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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (137102)	6/10/2001 6:51:03 PM
From: Dave	Read Replies (1) \| Respond to of 186894

Dan, While you want to take a look at financials, let's compare the Quick ratio of both companies, i.e. (Current Assets - Inventories)/Current Liablities Intel: Current Assets: 18,739 Inventories: 2,652 Current Liablities: 7,387 Quick Ratio: 2.1777 Debt to Assets: 9331/46,249 = 0.2018 Times Interest Earned = EBIT/Interest Exp = 906/12 = 75.5 AMD: Current Assets: 2,881.1 Inventories: 354.6 Current Liablities: 1,161.7 Quick Ratio: 2.1748 Debt to Assets: 6,029,405 /2752769 = 2.1903 TIE ratio = EBIT/Interest Exp. = 167,019/21,645 = 7.7163 As you can see from the numbers, while Intel and AMD have comparable Quick Ratios, AMD is highly leverage compared to Intel. Their D/A ratio is substantially higher to Intels. Additionally, AMD's TIE ratio is substantially lower. Therefore, any downturn or price war will affect AMD greater than Intel. These are basically Liquidity ratios, Dan. For kicks, let's compare CASH to DEBT. Intel: Cash: 2,861 Short term Investments: 7,197 Debt: 9331.0 Cash to Debt: 1.0779 AMD: Cash to Debt: Cash, cash equivalents, and short-term investments: 1.6 Debt: 2.752 Cash to debt: .5814 Look at these numbers Dan, Intel has more than enough money to pay All their debts, both current and longterm. On the other hand, AMD comes up short. What are you going to argue now?