Intel Corporation Analysis: Where are the numbers?
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Question 4.19 - How leveraged is your company
Accounts Current Yr. Previous Yr. N. Previous Yr. Trend Descript.
A Net cash from operating activity $18,884 20,963 16,692 Down only this
year.
B Interest Expense
C Cash interest Coverage Ratio 166.26 434.68 0 Down only this
year.
Question 4.20 - How well does your company invest in its future? (In Millions)
Accounts Current Yr. Previous Yr. N. Previous Yr. Trend Descript.
A Retained Earnings per share $2.20 2.46 2.06 Down only this
year.
B Stockholders' Equity per share $10.25 8.73 8.90 Up only this year.
C Retained Earnings Ratio .21 .28 .23 Down only this year.
D Is your company investing adequately in its future and why? Is Intel investing adequately in its future and why? Yes, Intel is adequately investing in the future. Intel has increased its spending in Research and development from $6.576 billion in 2010 to $10.148 billion in 2012. The investment is needed for Intel to continue being the dominant player within its market.
Question 4.21 - Capital and Treasury Stock (In Millions)
Accounts Current Yr. Previous Yr. N. Previous Yr. Trend Descript.
A Common stock 4,996 5,256 5,555 Down consistently
B Preferred stock 0 0 0
C Treasury stock 0 0 0
Question 4.21 - Capital and Treasury Stock
Accounts Current Yr. Previous Yr. N. Previous Yr. Trend Descript.
A Description of Business
B Consolidation
C Foreign Currency $15,828 12,853 10,761 Positive
D Cash and Cash Equivalents $18,162 14,837 0 Up this year, positive for this industry
E Inventories $4,734 4,096 0 Up this year, negative trend
Question 4.22 - Other significant information about your company not found on the financial statement?
Accounts Note # Disclosure Importance
A Discontinued Operations NA NA NA
B Related Parties NA NA NA
C Contingencies 27 They contend that we improperly condition price and other discounts on our microprocessors on exclusive or near exclusive dealing by some of our customers; and they allege that our software compiler business unfairly prefers Intel microprocessors over competing microprocessors and that, through the use of our compilers and other means, we have caused the dissemination of inaccurate and misleading benchmark results concerning our miroprocessors. We are a party to various legal proceedings. Unfavorable resolutions could include substantial monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling on or more products at all or in particular ways, precluding particular business practices, or requiring other remedies.
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Solution Summary
The solution discusses where are the numbers in the Intel Corporation analysis. The requiring remedies are provided.
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Chapter 4 - Where are the Numbers
Question 4.0 - What is your company's fiscal year
A When does your company's fiscal year end? The last Saturday of the year
B In your opinion, why did your company select this date to end its fiscal year? I think because Saturdays are the biggest shopping day of the week and it's after the holiday shopping
Do competitors use the same fiscal year as your company? Yes, AMD & IBM also uses the same day, last Saturday of the year.
Question 4.1 - Current Assets
Current Asset Category Significance
A Cash and Cash Equivalents $8,478,000,000
B Short-term investments $3,999,000,000
C Account receivables $3,833,000,000
D Inventories $4,734,000,000
Question 4.2 - Property, Plant and Equipment
Property Plant and Equipment Category Significance
A NA NA
B NA NA
C NA NA
D NA NA
Question 4.3 - How good is the Goodwill
A Does your company report Goodwill? Yes
B What is the value of the Goodwill? $9,710,000,000
C What is the ratio of Goodwill to Total Assets (Goodwill /Total Assets)?
11.51%
D In your opinion why is the ratio of Goodwill to Total Assets significant or insignificant? Increases in the goodwill-to-assets ratio might suggest that a company has been aggressively acquiring other firms or has seen its tangible assets decrease in value. When a large portion of total assets are attributable to intangible assets (such as goodwill), the company may be at risk of having that portion of its asset base wiped out quickly if it must record any goodwill impairment. Decreases in the goodwill-to-assets ratio suggest that the company has either written down some goodwill or increased its tangible assets
E What was the source of the Goodwill? A strong brand name, good customer relations, good employee relations and any patents or proprietary technology
F In your opinion why was the acquisition justified or not justified? I think it was justified based on the nature of Intel's core business which is technology
Question 4.4 - Current Liabilities (In Millions)
Current Liability Category Significance
A Short-term dept. $312 increased by $65 from 2011
B Accrued compensation and benefits $2,972 increased by $24 from 2011
C Accrued advertising $1,015 decreased by $119 from 2011
D Deferred income $1,932 increased by $3 from 2011
Question 4.5 - How much stock is there? (In Millions)
A What is the par value of the common stock? $0.001
B What is the number of shares outstanding? 4,944
C What is the current listed market price for the common stock?
$23.70
D What is the number of common shares authorized?
10,000
E What is the number of treasury shares? $4.3 Billion
Question 4.6 - Who owns the stock?
A How many shares are held by Officers and Directors? What does this tell you? The number of shares held by insider is equal to 4,980,000,000 shares multiplied by the percentage held by insiders which is 0.07%. Therefore, the number of shares held by insiders is 3,486,000 ...
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