IN-CLASS EXERCISE: Analyzing Income Statement and CFS

Read over the financial tables given below. After analyzing the tables, decide
which company you would prefer to invest in. Be prepared to give your reason.

Intel Corporation is a semiconductor chip maker. The Company is engaged in

developing advanced integrated digital technology products, primarily integrated circuits,
for industries, such as computing and communications. Its primary component products
include microprocessors, chipsets, wired and wireless connectivity. (hoovers.com)

Intel Corp. INCOME STATEMENT 2008 2007 2006

Revenue ($mil.) 37,586.0 38,334.0 35,382.0
Gross Profit ($mil.) 20,844.0 19,904.0 18,218.0
Operating Income ($mil.) 7,694.0 9,181.0 7,092.0
Total Net Income ($mil.) 5,292.0 6,976.0 5,044.0
EPS 0.92 1.18 0.86
STRENGTHS:

From 2006 to 2008

Revenue increased 6.23%

Gross profit increased 14.41%
Operating Income increased 8.49%
EPS increased 6.98%

WEAKNESSES

Total Net Income only increased 4.92%

 Intel Corp. CASH FLOW STATEMENT Dec08 Dec07 Dec06
Net Operating Cash Flow 10,926.0 12,625.0 10,620.0
Net Investing Cash Flow (5,865.0) (9,926.0) (4,907.0)
Net Financing Cash Flow (9,018.0) (1,990.0) (6,439.0)
STRENGTHS:
From Dec06 to Dec08

Net Operating Cash Flow increased 2 .88%.

Net Investing Cash Flow decreased for 8%.
Net Financing Cash Flow decreased too. And for dramatically 40.01%

WEAKNESSES:
Totally the TCF decreased nearly 5%.
That ’s a bad thing for a company.

Advanced Micro Devices, Inc. is a global semiconductor company with facilities

around the world. The Company offer x86 microprocessors, for the commercial and
consumer markets, embedded microprocessors for commercial, commercial client and
consumer markets and chipsets for desktop and notebook personal computers (PCs),
professional workstations and servers. (hoovers.com)

AMD INCOME STATEMENT 2008 2007 2006

Revenue ($mil.) 5,808.0 6,013.0 5,649.0
Gross Profit ($mil.) 2,320.0 2,262.0 2,793.0
Operating Income ($mil.) (1,980.0) (2,799.0) (17.0)
Total Net Income ($mil.) (3,098.0) (3,379.0) (166.0)
EPS (5.10) (6.06) (0.34)
 STRENGTHS:

From 2006 to 2008

Revenue increased about 2.8%

WEAKNESSES:

Accept for Revenue, everything decreased.

Gross profit decreased about 20%

Operation Income, Total net Income, and EPS were originally minus.

AMD CASH FLOW STATEMENT Dec08 Dec07 Dec06

Net Operating Cash Flow (692.0) (310.0) 1,287.0

Net Investing Cash Flow (27.0) (1,675.0) (4,303.0)

Net Financing Cash Flow 220.0 2,037.0 3,763.0

STRENGTHS:

From Dec06 to Dec08

I think there are not strengths From Dec06 to Dec08.

Net Investing Cash Flow just increased.

WEAKNESSES:

Net Operating Cash Flow and Net Financing Cash Flow decreased.
Net Investing Cash Flow was originally minus.