John:
Re:
Paul, are your pension checks coming late? Here's some embarrassing info about Intel's huge Accounts Payable:
...........................................................AMD......Intel
Cash balance:..................................1,596.....10,058
Q1 operating expenses....................1,022.......5,375
Accounts payable:..............................377........5,398
AP, % of 3m operating expenses:......37%......100%>\
I hope you don't charge a fee for your accounting expertise. You should have noticed that Intel's line item of $5,398 is Accounts Payable and Accrued Liabilities. The similar line item (AP + Accrued Liabilities) taken from AMD's balance sheet would be $795, not $377 as you reported. Thus, your calculated % is incorrect also.
With a little analysis you also could have noticed that Intel's AP + Accrued Liabilities, as a percentage of total assets (i.e. common size analysis), at 12/30/00 was 13.2%, vs. 10.4% at 12/25/99. At the end of Q1, 2001, this percentage was back down to 11.7%, so it's improving. AMD's similar common size ratio for 12/31/00 was...drum roll please...16.1% vs. 17.2% at 12/26/99. At the end of Q1, 2001, AMD's percentage was also back down to 13.2%, also improving.
What's this prove? Not much. Other than pointing out some of your accounting errors, it shows that AMD's and Intel's Accounts Payable and Accrued Liabilities, on a common size basis, are similar, and have improved in Q1 '01 vs. Q4 '00.
Adam |
