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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (79080)	5/2/2002 10:11:43 AM
From: niceguy767	Read Replies (1) \| Respond to of 275872

John: "The numbers don't lie." Don't they??? INTC: revenues/shareholder's equity = 26.5/35.8 AMD: revenues/shareholder's equity = 3.9/3.5

To: Road Walker who wrote (79080)	5/2/2002 12:18:28 PM
From: fyodor_	Read Replies (2) \| Respond to of 275872

John: Intel management gets more revenue and profit from each of it's employee's, they are more productive. No, revenue is an incredibly poor number to use here. Intel has artificially inflated revenues due to its Intel Inside program. Basically, they are taking money with one hand and giving a portion back with the other. Clearly, this is no indication of "efficiency". Only if the two businesses you compared operated in a similar fashion externally could you use revenue / employee as an efficiency estimate. Additionally, you could replace 1 employee with a machine that was vastly more expensive to maintain and still wind up with a higher efficiency. Clearly, this is not the case. Profits would be a much better indicator, although still not a very good one, IMHO, since "profits" in many ways is a lagging indicator. -fyo