Question

I want to analyze the results FOR the activity ratio only of INTEL and the competing company IBM (one page and have or two pages) as soon as possible! thanks

2018 2017 0.56 1.57 3.81 31.76 0.53 1.62 3.78 29.94 -81 1.73 1.30 0.54 1.69 1.29 0.69 Intel Ratio Activity ratio Asset Turnover Fixed Asset Turnover Inventory turnover Days sales in receivable Liquidity Current Ratio Quick Ratio Cash Ratio Profitability ROA ROE Profit Margin gross profit margin ROC Market Price Market to Book (P/B) Price earnings Ratio (P/E) Earnings Yield Price per share Solvency Ratios (leverage) Debt ratio Debt to Equity ratio Interest coverage levearge Interest burden 18.56% 29.33% 32.91% 61.73% 20.94% 15.26% 13.37% 28.76% 62.30% 17.06% 2.88 10.41 9.80% 46.64 3.05 22.49 4.56% 44.75 0.42 0.34 49.82 1.72 0.99 0.44 0.36 27.94 1.79 0.96

Answer 1

Let's compare the both the ratio

Asset Turnover ratio indicate that companies ability to utilised its Assets to generate sales revenue. higher the ratio indicate high efficiency

Intel has asset turnover ratio of 0.56 in 2018 as compared to 0.53 in 2017

while IBM has asset turnover ratio of 0.64 in 2018 as compared to 0.6518 in 2017

In 2018 Intel has increase his efficiency as compared to 2017 however for both the year asset utilised by IBM is more.

The fixed asset turnover ratio reveals how efficient a company is at generating sales from its existing fixed assets.

Intel has Fixed asset turnover ratio of 1.57 in 2018 as compared to 1.62 in 2017

while IBM has asset turnover ratio of 2.46 in 2018 as compared to 2.53 in 2017

For the year IBM has good Fixed Asset turnover ratio as compared to Intel.

Inventory turnover indicates that for a particular period how many times a company sells and replaces its stock of goods .

Intel has Inventory turnover ratio of 3.81 in 2018 as compared to 3.78 in 2017

while IBM has asset turnover ratio of 26.13 in 2018 as compared to 26.91 in 2017

Here We can see that as compared to IBM inventory turnover ratio in Intel is very low. It may be possible that such low is due to company has maitaining low level of stock

Receivable days has indicate that withing how many days debtors balance is realized. If the number is low then it indicate good sign

Intel has Receivable days ratio of 31.76 days in 2018 as compared to 29.94 days in 2017

while IBM has Receivable days ratio of 37.51 in 2018 as compared to 41.76 in 2017