icroprocessor that will outperform any that Intel currently produces. AMD also came out with a larger chip that would be useful to companies but would be too powerful for everyday PC users and small businesses. In their thirst for power, consumers are predicted to gobble up these super powerful microprocessors. The future of competition between these two companies is uncertain due to the combination of AMD's poor financial performance in recent years and their developments in produced chips that are presently superior to Intel.Financing, Investing and Operating Information:ROE:21177/29182 = 72.6%Financial Leverage:38938/29182 = 1.33Debt to Equity:884/29182 = 2.9%Debt to Assets:884/38938 = 2.3%Return on assets(5206/38938) = 13.4%Profit margin (5206/21177) = 24.6%Asset turnover (21177/38938) = 54.4%Operating cash flowTo total assets(7910/38938) = 20.3%Inventory turnover(11836/1626) = 7.3%Accounts receivable Turnover(21177/191) = 110.9%Gross profit margin(21177-11836)/21177 = 44%Operating profit Margin(7013/21177) = 33%Return on equity lets us know that for every dollar invested $0.73 is made.Asset turnover is a measure of effectiveness and thus Intel is pretty effective, but profit margin is a measure of efficiency and this % is low so Intel is not very efficient. Return on assets tells us that $0.13 is earned forever dollar of assets.The financial leverage Intel has a low debt to equity ratio, which is typical of a volatile industry such as computers. While the technology is advancing rapidly and constantly changing, Intel must keep enough assets to be able to cover all liabilities. Intel has low financial leverage because while more debt in capital structure would increase return on equity it would also increase the risk of the company. ...
