DELL INC.

Asset Management/Turnover Ratios : Ref#(74)

Days Sales in inventory = 365/IT=inventory turnover   (IT=COGS/I)

• Low and/or falling ratio indicates that: on average it doesn't take long to sell the inventory

Dell (2006)=  365/79.78=4.58

Dell (2005)=  365/87.56=4.17

Dell (2004)=  365/103.64=3.52

Days Sales in Receivables= 365/RT  (RT=S/AR)

Dell (2006)=  365/10.25=35.61

Dell (2005)=  365/11.15=32.74

Dell (2004)=  365/11.40=32.02