Dear Dim Robert:
You should take a look at your silly argument first! You claimed that Assets under reported their value. I showed you that if anything they over reported it. Your statement was proven false, and now, you forget that you were wrong. Basically earnings raises Capital (Equity in shares).
For the last six months Intel's shareholder equity declined. Thus, they truly did not earn money but, lost money. They used various accounting tricks to show they made money but, the bottom line is that between acquisitions, other businesses, IAG, and investments, they lost money for the last 6 months. AMD made money in those six months.
First you stated that TSE is irrelevant. I proved that to be incorrect. Then you stated that its change was not relevant either. Well there are two lines in TSE for Intel on their balance sheet, one is par value of the stock, and the other is other stockholder equity (retained earnings). Retained earnings is cumulative earnings since the company was founded. If earnings go out via dividends, they are no longer retained and are counted as an expense (reduces earnings). It is a big (done on purpose) fact that Total Assets minus Total Liabilities minus Total Capital must always equal zero. That is why it is called a "Balance Sheet". The double entry system has been used to find errors for a very long time.
Evidently you would fail basic accounting at this time. More study of relevant texts is required before you make ignorant statements like you did. The one nice thing about telling a stupid machine how to manipulate numbers in order to do accounting, is that you must learn how to do it yourself (at least the good ones must learn it) to keep from making these fundamental errors. Computers, those stupid machines, do exactly what you say, not what you meant. That simply means that a small amount of time is required to make a big mess. So not only did I learn how to do it but, why it is done that way. Try learning why as well as how, you might save yourself a lot of troubles in the future.
Pete |
