This problem is based on the 2008 annual report of Intel Corporation.
Requirement 1:
Compute the following profitability measures for the year ended December 27, 2008:
(a)
Return on investment, based on net income (perform a DuPont analysis). (Do not round intermediate calculations and round final answer to 1 decimal place. Omit the “%” sign in your response.)
ROI %
(b)
Return on equity, based on net income. (Round your answer to 1 decimal place. Omit the “%” sign in your response.)
ROE %
(c)
Price/earnings ratio. Use $14.18 as the year-end market price. (Round your answer to 1 decimal place.)
Price/earnings ratio
(d)
Dividend yield. (Round your answer to 1 decimal place. Omit the “%” sign in your response.)
Dividend yield %
(e)
Dividend payout ratio. (Round your answer to 1 decimal place. Omit the “%” sign in your response.)
Dividend payout ratio %
Requirement 2:
Compute the following liquidity measures at December 27, 2008:
(a) Working capital. (Enter your answer in millions. Omit the “$” sign in your response.)
Working capital $ million
(b) Current ratio. (Round your answer to 2 decimal places.)
Current ratio
(c) Acid-test ratio (Round your answer to 2 decimal places.)
Acid-test ratio
Requirement 3:
Compute the following activity measures for the year ended December 27, 2008:
(a)
Number of days’ sales in accounts receivable, based on a 365-day year. (Do not round intermediate calculations and round your answer to 1 decimal place.)
Number of days’ sales days
(b)
Number of days’ sales in inventory, based on a 365-day year. (Do not round intermediate calculations and roundyour answer to 1 decimal place.)
Number of days’ sales days
(c) Accounts receivable turnover. (Round your answer to 1 decimal place.)
Turnover times
(d) Inventory turnover. (Round your answer to 1 decimal place.)
Turnover times
(e) Turnover of net property, plant, and equipment. (Round your answer to 1 decimal place.)
Turnover times
Requirement 4:
Compute the following financial leverage measures at December 27, 2008:
(a) Debt ratio. (Round your answer to 1 decimal place. Omit the “%” sign in your response.)
Debt ratio %
(b)
Debt/equity ratio. (Round your answer to 1 decimal place. Omit the “%” sign in your response.)
Debt/equity ratio %
Requirement 5:
Compute the following physical measures of Intel’s profitability at December 27, 2008:
(a)
Net revenues per employee. (Round your answer to the nearest dollar amount. Enter your answers in thousands of dollars. Omit the “$” sign in your response.)
Net revenues $ per employee
(b)
Operating income per employee. (Hint: The number of employees at year-end is disclosed on the Intel annual report.) (Round your answer to the nearest dollar amount. Enter your answers in thousands of dollars. Omit the “$” sign in your response.)
Operating income $ per employee