Andrew Potter is comparing the cash-flow-generating ability of Dell Inc. with that of other computer manufacturers: Hewlett Packard (NYSE: HPQ) and Apple Inc. (NASDAQ: AAPL). He collects information from the companies’ annual reports and prepares the following table.
Cash flow from operating activities
|
As a percentage of total net revenue |
|||
|
2009 |
2008 |
2007 |
|
|
DELL HPQ AAPL |
7.38% 11.68% 23.68% |
3.10% 1233% 29.55% |
6.46% 9.22% 22.79% |
|
As a percentage of ending total assets |
|||
|
2009 |
2008 |
2007 |
|
|
DELL HPQ AAPL |
11.61% |
7.15% 12.87% 24.25% |
14.33% |
|
AAPL = Apple; HPQ= Hewlett Packard. |
What is Potter likely to conclude about the relative cash-flow-generating ability of these companies?