Dan,
Disregard my previous post....
If one wants to measure the efficiency of capital investment, I would recommend utilizing the Fixed Asset Turnover (FAT)ratio, which is: Sales / Average Fixed Assets
Additionally, the higher the number, the more efficient a company is at utilizing its fixed assets to sell goods.
So I don't have to breakdown the numbers and for simplicity, I will look @ overall revenues, which reflects the overall efficiency...
These number come from both company's repective 10ks on www.freeedgar.com
For Intel,
2000 1999 1998 1997
Revenues 33.726 29.389 26.273
PP&E 15.013 11.715 11.609 10.666
FAT 2.52 2.52 2.36
For AMD,
Revenues 4.644 2.858 2.542
PP&E 5.462 4.938 4.380 3.799
FAT .893 .613 .622
As you can clearly see, Intel's Fixed Asset Turnover ratio is >>> than AMD's FAT ratio, hence by definition of the FAT ratio, Intel is more efficient... |
