Vocabulary and practice of organizational finance

RATIOS ANALYSIS OF INTEL

RETURN ON ASSETS AND EQUITIES : As we analyze we see that there are certain declining trends in different areas of the company , whether it is financially or its overall picture . When we calculate the assets return there is a loss in 2007 as well as in 2006 . The formula by which we calculate the operating profitability of a company is stated as (EBIT /Sales . The Operating profitability /Loss in 2006 was around -10 .58 where as in 2007 it reduces to around -3 .07 which is ultimately not a

profit but a loss . There is no profit earned by the company in the previous two years as we can see the percentage which is negative Although they cover some of their losses in 2007 as the loss was less as compared to previous year

ASSET UTILIZATION : The asset utilization basically represents that how much a company has utilized its assets to earn a good amount of revenue Asset utilization tells what percentages of assets are utilized in terms of revenues . What amount of revenue is earned from the assets in which we invested our money and what is the return we are getting out of it The formula for estimating asset utilization is calculated as (Revenue /Avg times where as in 2007 it was around 0 .57 times

LIQUIDITY : Asset utilization is quite good in year 2006 was 1 .10 where as in year 2007...