Team A+

What do you think of the important factor to be a good company? Of course there are a
lot of things to distinguish between good company and an insolvent enterprise but I
really want to say below is the Revenue, Gross Profit, Operating Income, Total Net Income
and EPS as a tool of measuring stable corp. and an insolvent corp..

I have 2 huge companies to compare each other which company is better to invest. One
is Intel and the other is AMD both of them are global semiconductor company.

First of all, I’d like to compare Revenue of them. Below table is the Revenue and Gross
Profit comparison of two of the company and we can easily find out the thing that what
company we’d like to invest.
Intel Corp. 2008 2007 2006 AMD 2008 2007 2006
Revenue 37,586.0 38,334.0 35,382.0 Revenue 5,808.0 6,013.0 5,649.0
Gross Profit 20,844.0 19,904.0 18,218.0 Gross Profit
(2,320.0 (2,262.0 (17.0)
) )
As you can find Using up table, Intel has grown the Revenue continuously (6% upturn
rate). This can be analyzed in two ways that Intel has controlled their cost to make
semiconductors and they make marvelous Sales Income. This is AMD as well(2% upturn
rate). So we cannot make any mind to invest one of these company.

The differences are coming next under. Gross Profit for Intel has grown since 2006. That
means they sell lots of their product to consumers. Because of this selling they might get
good liquidities to increase their investment or make more products. But AMD’s Gross
Profit has decreased year by year. The situation of AMD is just a contrary concept. So in
Gross Profit, Intel has more benefits to investment.

Next, Let's compare Intel's and AMD's operating income and total net income.
Intel Corp. INCOME STATEMENT 2008 2007 2006
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

First, Intel’s operating income is much higher than AMD. Intel’s 2006 operating income
was 7.092 billion dollars. And in 2008, operating income to 7.694 billion dollars increased
by 8% were whopping.

In contrast, AMD’s 2006 operating income was minus 17 million dollars. Operating
income in 2008, saw minus 19 billion dollars. AMD’s operating income was -11650% off.
AMD's operating income fell more than 10,000 percent. In this situation, invest to AMD is
not a good idea.

Second, Intel’s total net income is higher than AMD. Intel’s total net income in 2006
was 500 million dollars, and in 2008 rose to 520 million dollars. It increased
approximately 4%.

But AMD’s total net income was very bad. In 2006, AMD’s total net income was minus
166 million dollars. And in 2008, AMD’s total net income was minus 3 billion dollars.
AMD’s total net income was -1766% off.

Intel’s and AMD’s operating income and total net income comparison, Intel is in two
parts, both 2006 and 2008 was a record surplus also increased the amount. But AMD’s
operating income and total net income in 2006 was both a deficit. And two years later, in
2008, the deficit did not change and the situation was rather worse.

EPS ($mil.) 0.92 1.18 0.86

Net operating Cash flow 10,926.0 12,625.0 10620.0
 EPS net profit is always greater than the number of average shares. But, difficult to
determine it getting increase. Because the exact number of shares issued unknown. But,
it's profit that net income is always greater.

Although it is no weakness, while we've got is AMD's recently acquired ATI, and Business
areas and further expanded the size of the organization. So, AMD have greater
development potential than Intel. Therefore, Intel had got to inspire greater investment in
technology. Otherwise, Intel will be hard to stop the pursuit of AMD.

Above, -153% of AMD cases have shown that the loss of more than 2.8% of Intel rather
made it profitable. DAR(Decrease in Accounts Receivable) was better pointed than other
option.
Net incomes and depreciation as you can see by looking. And, DI(Decrease in Inventory)
guessed by the high levels.

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)

Intel Corporation's net investing cash flow was reduced 19% for 3 days but AMD’s net
investing cash flow was much better than Intel Corp. They increased 99.37% of their net
investing cash flow. This means AMD made and sold their products more than Intel and
also they made a lot of profit out of Securities Investment. AMD is good at investing.
But AMD has terrible weak point at Net Financing Cash Flow. They did very well at
investing but not financing things. Of course, Intel Corp. has got minus rates on Net
Financing Cash Flow as well but not that much. This mean that Intel borrowed the cash
from banks, and Issued common stock more than AMD. So They have more cash to use
anywhere that they need in the company.

By these informations, I can easily figure which company is more suitable to invest. If I
have to invest one of these company I would choose Intel.