Intel Analysis
Financial Statement Analysis
The purpose of this paper is to conduct financial statement analysis of a publicly traded company, Intel Corporation. A discussion about the financial health of Intel has the ultimate goal of making recommendations to other investors. Horizontal analysis facilitates the required data for calculating certain ratios. In addition, this paper reports the negative and positive trends seen in Intel’s financial history as well as calculates the current ratio, quick ratio and cash to current liabilities ratio.
Company Overview
Intel Corporation, located in Santa Clara, California, is known as a major leader in technology innovation. In the article “The World’s 2000 Largest Public Companies, (2012)” Intel Corporation is 105 in the semiconductors industry with $35.38billion in sales, $5.04billion in profit and $48.37 in assets, making the market value of the company $114.53billion. Robert Noyce and Gordon Moore founded Intel in 1968 with a vision for semiconductor memory products, and in 1971 that vision was realized with the introduction of the world’s first microprocessor. In 2000, Intel provided the Intel Pentium 4 processor and placed emphasis on wireless computing with Intel Pro/Wireless LAN PC cards (Intel: Timeline, 2012). Intel’s mission statement says “this decade, we will create and extend computing technology to connect and enrich the lives of every person on earth” (Intel: Company Information, 2012).
Although the company holds approximately 80 percent of the market share for microprocessors, the competitive landscape is not without opponents. Top competitors of Intel include Advanced Micro Devices, Inc., Texas Instruments Incorporated and Samsung Electronics Co., Ltd. In the 2011 annual report Intel says “for many years, Advanced Micro Devices, Inc. (AMD) has been our primary competitor in the market segments for platforms used in notebooks and desktops… In smartphones and tablets, we face established competitors such
The purpose of this paper is to conduct financial statement analysis of a publicly traded company, Intel Corporation. A discussion about the financial health of Intel has the ultimate goal of making recommendations to other investors. Horizontal analysis facilitates the required data for calculating certain ratios. In addition, this paper reports the negative and positive trends seen in Intel’s financial history as well as calculates the current ratio, quick ratio and cash to current liabilities ratio.
Company Overview
Intel Corporation, located in Santa Clara, California, is known as a major leader in technology innovation. In the article “The World’s 2000 Largest Public Companies, (2012)” Intel Corporation is 105 in the semiconductors industry with $35.38billion in sales, $5.04billion in profit and $48.37 in assets, making the market value of the company $114.53billion. Robert Noyce and Gordon Moore founded Intel in 1968 with a vision for semiconductor memory products, and in 1971 that vision was realized with the introduction of the world’s first microprocessor. In 2000, Intel provided the Intel Pentium 4 processor and placed emphasis on wireless computing with Intel Pro/Wireless LAN PC cards (Intel: Timeline, 2012). Intel’s mission statement says “this decade, we will create and extend computing technology to connect and enrich the lives of every person on earth” (Intel: Company Information, 2012).
Although the company holds approximately 80 percent of the market share for microprocessors, the competitive landscape is not without opponents. Top competitors of Intel include Advanced Micro Devices, Inc., Texas Instruments Incorporated and Samsung Electronics Co., Ltd. In the 2011 annual report Intel says “for many years, Advanced Micro Devices, Inc. (AMD) has been our primary competitor in the market segments for platforms used in notebooks and desktops… In smartphones and tablets, we face established competitors such
References: Annual Report (2011) Intel 2011 Annual Report, Retrieved from the web at http://www.intc.com/intelAR2011/business/competition/ Cornell, B. (2001). Is the response of analysts to information consistent with fundamental valuation? the case of intel. Financial Management, 30(1), 113-136. Retrieved from http://search.proquest.com/docview/208168321?accountid=32521 Current liabilities, working capital and related ratios. (2014, May 31). Businessline Retrieved from http://search.proquest.com/docview/1530715620?accountid=32521 Ft.com/markets data (2012) retrieved from the web at http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=INTC:NSQ Intel (2012) Retrieved from the web at http://www.intel.com/content/www/us/en/company-overview/company-facts.html Intel Financials and Filings (2012) retrieved from the web at http://www.intc.com/annuals.cfm “Intel inside Apple’s iPhone” (2012) Seeking Alpha, retrieved from the web at http://seekingalpha.com/article/929881-intel-inside-apple-s-iphone Principles of Accounting Volume 1. (2012). San Diego, CA: Bridgepoint Education, Inc. Seeking Alpha (2012) “8 Semiconductor Stocks with Consistently Rising Liquidity”, retrieved from the web at http://seekingalpha.com/article/315628-8-semiconductor-stocks-with-consistently-rising-liquidity “The World’s 2000 Largest Public Companies” (2012) Forbe’s.com Special Report, Retrieved from the web at http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000-United-States_10Rank.html