On Aug. 17, Dell
- The company met lowered expectations of $14 billion in revenue and $0.22 a share in earnings
- The balance sheet shows signs of deterioration, with cash balances down and accounts receivable and inventory growth outpacing sales growth.
- In addition to the disappointing results, Dell announced an informal inquiry by the SEC into the company's revenue recognition and other accounting practices.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$14,000 |
$14,094 |
$13,428 |
5% |
|
Net Profit |
-- |
$502 |
$1,020 |
(50.8%) |
|
EPS |
$0.22 |
$0.22 |
$0.41 |
(46.3%) |
|
Diluted Shares |
-- |
2,278 |
2,478 |
(8.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
15.54% |
18.61% |
(3.07) |
|
Operating Margin |
4.29% |
8.74% |
(4.45) |
|
Net Margin |
3.56% |
7.60% |
(4.04) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$8,066 |
$9,046 |
(10.8%) |
|
Accounts Rec. |
$4,741 |
$3,910 |
21.3% |
|
Inventory |
$651 |
$570 |
14.2% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$10,323 |
$9,196 |
12.3% |
|
Long-Term Debt |
$504 |
$504 |
0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
2006 YTD |
2005 YTD |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$1,695 |
$2,109 |
(19.6%) |
|
Capital Expenditures |
$384 |
$347 |
10.7% |
|
Free Cash Flow |
$1,311 |
$1,762 |
(25.6%) |
Find out why Fools always follow the money.
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Related Foolishness:
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Dell is a selection of both the Motley Fool Inside Value and Motley Fool Stock Advisor newsletters.
At the time of publication,Nathan Parmelee had no positions in any of the companies mentioned. Fool rules are here.
