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Financial Analisis

Accounting Fundamentals � Financial Analysis Project

Introduction
“Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project.”Its main objective is to provide a firm’s financial situation overview and to identify major changes in trends that could impact business decision making.
The objective of this paper is to perform a financial analysis of two mayor companies in the electronic computers industry � Dell Inc. and Apple Inc. First, an overall overview of the companies and the electronic computers’ industry will be presented. Financial ratios for both companies (FY05 and FY06) will follow providing a basis for comparison and analysis. Additionally, competitive advantages and disadvantages will be appointed for both companies.
Finally, a conclusion with recommendations of improvement and/or about how to exploit the existing advantages will provide an outlook of future business prospects for Dell Inc. and Apple Inc.
Financial official information for Dell Inc. and Apple Inc. can be found in the appendix section.

About Electronic Computers Industry
Now at days, the electronic computers industry faces several challenges such as shortened product life cycles, concerns about overhead cost requirements, intense price competition and the convergence of technologies (computing, telecommunications, etc.) as the industry enters to a more networked world.
In response, computer companies are continuously seeking cash infusions and cutting edge product innovations. Thus, research and development (R&D) plays a very important role in retaining technological superiority and dominance in the worldwide computers industry (spending on R&D by U.S. computer companies continue to be the highest in any major U.S. manufacturing industry).
Moreover, to meet competitive challenges, computer companies are turning more and more to mergers and acquisitions as a viable means for growth and development (i.e....