Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 45.51

+10.7%

Jan 9 9:30 AM EST

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To: GVTucker who wrote (178609)	7/14/2004 9:30:43 AM
From: rkral	Read Replies (1) of 186894

GVTucker, re "A lot of that excellent gross margin is imbedded in that inventory. If Intel had been a little better in managing their inventory, they wouldn't have made the quarter. " Your comment is similar to another's I've seen recently ... and both have me scratching my head. Obviously, there's something about inventory accounting I don't understand. Therefore, I would appreciate your answer to the following. Gross margin is sales (revenues) minus cost of goods sold. To increase gross margin .. either revenues must increase or cost of goods sold must decrease. How can production of goods "shipped" to inventory do either? TIA, Ron

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