By using the latest 10-K reports of Dell and HP, Answer the following questions : 

 https://www.sec.gov/edgar/searchedgar/companysearch.html )

 

1) Dupont Analysis: Decompose ROE into three ratios, analyze how three ratios affect ROE; Compare and contrast the two companies' ROE values and compare to industry ratios; Use the ratios to analyze why the company's ROE is different from its competitor and industry average.

2) For both companies, use the most recent year's financial data, calculate SBE, DOL, DFL, and DTL. Please show your calculations, compare and contrast the two companies. You may use the following assumptions or make your own assumptions and explain why: variable costs = 75% of cost of sales and 25% of selling, general and administrative expenses, and the remainders consider fixed costs. For any other operating expenses used in deriving EBIT, you can determine if they should be variable or fixed costs.

Answer rating: 100% (QA)

Dupont Analysis Decompose ROE into Three Ratios The Dupont Analysis breaks down Return on Equity ROE ... View the full answer