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 optimizing platforms that integrate digital technologies. 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. The company’s ability and willingness to serve shareholders and increase profitability in difficult times is vital for survival. 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. This is a critical aspect of an organization’s operations. It measures the company’s ability to meet its current financial needs.
Current Ratio (CR), is the sum of all current assets and current liabilities.
(Current assets – Inventory)/Current liabilities = Quick Ratio
2012 = 31,358/12,898 2013 = 32,084/13,558 = 2.43 = 2.37
The 2012 Quick Ratio was: (31.358 – 4,734)/12.898 (2013) = (32.2084 – 4,172)/13.568 = 2.06 = 2.06
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. Total liabilities are divided by total shareholder equity to calculate the debt-to-equity ratio. The total amount of debt divided by the 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%
In 2013, the Gross Profit Margin was 12,611/31.521 2011, which is 17,781/33.757 s =40% = 52.67%
For 2012, the Gross Profit Margin was 14,873/33.151 = 44.86%
For 2012, the Net Profit is (53.341 – 18.513)/53.341 = 65.29 Percent.