Problem -
|
$ millions
|
Fiscal year ending
|
|
Dell Inc.
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Jan.30, 2009
|
Feb.1,2008
|
Feb.2, 2007
|
|
Revenues
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$61,101
|
$61,133
|
$57,420
|
|
Cost of goods sold
|
50,144
|
49,462
|
47,904
|
|
Inventory
|
867
|
1,180
|
660
|
|
Hewlett-Packard Company
|
Oct.31, 2008
|
Oct. 31, 2007
|
Oct.31, 2006
|
|
Revenues (Products only)
|
$91,697
|
$84,229
|
$73,557
|
|
Cost of goods sold
|
69,342
|
63,435
|
55,248
|
|
Inventory
|
7,879
|
8,033
|
7,750
|
|
Apple Inc.
|
Sep.27,2008
|
Sep.29, 2007
|
Sep.30, 2006
|
|
Revenues
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$32,479
|
$24,006
|
$19,315
|
|
Cost of goods sold
|
21,334
|
15,852
|
13,717
|
|
Inventory
|
509
|
346
|
270
|
Required -
a. Compute the gross profit margin (GPM) for each of these companies for fiscal years 2008, 2007, and 2006.
b. Compute the inventory turnover ratios for fiscal years 2008 and 2007. (All three firms use FIFO inventory costing.)
c. What factors might determine the differences amoung these three companies' ratios?