Prior to beginning work on this assignment, read The Art of Company Valuation and Financial Statement Analysis: A Value Investor’s Guide with Real-Life Case Studies, pages 95-172 and 217-219. Next, review the Intel Annual Report 2013. You will use the annual report to complete the steps listed below.
Part 1: Calculate Ratios
Using the Intel Annual Report, calculate the following financial ratios for all years presented:
Liquidity Ratios (Current and Quick): measures ability to meet cash needs.
Leverage Ratios (Debt to Equity, Debt Ratio): measures extent of financing with debt relative to equity and the ability to cover interest and other fixed charges.
Profitability Ratios (Gross Profit Margin, Net Profit Margin): measures overall performance of organization and efficiency in measuring assets, liabilities and equity.
Part 2: Report Findings
Write a report to the management of Intel. Your report should include your findings from the ratios (liquidity, leverage, and profitability) and your evaluation of the financial health of Intel based on your evaluation. Your report should also include your identification of the strengths and weaknesses of the company and your evaluation of the financial strength of Intel.
In your report,
Add your calculated ratios from Part 1 (i.e., liquidity ratio, leverage ratio, and profitability from the Intel annual report).
Identify strengths and weaknesses of the company by reviewing the analysis of the financial statements and ratios evaluated.
Analyze the financial health of the company based on the annual report.
Compile a financial health report to present to Intel management.
Use at least four scholarly, peer-reviewed, or credible resources in addition to the course text and Intel Annual Report to support your analysis of the financial health of the company
In describing South Africa’s key development challenges; the World Bank (2013) reports that South Africa remains a dual economy with one of the highest inequality rates in the world, poverty remains deeply entrenched in many parts of the country, and widespread exclusion and unemployment remain stubborn challenges on the economic landscape. This description almost mirrors that of the South African government. In the latest report from the Presidency’s Monitoring and Evaluation Department (DPME) notes that when the democratic government took office it inherited a legacy of poverty and an unequitable distribution of income. The policies of Apartheid exclude the majority from labour market participation, serving the purpose of locking black South Africans in the clutches of poverty (DPME, 2014). Given the degree to which Apartheid policies were entrenched, the process of reversing them is at best an incomplete one. Although overall GDP per capita income has risen since 1994, inequality has not followed the same trajectory. At an income level, just over half of the country’s total national income is attributed to the richest 10% of households. On the other end of the spectrum, the poorest 40% account for just over 5% of total income (DPME 2014). The charts below puts South Africa’s inequality in context with a comparison amongst its BRICS peers and give insight into the in-country dynamics of the skewed nature of household income. Figure1 Source: OECD Divided We Stand 2011, Accessed at http://dx.doi.org/10.1787/88893253532 Figure 2 Source: Statistics South Africa, Income and Expenditure Survey 2011/11 In essence, the share of national consumption between the richest and the poorest remains stubbornly stagnant. When using the Gini-coefficient measure, inequality increased from 0.64 in 1995 to 0.69 in 2005, although it did improve to 0.65 in 2010/11 (DPME 2014). The government has responded to the plight of those in the bottom 10 percent of the income distribution pyramid through a social grants system. Although inequality remains high, the democratic government has made some progress towards alleviating poverty. There are numerous studies that propose different methods of measuring poverty. Despite, there is relative acceptance that the absolute number of people living under the poverty line has declined. This is largely attributed to a tax-based redistribution strategy. The graph below extracted from the World Bank’s World Development Indicators confirms this. Figure 3 Source: World Bank. 2007. Development Indicators.>GET ANSWER