Ratio analysis—comprehensive problem, 2008 data This problem is based on the 2008 annual report of Intel Corporation in the appendix.
Required:
a.Compute the following profitability measures for the year ended December 27, 2008:
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 $14.18 as the year-end market price.
4. Dividend yield.
5. Dividend payout ratio.
b. Compute the following liquidity measures at December 27, 2008:
1. Working capital.
2. Current ratio.
3. Acid-test ratio.
c. Compute the following activity measures for the year ended December 27, 2008:
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 financial leverage measures at December 27, 2008:
1. Debt ratio.
2. Debt/equity ratio.
e. Compute the following physical measures of Intel’s profitability at December 27, 2008:
1. Net revenues per employee.
2. Operating income per employee. (Hint: The number ofemployees at year-end is disclosed on page 685 of the Intel annual report in the appendix.)
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