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Accounting, Finance, SPSS
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Topic:
Analysis of Financial Statement: Intel Corp (INTC) vs Advanced Micro Devices (AMD) (Coursework Sample)
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this paper is based on questions answered on financial analysis
source..Content:
Name
Professor
Course
Date
Analysis of Financial Statement
Intel Corp (INTC) vs Advanced Micro Devices (AMD)
Overview of Analysis
Both Intel Corp and Advanced Micro Devices are very competitive and are involved in many factors in order for the firms to enter and maintain their operations. The firms’ financial performance is a key factor since firms need to generate revenue in order to function in this industry. There are several financial measurements to analysis the profitability and risk of these firms.
Time-series and cross-section analysis of INTC and AMD
Profitability Analysis
Return on Assets (ROA)
2009
2008
2007
INTC
-2.45%
-2.40%
14.45%
AMD
-0.13%
1.23%
3.24%
DuPont ROA
2009
2008
2007
INTC
-2.45%
-2.40%
14.45%
AMD
-0.13%
1.23%
3.24%
In the analysis of the time-series analysis of INTC’s return on asset shows a downward trend from 2007 to 2009. This shows that INTC is becoming less and less efficient using its assets to generate earnings in a particular period. Examining the time-series analysis of AMD’s return on assets also shows a downward trend from 2007 to 2009. This illustrates that AMD is becoming less efficient with its assets to generate earnings. In cross-section analysis of INTC and AMD except for 2007 both firms are having trouble managing their assets to create earnings for themselves, also MGM’s return on assets is much more volatile than AMD. Looking at the chart, AMD has been more efficient with their assets than INTC has been over the three-year period that we studied them.
Profit Margin for ROA
2009
2008
2007
INTC
-14.55
-7.67
27.33
AMD
-0.39
3.56
11.15
In the examination of the time series analysis of INTC’s profit margin on the return on assets is able to display a downward trend for 2007 to 2009. The indication that can be derived with the lack of the ability of the general earnings that can be made and be able to generate certain amount of sales. In the process of the examination of the time series analyzing of the AMD which is also able to display the downward trends in the profits that have being able to be made in the margin for return on asset for the years between 2007 to 2009. The indication is that AMD is able to generate enough earnings of the sales in a certain level. In the analysis of the cross section of INTC and AMD for both of the firms of incase they have trouble being able to generate certain amount of sales.
Examining the time-series analysis of LVS also displays a severe downward trend for their profit margin for ROA for the years 2007 to 2009. This also indicates a lack of ability for LVS to generate earnings for a particular level of sales. INTC profit margin is much more volatile than the company AMD is. If the chart is able to be looked at the AMD can be seen as able to generate more earnings than INTC over the period of the studied analysis done.
Total Assets Turnover
2009
2008
2007
INTC
0.32
0.41
0.72
AMD
0.30
0.41
0.42
To be able make an analysis of the series of the company INTC total assets turnover of the period of the three years. The demonstration of the trend can be found to be downward trend. This illustrates that the company INTC is able to produce less sales in the process of the investment in company assets. After examination of the time series analysis of the company AMD total asset turnover from the years 2007 to 2009 which is downward trend. This is an illustration that AMD is producing less sales from the investments that have being done on assets.
Costs of Goods Sold Percentage
2009
2008
2007
INTC
58.99%
54.55%
49.15%
AMD
60.25%
59.97%
54.33%
In the examination of the time series of the company INTC costs of goods sold in percentage for the duration from 2007 to 2009 show an upward trend. This upward trend show that the company’s revenue in the three year period. The expenses have decreased leading to the company having lower gross profits. In the examination of the time series of AMD shows that there is an upward trend in the cost of goods sold in percentage. The revenue expenses of the company have increased leading to lower gross profits.
In cross section analysis of the two companies show that INTC and AMD both off the companies the cost of the goods that are sold has increased. INTC cost of goods percentage is lower as compared to the AMD over the three year period. This means that INTC is a more efficient company in comparison to the AMD based on the cost of goods sold percentages.
Selling, General and Administrative Expenses Percentage
2009
2008
2007
INTC
12.05%
10.14%
7.78%
AMD
15.56%
16.24%
16.11%
In the analysis of INTC selling, general and administrative expenses percentages for the three years are able to show an upward trend. This is an indication that INTC expenses outside of the costs of the goods that have being sold has increased in the three year time frame that is examined. In doing the analysis of AMD show that selling, general and administrative expenses percentages for the three years are on a downward trend.
In cross section analysis of the two companies show that AMD selling, general and administrative expense percentage in going down while the percentage in INTC is increasing. This means that AMD has a superior to INTC other expenses outside of the costs of goods sold.
Accounts Receivable Turnover
2009
2008
2007
INTC
19.67
23.56
39.78
AMD
12.45
16.67
17.89
Examination of the time-series analysis of INTC’s income tax expense percentage for the years 2007 to 2009 shows a downward trend. This indicates that INTC’s income tax expenses have decreased over the three-year time frame. This also means that INTC has generated less income from operations. Examination of the time-series analysis of MGM and LVS’s, the income tax expense percentage of AMD for the years 2007 to 2009 shows a downward trend. This indicates that AMD’s income tax expenses have decreased over the three-year time frame. This also means that LVS has generated less income from operations. In cross-section analysis of INTC and AMD, INTC’s income tax expense based on operating income is lower than AMD.
Income Tax Expenses Percentage on Operating Income
2009
2008
2007
INTC
-8.42%
6.55%
14.29%
AMD
-0.67%
1.89%
3.77%
Examination of the time-series analysis of INTC’s accounts receivable turnover for the years 2007 to 2009 shows a downward trend. This indicates that INTC is becoming more efficient at collecting
its account receivables in cash. Examining the time-series analysis of AMD’s accounts receivable turnover for the years 2007 to 2009 shows a downward trend. This indicates that AMD is becoming more efficient at collecting its account receivables in cash.
In cross-section analysis of INTC’s and AMD’s account receivable turnover ratio, both companies are improving in the efficiency of collecting their accounts receivables in cash. Based on the two companies’ ratios, INTC is more efficient at collecting account receivables than INTC.
Inventory Turnover
2009
2008
2007
INTC
0.06
0.06
0.07
AMD
0.20
0.21
0.21
Examination of the time-series analysis of INTC’s inventory turnover ratio for the years 2007 to 2009 shows a downward trend. This indicates that INTC is requiring less amount of time to produce, hold and sell its inventory. Examination of the time-series analysis of AMD’s inventory turnover ratio for the years 2007 to 2009 shows a downward trend. This indicates that INTC is requiring less amount of time to produce, hold and sell its inventory. In cross-section analysis of INTC’s and AMD’s inventory turnover ratio, both companies are improving in the amount of time to produce, hold and sell their inventories. Based on the two companies’ ratios, INTC is better at producing, holding, and selling their inventories.
Fixed Asset Turnover
2009
2008
2007
INTC
0.40
0.46
0.48
AMD
0.40
0.46
0.47
Examining the time-series analysis of INTC’s fixed asset turnover ratio for the years 2007 to 2009 shows a downward trend. This ratio indicated that INTC is becoming more efficient in its use of their fixed assets to generate sales dollars.
Examining the time-series analysis of AMD’s fixed asset turnover ratio for the years 2007 to 2009 shows a downward trend. This ratio indicated that INTC is becoming more efficient in its use of their fixed assets to generate sales dollars. In cross-section analysis of INTC’s and AMD’s fixed asset turnover ratio, both companies are improving in the use of their fixed assets to generate sales dollars. Based on the data both companies are just as efficient in this category.
Return on Common Equity (ROCE)
2009
2008
2007
INTC
-33.84%
-26.56%
54.17%
AMD
-8.77%
-8.46%
0.00%
DuPont ROCE
2009
2008
2007
INTC
-33.84%
-25.56%
54.17%
A...
Professor
Course
Date
Analysis of Financial Statement
Intel Corp (INTC) vs Advanced Micro Devices (AMD)
Overview of Analysis
Both Intel Corp and Advanced Micro Devices are very competitive and are involved in many factors in order for the firms to enter and maintain their operations. The firms’ financial performance is a key factor since firms need to generate revenue in order to function in this industry. There are several financial measurements to analysis the profitability and risk of these firms.
Time-series and cross-section analysis of INTC and AMD
Profitability Analysis
Return on Assets (ROA)
2009
2008
2007
INTC
-2.45%
-2.40%
14.45%
AMD
-0.13%
1.23%
3.24%
DuPont ROA
2009
2008
2007
INTC
-2.45%
-2.40%
14.45%
AMD
-0.13%
1.23%
3.24%
In the analysis of the time-series analysis of INTC’s return on asset shows a downward trend from 2007 to 2009. This shows that INTC is becoming less and less efficient using its assets to generate earnings in a particular period. Examining the time-series analysis of AMD’s return on assets also shows a downward trend from 2007 to 2009. This illustrates that AMD is becoming less efficient with its assets to generate earnings. In cross-section analysis of INTC and AMD except for 2007 both firms are having trouble managing their assets to create earnings for themselves, also MGM’s return on assets is much more volatile than AMD. Looking at the chart, AMD has been more efficient with their assets than INTC has been over the three-year period that we studied them.
Profit Margin for ROA
2009
2008
2007
INTC
-14.55
-7.67
27.33
AMD
-0.39
3.56
11.15
In the examination of the time series analysis of INTC’s profit margin on the return on assets is able to display a downward trend for 2007 to 2009. The indication that can be derived with the lack of the ability of the general earnings that can be made and be able to generate certain amount of sales. In the process of the examination of the time series analyzing of the AMD which is also able to display the downward trends in the profits that have being able to be made in the margin for return on asset for the years between 2007 to 2009. The indication is that AMD is able to generate enough earnings of the sales in a certain level. In the analysis of the cross section of INTC and AMD for both of the firms of incase they have trouble being able to generate certain amount of sales.
Examining the time-series analysis of LVS also displays a severe downward trend for their profit margin for ROA for the years 2007 to 2009. This also indicates a lack of ability for LVS to generate earnings for a particular level of sales. INTC profit margin is much more volatile than the company AMD is. If the chart is able to be looked at the AMD can be seen as able to generate more earnings than INTC over the period of the studied analysis done.
Total Assets Turnover
2009
2008
2007
INTC
0.32
0.41
0.72
AMD
0.30
0.41
0.42
To be able make an analysis of the series of the company INTC total assets turnover of the period of the three years. The demonstration of the trend can be found to be downward trend. This illustrates that the company INTC is able to produce less sales in the process of the investment in company assets. After examination of the time series analysis of the company AMD total asset turnover from the years 2007 to 2009 which is downward trend. This is an illustration that AMD is producing less sales from the investments that have being done on assets.
Costs of Goods Sold Percentage
2009
2008
2007
INTC
58.99%
54.55%
49.15%
AMD
60.25%
59.97%
54.33%
In the examination of the time series of the company INTC costs of goods sold in percentage for the duration from 2007 to 2009 show an upward trend. This upward trend show that the company’s revenue in the three year period. The expenses have decreased leading to the company having lower gross profits. In the examination of the time series of AMD shows that there is an upward trend in the cost of goods sold in percentage. The revenue expenses of the company have increased leading to lower gross profits.
In cross section analysis of the two companies show that INTC and AMD both off the companies the cost of the goods that are sold has increased. INTC cost of goods percentage is lower as compared to the AMD over the three year period. This means that INTC is a more efficient company in comparison to the AMD based on the cost of goods sold percentages.
Selling, General and Administrative Expenses Percentage
2009
2008
2007
INTC
12.05%
10.14%
7.78%
AMD
15.56%
16.24%
16.11%
In the analysis of INTC selling, general and administrative expenses percentages for the three years are able to show an upward trend. This is an indication that INTC expenses outside of the costs of the goods that have being sold has increased in the three year time frame that is examined. In doing the analysis of AMD show that selling, general and administrative expenses percentages for the three years are on a downward trend.
In cross section analysis of the two companies show that AMD selling, general and administrative expense percentage in going down while the percentage in INTC is increasing. This means that AMD has a superior to INTC other expenses outside of the costs of goods sold.
Accounts Receivable Turnover
2009
2008
2007
INTC
19.67
23.56
39.78
AMD
12.45
16.67
17.89
Examination of the time-series analysis of INTC’s income tax expense percentage for the years 2007 to 2009 shows a downward trend. This indicates that INTC’s income tax expenses have decreased over the three-year time frame. This also means that INTC has generated less income from operations. Examination of the time-series analysis of MGM and LVS’s, the income tax expense percentage of AMD for the years 2007 to 2009 shows a downward trend. This indicates that AMD’s income tax expenses have decreased over the three-year time frame. This also means that LVS has generated less income from operations. In cross-section analysis of INTC and AMD, INTC’s income tax expense based on operating income is lower than AMD.
Income Tax Expenses Percentage on Operating Income
2009
2008
2007
INTC
-8.42%
6.55%
14.29%
AMD
-0.67%
1.89%
3.77%
Examination of the time-series analysis of INTC’s accounts receivable turnover for the years 2007 to 2009 shows a downward trend. This indicates that INTC is becoming more efficient at collecting
its account receivables in cash. Examining the time-series analysis of AMD’s accounts receivable turnover for the years 2007 to 2009 shows a downward trend. This indicates that AMD is becoming more efficient at collecting its account receivables in cash.
In cross-section analysis of INTC’s and AMD’s account receivable turnover ratio, both companies are improving in the efficiency of collecting their accounts receivables in cash. Based on the two companies’ ratios, INTC is more efficient at collecting account receivables than INTC.
Inventory Turnover
2009
2008
2007
INTC
0.06
0.06
0.07
AMD
0.20
0.21
0.21
Examination of the time-series analysis of INTC’s inventory turnover ratio for the years 2007 to 2009 shows a downward trend. This indicates that INTC is requiring less amount of time to produce, hold and sell its inventory. Examination of the time-series analysis of AMD’s inventory turnover ratio for the years 2007 to 2009 shows a downward trend. This indicates that INTC is requiring less amount of time to produce, hold and sell its inventory. In cross-section analysis of INTC’s and AMD’s inventory turnover ratio, both companies are improving in the amount of time to produce, hold and sell their inventories. Based on the two companies’ ratios, INTC is better at producing, holding, and selling their inventories.
Fixed Asset Turnover
2009
2008
2007
INTC
0.40
0.46
0.48
AMD
0.40
0.46
0.47
Examining the time-series analysis of INTC’s fixed asset turnover ratio for the years 2007 to 2009 shows a downward trend. This ratio indicated that INTC is becoming more efficient in its use of their fixed assets to generate sales dollars.
Examining the time-series analysis of AMD’s fixed asset turnover ratio for the years 2007 to 2009 shows a downward trend. This ratio indicated that INTC is becoming more efficient in its use of their fixed assets to generate sales dollars. In cross-section analysis of INTC’s and AMD’s fixed asset turnover ratio, both companies are improving in the use of their fixed assets to generate sales dollars. Based on the data both companies are just as efficient in this category.
Return on Common Equity (ROCE)
2009
2008
2007
INTC
-33.84%
-26.56%
54.17%
AMD
-8.77%
-8.46%
0.00%
DuPont ROCE
2009
2008
2007
INTC
-33.84%
-25.56%
54.17%
A...
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