Financial Statement Analysis : The Balance Sheet

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Financial Statement Analysis

The balance sheet for my company, Intel, has provided the financial position for the past few years. The information provided by the balance sheet shows that Intel Corporation has many assets. These are things that the company owns and the assets are also considered the resources of the company. The resources have been acquired through transactions that have been made between certain dates. Intel’s assets include, cash and cash equivalents, which have been on the rise. However cash and cash equivalents are just one factor of the company’s assets. All together the total current assets have been declining, and rising. In September of 2014 the total current assets were at 27,509,000 and it declined until
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As of June 2015 that number has dropped to 3,440,000, which is bad because that means that, the changes in inventories and liabilities has decreased. These numbers are in millions, so when the numbers change this dramatically, it means something happened. For cash flow sales, the higher the number, the better. For the operation index, the higher the percentage, the better. For the operating cash flow ratio, if the ratio falls below 1.00 then the company is not bringing in enough sales and cash. They will have to find additional sources to finance their operations if they wish to continue their business. For a company as large as Intel, it would not be so challenging to do so.
Ratio Analysis

ROE
The Return on Equity (ROE) for my company is 20.27% and has been mostly decreasing within the past five years. Compared to one of Intel’s many competitors, Microchip Technology Inc. (MCHP), their Return on Equity is currently 19.2% and has been jumping from high to low numbers these past few years. A return on equity of 20% is considered excellent, so as of currently it appears that my company is in good standings with their ROE. Intel’s competitor MCHP is also in good standings as their ROE is almost at 20% as well. From the data that we are given from the two companies we can tell that they are in good standings. The information is telling us that the management has been performing well.
ROA
The Return on Assets (ROA)
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