Publishing the financial reports every year allows you to evaluate the strengths and weakness of your organization, in particular when it is competing. Intel Technology focuses its efforts on improving digital platforms. This company’s mission is to offer a digital solution that drives the global economy. For measuring the firm’s competitiveness and development, it is important to evaluate the annual reports, which include ratio calculations. A company’s ability to meet shareholders’ needs and maintain increasing profitability is crucial for its survival in a difficult economic and competitive environment. This presentation will discuss the impact of ratio calculations on Intel.
Intel corporation financial ratios
Ratio of liquidity
It measures the ability of a company to pay its debts, as well as margin safety. The liquidity ratio is an important aspect of a company’s operation. It shows the ability of the organisation to fulfill its financial obligations.
The Current Ratio is the ratio of current assets to current liabilities.
(Current assets – Inventory)/Current liabilities = Quick Ratio
2012 = 31,358/12,898 2013 = 32,084/13,558 = 2.43 = 2.37
The Quick Ratio 2012 was: 2012 = (31.358 – 4.734)/12.898 (2013) = (32.084 – 4,172)/13.568 = 2.06 = 2.06
Utilization ratios
Calculating the leverage ratio can help determine how much debt an organization is able to finance. It also helps assess the ability of that organization to repay interest and any other costs. The ability of an organization to meet its obligations in a given timeframe is shown by calculating ratios like Debt to equity or Debt ratio. Divide total shareholder equity by total liabilities to get the debt ratio. Divide total debts by total assets.
(2013) = 34,102/58,256 (2012) = 33,148/51,203 = 0.59 = 0.65.
Debt Ratio (2013) = 13,446/92,358 2012 =13,448/84,351 s = 0.15 =0.16
Ratio Profit to Loss
A vital part of any organization is the profitability ratio. It measures how well assets, equity and liabilities have been used in achieving the ultimate goal (Hajek 2017, 2017). As performance indicators, Gross profit margin (or Net profit margin) is used. Profit Margin =(Revenue-Expenses)/Revenue Gross Profit Margin equals Gross Profit Divided By Net Sales
2013 Net Profit Margin = (52,708 – 19,230) / 52,708 2011 = (53,999-16,280)/53,999 s =63% =69.85%
The Gross Profit Margin for 2013 was 12,611/31.521 2011. =17,781/33.757 s =40% = 52.67%
Gross profit margin for 2012 = 14.873/33.151 = 44.86%
For 2012, the Net Profit is (53.341 – 18.513)/53.341 = 65.29 Percent.
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