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Ratio analysis?comprehensive problem, 2006 data...

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Ratio analysis?comprehensive problem, 2006 data This problem is based on the 2006 annual report of Intel Corporation in the appendix. Required: a. Compute the following pro?tability measures for the year ended December 30, 2006: 1. Return on investment, based on net income (perform a DuPont analysis). 2. Return on equity, based on net income. 3. Price/earnings ratio. Use $20.25 as the year-end market price. 4. Dividend yield. 5. Dividend payout ratio. b. Compute the following liquidity measures at December 30, 2006: 1. Working capital. 2. Current ratio. 3. Acid-test ratio. c. Compute the following activity measures for the year ended December 30, 2006: 1. Number of days? sales in accounts receivable, based on a 365-day year. 2. Number of days? sales in inventory, based on a 365-day year. 3. Accounts receivable turnover. 4. Inventory turnover. 5. Turnover of net property, plant, and equipment. d. Compute the following ?nancial leverage measures at December 30, 2006: 1. Debt ratio. 2. Debt/equity ratio. 3. Times interest earned. e. Compute the following physical measures of Intel?s pro?tability at December 30, 2006: 1. Net revenues per employee. 2. Operating income per employee. (Hint: The number of employees at year-end is disclosed on page 681 of the Intel annual report in the appendix. )

 

Paper#9075 | Written in 18-Jul-2015

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