.81 %	*	4.2129
=	7.58 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

	ROE %		(Q: Jul. 2013 )
=	Net Income	/	Total Stockholders Equity
=	816	/	10760
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(816 / 876)	*	(876 / 1088)	*	(1088 / 58056)	*	(58056 / 45331)	*	(45331 / 10760)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.9315	*	0.8051	*	1.87 %	*	1.2807	*	4.2129
=	7.58 %

Note: The net income data used here is four times the quarterly (Jul. 2013) net income data. The Revenue data used here is four times the quarterly (Jul. 2013) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
^* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.

Dell ROE % Related Terms

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Dell (DELL) Business Description

Industry

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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