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Dell (DELL) Sloan Ratio % : -1.42% (As of Jul. 2013)


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What is Dell Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Dell's Sloan Ratio for the quarter that ended in Jul. 2013 was -1.42%.

As of Jul. 2013, Dell has a Sloan Ratio of -1.42%, indicating the company is in the safe zone and there is no funny business with accruals.


Dell Sloan Ratio % Historical Data

The historical data trend for Dell's Sloan Ratio % 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 Sloan Ratio % Chart

Dell Annual Data
Trend Jan04 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.54 3.97 -0.44 9.28 5.06

Dell Quarterly Data
Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.09 9.29 5.06 3.51 -1.42

Competitive Comparison of Dell's Sloan Ratio %

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

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

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



Dell Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Dell's Sloan Ratio for the fiscal year that ended in Jan. 2013 is calculated as

Sloan Ratio=(Net Income (A: Jan. 2013 )-Cash Flow from Operations (A: Jan. 2013 )
-Cash Flow from Investing (A: Jan. 2013 ))/Total Assets (A: Jan. 2013 )
=(2372-3283
--3316)/47540
=5.06%

Dell's Sloan Ratio for the quarter that ended in Jul. 2013 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jul. 2013 )
=(1339-4423
--2434)/45871
=-1.42%

Dell's Net Income for the trailing twelve months (TTM) ended in Jul. 2013 was 475 (Oct. 2012 ) + 530 (Jan. 2013 ) + 130 (Apr. 2013 ) + 204 (Jul. 2013 ) = $1,339.00 Mil.
Dell's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jul. 2013 was 1343 (Oct. 2012 ) + 1441 (Jan. 2013 ) + -39 (Apr. 2013 ) + 1678 (Jul. 2013 ) = $4,423.00 Mil.
Dell's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jul. 2013 was -2262 (Oct. 2012 ) + 233 (Jan. 2013 ) + -137 (Apr. 2013 ) + -268 (Jul. 2013 ) = $-2,434.00 Mil.

* 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) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Jul. 2013, Dell has a Sloan Ratio of -1.42%, indicating the company is in the safe zone and there is no funny business with accruals.


Dell Sloan Ratio % Related Terms

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Dell (DELL) Business Description

Traded in Other Exchanges
N/A
Address
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