Question

Two companies.. Intel and Advanced Micro Devices (ADM). GO pull their financial statements and lets talk about the following ratios.. I want you to do ONE Ratio, and explain what it means between the two companies (and show the calc and your work)..

For each of the four years of statements, compute the following ratios for each firm:

Valuation Ratios Price-Earnings Ratio (for EPS use Diluted EPS Total) Market-to-Book Ratio Enterprise Value-to-EBITDA (For debt, include long-term and short-term debt; for cash, include marketable securities.) Profitability Ratios Operating Margin (Use Operating Income after Depreciation) Net Profit Margin Return on Equity Financial Strength Ratios Current Ratio Book Debt-Equity Ratio Market Debt-Equity Ratio Interest Coverage Ratio (EBIT ÷ Interest Expense)

Answer 1

Valuation Ratios Price-Earnings Ratio (for EPS use Diluted EPS Total) Market-to-Book Ratio Enterprise Value-to-EBITDA (For debt, include long-term and short-term debt; for cash, include marketable securities.) Profitability Ratios Operating Margin (Use Operating Income after Depreciation) Net Profit Margin Return on Equity Financial Strength Ratios Current Ratio Book Debt-Equity Ratio Market Debt-Equity Ratio Interest Coverage Ratio (EBIT ÷ Interest Expense)