SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Intel Corporation (INTC)
INTC 36.20+0.1%Dec 26 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dan3 who wrote (146160)10/28/2001 7:23:59 AM
From: Dave  Read Replies (1) of 186894
 
Dan,

I will post a few concerns that I would have if I was an investor in AMD, but let us compare and contrast with Intel...

Both company's have not provided their cash flow statements, but those should be provided when they release their 10Qs.

Gross Margins:
AMD: 22.43%
Intel: 45.7%
(Remember, the higher gross margins are the better)...

TIE (Times Interest Earned) Ratio, defined by Operating Income (Earnings Before Interest and Taxes, or EBIT) divided by Interest Expense.
AMD: N/A (AMD had negative operating income even when one excluded one time charges...)
Intel: 5.56

This ratio is important since it defines how many times over a corporation can earn its quarterly interest expense. Remember, each Quarter, interest is payable to its debt holders...

Those, imo, are fairly important ratios to determine the relative health of a company. AMD cannot afford to fight a price war with Intel and should not.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext