Ratio analysis-comprehensive problem, 2006 data
This problem is based on the 2006 annual report of Intel Corporation in the appendix.
Required:
a. Compute the following pro?tability measures for the year ended December
30, 2006:
1. Return on investment, based on net income (perform a DuPont analysis).
2. Return on equity, based on net income.
3. Price/earnings ratio. Use $20.25 as the year-end market price.
4. Dividend yield.
5. Dividend payout ratio.
b. Compute the following liquidity measures at December 30, 2006:
1. Working capital.
2. Current ratio.
3. Acid-test ratio.
c. Compute the following activity measures for the year ended December 30,
2006:
1. Number of days' sales in accounts receivable, based on a 365-day year.
2. Number of days' sales in inventory, based on a 365-day year.
3. Accounts receivable turnover.
4. Inventory turnover.
5. Turnover of net property, plant, and equipment.
d. Compute the following ?nancial leverage measures at December 30, 2006:
1. Debt ratio.
2. Debt/equity ratio.
3. Times interest earned.
e. Compute the following physical measures of Intel's pro?tability at December 30, 2006:
1. Net revenues per employee.
2. Operating income per employee.