EMC Corporation
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EMC Corporation Financial Snapshot
Operating Performance
Fast Facts
176 South Street, Hopkinton, 01748,United The company reported revenue of US$17,015.13
Headquarters Address
States of America million during the fiscal year 2010 (2010). The
company's revenue grew at a CAGR of 11.13%
Telephone + 1 508 4351000
during 2006–2010, with an annual growth of 21.31%
over 2009. In 2010, the company recorded an
Fax + 1 508 4355222 operating margin of 15.77%, as against 10.08% in
2009.
Website www.emc.com
Ticker Symbol, Stock Exchange EMC, New York Stock Exchange Revenue and Margins
Number of Employees 43,200
Fiscal Year End December
Revenue (in US$ million) 17,015.13
SWOT Analysis
Strengths Weaknesses
Return on Equity
Global Presence Dependence on Suppliers
The company recorded a return on equity (ROE) of
10.92% for 2010, as compared to its peers, BMC
Market Leadership Limited Liquidity Position Software, Inc. (Ticker: BMC), Citrix Systems, Inc.
(Ticker: BDX) and American Tower Corporation
Strong Growth Prospects Weak Financial Performance (Ticker: AMT), which recorded ROEs of 29.26%,
10.85% and 10.65% respectively. The company
reported a net profit margin of 15.77% in 2010.
Strong Partnerships
Opportunities Threats Return on Equity
Demand for IT Security Government Regulation
Emergence of Cloud Computing Highly Competitive Environment
Growing Virtualization Market Rapid Changes in Technology
Outlook for Digital Data Creation
Liquidity Position
The company reported a current ratio of 1.04 in 2010,
as compared to its peers, BMC Software, Inc., Citrix
Systems, Inc. and American Tower Corporation,
which recorded current ratios of 1.42, 1.44 and 2.59
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$5,375.31 million, against US$3,214.77 million
current debt. The company reported a debt to equity
ratio of 0.20 in 2010 as compared to its peers, BMC
Software, Inc., Citrix Systems, Inc. and American
Tower Corporation, which recorded debt to equity
ratios of 0.25, 0.00 and 1.60 respectively.
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EMC Corporation - SWOT Profile Page 1
EMC Corporation
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Operational Efficiency ......................................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.2.5 Valuation ..........................................................................................................................................................14
2.3 Competitive Benchmarking ..................................................................................................................................15
2.3.1 Market Capitalization .......................................................................................................................................15
2.3.2 Efficiency ..........................................................................................................................................................16
2.3.3 Capital Expenditure ..........................................................................................................................................17
2.3.4 Valuation ..........................................................................................................................................................18
2.3.5 Turnover – Inventory and Asset .......................................................................................................................19
3 Recent Developments ........................................................................................................................... 20
4 SWOT Analysis ...................................................................................................................................... 22
4.1 SWOT Analysis - Overview ..................................................................................................................................22
4.2 Strengths ..............................................................................................................................................................22
4.3 Weaknesses .........................................................................................................................................................23
4.4 Opportunities ................................................................................................................................................