Corporate Finance Project

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Table of Contents
Introduction .................................................................................................................4
Operations ....................................................................................................................4
Geographic Reach ........................................................................................................6
Sales and Marketing ....................................................................................................6
Financial Performance ...............................................................................................7
Strategy .........................................................................................................................7
Mergers and Acquisitions...........................................................................................8
Company Background.................................................................................................9
Financial Ratios ........................................................................................................ 11
A. Intel Liquidity Ratio .......................................................................................... 11
B. Intel Profitability Ratio .................................................................................... 12
C. Intel Utilization Ratio........................................................................................ 13
Financial Projection ................................................................................................. 15
A. Pro forma Income Statement........................................................................... 15
B. Pro forma Balance Sheet .................................................................................. 17
Investment Decision ................................................................................................ 21
Appendix ................................................................................................................... 22
A. Income Statement ............................................................................................. 22
B. Statement of Financial Position ...................................................................... 22
C. Industry Average Table .................................................................................... 24
Reference................................................................................................................... 25

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 Part One
Introduction

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Introduction
Intel Corp. is one of the computer chip companies, Intel offers platform products that
incorporate various components and technologies, including a microprocessor and
chipset, a stand-alone SoC, or a multichip package. It has dominated the PC chip market
processors such as Intel Core processor family and the Intel Quark, Intel Atom, Celeron,
Pentium, Intel Xeon, and Itanium trademarks make up its CPU brands. Intel also includes
autonomous cars and small low-power devices as well as a broad range of solutions
targeting the data center, wireless, networking, military, medical, and industrial market
segments. The company's latest data center solutions target a wide range of use cases
within cloud computing, network infrastructure, and intelligent edge applications, and
support high-growth workloads, including AI and 5G. In addition, Intel Corp. exited 5G
smartphone modem business to increase the focus of its 5G efforts on the broader
opportunity to modernize network and edge infrastructure. Intel was founded in 1968.
The China, including Hong Kong, is the company's largest market accounting to nearly
30% of the company's total sales.

Operations

The company manages its business through these operating segments: Client Computing
Group (more than 50%), Data Center Group (nearly 35%), Internet of Things Group
(around 5%), Non-Volatile Memory Solutions Group (more than five percent),
Programmable Solutions Group (less than five percent), and All other (nearly one
percent).

DCG and CCG are the reportable operating segments. IOTG, Mobileye, NSG, and PSG
do not meet the quantitative thresholds to qualify as reportable operating segments;
however, it was elected to disclose the results of these non-reportable operating segments.
The Internet of Things portfolio, presented as Internet of Things, is comprised of the
IOTG and Mobileye operating segments.

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Intel Corp.'s Client Computing Group is the company's workhorse. The business includes
platforms designed for end-user form factors, focusing on higher growth segments of 2-
in-1, thin-and-light, commercial and gaming, and growing adjacencies such as
connectivity, graphics, and memory.

The Data Center Group develops workload-optimized platforms for compute, storage,
and network functions. It also makes chips for server-platforms and related products
designed for the enterprise, cloud, government, and communication infrastructure
markets.

The Internet of Things Group develops high-performance compute for targeted verticals
and embedded markets. The customers include retailers, manufacturers, healthcare
providers, energy companies, automakers, and governments. In addition, Mobileye is the
global leader in the development of computer vision and machine learning-based sensing,
data analysis, localization, mapping, and driving policy technology.

The Programmable Solutions offers programmable semiconductors, primarily FPGAs,

structured ASICs, and related products, for a broad range of market segments, including
communications, data center, industrial, and military.

Non-Volatile Memory Solutions offers memory and storage products.

Intel makes most of its products in its own manufacturing facilities, which allows the
company to control the process for quality, speed, and flexibility. For some
communications, connectivity, networking, field programmable, and memory
components the company outsources manufacturing to third parties. Intel handles test and
assembly in-house and through contractors.

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Geographic Reach

Intel Corp. is based in California and has more than 100 locations around the globe with
three assembly and test facilities in China, Malaysia, and Vietnam and six water
fabrication in Arizona, Oregon, New Mexico, Ireland, Israel and other countries. Sales
are well-distributed geographically with customers in China (including Hong Kong)
generating about 30% of Intel's sales, followed by Singapore and US customers, over
20% each, and customers in Taiwan who kick in nearly 15% of revenue.

Sales and Marketing

Intel sells its products primarily to original equipment manufacturers (OEMs), cloud
service providers and original design manufacturers (ODMs). In addition, Intel products
are sold to makers of industrial and communications equipment.

Its customers also include those who buy PC components and other products through
distributor, reseller, retail, and OEM channels. Intel's worldwide reseller sales channel
consists of thousands of indirect customers, who are systems builders that purchase
microprocessors and other products from distributors. The microprocessors and other
products are also available in direct retail outlets.

Intel's three largest customers account for more than 40% of revenue. They are Dell
Technologies, more than 15% of sales, and Lenovo Group (nearly 15%) and HP Inc.,
with around 10%.

Advertising costs, including direct marketing, recorded within MG&A expenses were
$832 million in 2019, $1.2 billion in 2018, and $1.4 billion in 2017.

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Financial Performance

Intel has posted company-record revenue in each of the past four years as it has
maintained revenue from computer-related products and sales of its lineup of newer
products for data centers and cloud computing have grown.

In 2019, the company's revenue totaled $72 billion, a 2% increase from 2018.

Intel's profit declined less than a percentage. It totaled around $21 billion in 2019.

Intel's coffers held $4.2 billion in cash and equivalents in 2019, about $1.2 billion more
than in 2018. Operations generated $33.1 billion in 2019, while investing and financing
activities used $14.4 billion and $17.6 billion, respectively.

Strategy

Intel deploys various forms of capital to execute its strategy in a way that seeks to reflect
its corporate values, help customers succeed, and create value for stakeholders.

Leveraging cash flow to invest in itself and grow its capabilities, supplement and
strengthen its capabilities through acquisitions and strategic investments, and provide
returns to stockholders.

Investing significantly in R&D and IP to ensure that the company's process and product
technologies are competitive in its strategic pursuit of making the world's best
semiconductors and realizing data-centric opportunities.

Investing timely and at a level sufficient to meet customer demand for current
technologies and prepare for future technologies.

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Developing the talent needed to remain at the forefront of innovation and create a
diverse, inclusive, and safe workplace.

Building trusted relationships for both Intel and its stakeholders, including employees,
suppliers, customers, local communities, and governments.

Continually striving to reduce its environmental footprint through efficient and

responsible use of natural resources and materials used to create products.

Mergers and Acquisitions

In 2020, Intel acquires Camberwell, London-based, Rivet Networks and joins the
Wireless Solutions Group within the Client Computing Group. Rivet Networks' key
products, including its Killer brand, will integrate into Intel's broader PC Wi-Fi portfolio.
This partnership will Boost Intel's Wi-Fi offerings for PC platforms Terms were not
disclosed.

Intel acquires Moovit for approximately &900 million to enhance the daily mobility
habits and needs of millions of Moovit users with the state-of-the-art, safe, affordable and
eco-friendly transportation enabled by self-driving vehicles. Moovit is headquartered in
Israel and is known for its urban mobility application that offers travelers around the
world the best multimodal trip planning by combining public transportation, bicycle and
scooter services, ride-hailing, and car-sharing.

In 2019 Intel bought the Smart Edge software business from Toronto-based, Pivot
Technology Solutions for $27 million to aid in Intel's development of chips for the 5G
mobile network market. Smart Edge software helps split up information and store it

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closer to users to make computing devices respond faster. The software is designed to run
on Intel's chips.

Intel agreed to acquire Caifornia-based, Barefoot Networks in 2019 to beef up its

offerings for cloud computing applications. Barefoot designs and make chips that manage
communication via Ethernet, which is used to connect networked computers and servers.
Barefoot's products fill a gap in Intel's portfolio and could help it compete more
effectively against Broadcom, the foremost product of such devices.

In 2019 Intel acquired UK's Omnitek, a provider of video and vision for programmable
processors that enable customized vision and artificial intelligence. Terms of the deal
were not disclosed.

Intel acquired Ineda Systems, a fabless chip company, in 2019. Ineda's chips are used in
autonomous driving, artificial intelligence, and the Internet of Things. The company is
based in Hyderbad, India, where Intel plans to put a technology development center.

Company Background

The founding of Intel is one of the legendary stories of Silicon Valley. In 1968 three
engineers from Fairchild Semiconductor created Intel in Mountain View, California, to
develop technology for silicon-based chips. ("Intel" is a contraction of "integrated
electronics.") The trio consisted of Robert Noyce (who co-invented the integrated circuit,
or IC, in 1958), Gordon Moore, and Andy Grove.

Intel initially provided computer memory chips such as DRAMs (1970) and EPROMs
(1971). These successes funded the microprocessor designs that revolutionized the
electronics industry. In 1971 Intel introduced the 4004 microprocessor, promoted as "a
micro-programmable computer on a chip."

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 Part Two
Financial Ratios

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 Financial Ratios
Short---term Liquidity Dec 29, Dec 30, Dec 31, Dec 26, 4 Years Industry Average
2018 2017 2016 2015
Current ratio 1.73 1.69 1.75 2.58 2.385
Quick ratio 1.11 1.13 1.07 1.92 1.665
Cash ratio 0.70 0.80 0.84 1.62 0.8025
Gearing
Debt to equity 0.35 0.39 0.38 0.37 0.515
Debt to assets 0.21 0.22 0.22 0.22 0.48
Coverage Ratios
Interest coverage 50.82 32.50 18.65 43.17 36.285
Utilization
Inventory turnover 3.74 3.39 4.18 4.00 4.72
Receivables turnover 10.54 11.19 12.66 11.56 7.84
Average inventory processing 98 108 87 91 77.25
period
Average receivable collection 35 33 29 32 46.5
period
Profitability
Gross profit margin 61.73% 62.25% 60.94% 62.65% 0.3465
Net profit margin 29.72% 15.30% 17.37% 20.63% 0.20755
Return on equity (ROE) 28.24% 13.91% 15.58% 18.70% ---0.02075
Return on assets (ROA) 16.45% 7.79% 9.10% 11.08% ---0.00325

A. Intel Liquidity Ratio

In the short term Intel liquidity is facing some difficulties in easing assets to converted
into ready cash and covering its obligation in short run, as current ratio was 2.5 times in
2015 which above industry average but after then it decreased until it reached 1.73 times
in 2018 which less than industry average 2.38 which indicate that Intel faces some issues
in covering its current liabilities from current assets, thus it means Intel has problem
either in selling inventory or not able collect receivables from their customer. Therefore
by analyzing quick ratio for four years it turned out hat it had been decreeing not by huge
percentage but it’s below industry average as in 2018 it was 1.11 and industry 1.65 which

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means that Intel is covering its current liabilities from current assets except inventory as
efficient as competitor which indicate huge problem in selling their inventory which will
explained further by analyzing utilization ratios and showing how inventory turnover is
affected while cash ratio have some problems but it’s quiet better than current ratio and
quick ratio as cash ratio is diminishing but it is close to industry average as in 2018 is 0.7
and industry is 0,8.
To sum up Intel Short term liquidity is facing some problems to cover its obligations, as
according to liquidity analysis the problem rely on how firm is selling their inventory as
they are as efficient as other competitors

On the other hand, long term liquidity for Intel is breath taking as amount of debt is
almost constant taking debt to equity started from 37% in 2015 till 35% in 2018 while
industry average is 51% and same apply for debt to asset started from 22% in 2015 till
21% in 2018 while industry is 48% which mean that amount of debt used to finance their
operation is below average industry taking into consideration interest coverage as in 2015
it was 43 and in 2018 was 50 while industry is 36 which means that Intel is more efficient
in covering their interest form earning before interest and tax than competitors
In conclusion Intel short term liquidity is struggling to cover their obligation as they are
not efficient as their Competitor in the industry but long term liquidity is beyond efficient
as amount of debt is decreasing and firm ability to cover interest is increasing

B. Intel Profitability Ratio

Intel profitability is very stable and growing it can be spotted only from income statement
without any further investigation compared to their competitors. But by using ratio
analysis techniques it turned out that overall profitability for Intel is growing and more
efficient than their competitors as gross profit margin is almost the same for four years
approximately 62% while industry average is 34%which means that Intel is more
efficient in generating gross margin sales from sales. Secondly, net profit margin is 20%

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in 2015 till it reached 29% in 2018 which is more than 20% compared to industry average
that also means that intel is more efficient in generating net profit margin from sales.
Moreover return on equity sated 18% in 2015 till it reached 28% in 2018 which is more
efficient than -20% for industry average which indicate how strong firm is in generating
ROE. Finally return on assets is 11% in 2015 until it reached 16% in 2018 which is more
than industry average which is -3% that also indicate strong position that firm maintain in
generating returns from their assets

C. Intel Utilization Ratio

Intel Utilization is suffering as it was mentioned before that firm has problem in its
inventory as average days needed to be converted into sales is increasing across years
starting from 91 days in 2015, 108 days in 2017 until it reached 98 days in 2018 which is
higher average industry which is 77 days which means that firm is not efficiently turning
inventory into sales as competitors. Whereas Receivable collection period is not quiet the
same started from 32 in 2015 till 35 days in 2018 despite average days increased but
average industry is 46 days which means that Intel is still more efficient in collecting
their receivables than competitor, that’s explain what Intel is Suffering in their Liquidity
as they have the capability in collecting their money from customers and estimating close
provisions for doubtful debts but on the other hand they have huge problem in their
inventory turn over which is affecting their liquidity
Conclusion
To sum up, the financial position in long run is constant and growing taking long term
liquidity for instance or profitability of firm as they are above average industry but still
there’s a problem in efficiently more precisely in inventory turnover which is affecting
short term liquidity and the ability of firm to meet their long term obligation. Therefore I
recommend that Intel should find an advanced ways and new supply chain system for
their inventory to enhance their liquidity

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 Part Three
Financial Projection

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 Financial Projection

The financial Projection is based on four years average of sales which

is 8.6% and 38% for the cost of sale and the rest is of forecasted is
based on sales of year ended 2018 as follow.

In balance sheet, projection for all items of assets, liabilities and

equity are calculated based on sales of year ended December
2018, taken into consideration that non-current liabilities are
carry over. So they will be the same for forecasted years.

According to analysis based on financial projections in Statement of

financial position it turn out that AFN ≤ 0, then surplus funds will be
used to pay a special dividend of 31,749.

A. Pro-forma Income Statement

Income Statement Dec 29, Factor Bases Without Adjustment With AFN
2018 Forecasted forecast AFN 2019 2019
2019
Net revenue 70,848 8.6% Sales 76,953 76,953
2018
Cost of sales (27,111) 38% Sales 26,922 26,922
2019
Gross margin 43,737 50,031 50,031
Research and 13,543 19.1% Sales 13,531 13,531
development 2019
Marketing, general and 6,750 9.5% Sales 6,730 6,730
administrative 2019

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Restructuring and other 72 0.1% Sales 71 71
charges 2019
Amortization of 200 0.3% Sales 212 212
acquisition---related 2019
intangibles
Operating expenses (20,421) 20,402 20,402
Operating income 23,316 29,629 29,629

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Ongoing mark---to---market 129 0.2% Sales 141 141
adjustments on 2019
marketable equity
securities
Observable price 202 0.3% Sales 212 212
adjustments on non--- 2019
marketable equity
securities
Impairment charges 424 0.6% Sales 425 425
2019
Sale of equity 226 0.3% Sales 212 212
investments and other 2019
Gains (losses) on equity (125) - -0.2% Sales 141 141
investments, net 2019
Interest income 438 Carry Over 438 438
Interest expense (468) Carry over - -468 ---468
Other, net 156 Carry over 156 156
Interest and other, net 126 Carry over 126 126
Income before taxes 23,317 29,628 29,628
Provision for taxes 2,264 3.2% Sales 2,267 2,267
2019
Net income 21,053 27,361 27,361
No of Shares 4516 Carry Over 4516 4516
Dividend per share 1.2 0.257407495 1.559543592 1.559543592
Dividends Paid 5419.2 7042.898862 7042.898862
Special Dividends Special 31,749
Dividends
Net income Available for 20,318 ---11,431
common stock

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 B. Pro forma Balance Sheet
Statement of Dec 29, Factor Bases Without Adjustment With AFN 2019
Financial 2018 Forecasted forecast AFN 2019
Position 2019
Cash and cash 3,019 4.3% Sales 3046 3046
equivalents 2019
Short---term 2,788 3.9% Sales 2763 2763
investments 2019
Trading assets 5,843 8.2% Sales 5809 5809
2019
Accounts 6,722 9.5% Sales 6730 6730
receivable, net of 2019
allowance for
doubtful accounts
Inventories 7,253 10.2% Sales 7226 7226
2019
Deferred tax —
assets
Assets held for —
sale
Other current 3,162 4.5% Sales 3188 3188
assets 2019
Current assets 28,787 28762 28762
Property, plant 48,976 69.1% Sales 48955 48955
and equipment, 2019
net
Marketable equity 1,440 2.0% Sales 1416 1416
securities 2019
Non---marketable 2,978 4.2% Sales 2975 2975
equity securities 2019
Equity method 1,624 2.3% Sales 1629 1629
investments 2019
Equity 6,042 8.5% Sales 6022 6022
investments 2019
Other long---term 3,388 4.8% Sales 3400 3400
investments 2019
Goodwill 24,513 35% Sales 2496 2496
2019
Identified 11,836 17% Sales 12044 12044
intangible assets, 2019
net
Non---current 1,122 1.6% 1134 1134

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deferred tax
assets
Pre---payments for 1,507 2.1% Sales 1487 1487
property, plant 2019
and equipment
Loans receivable 479 0.7% Sales 495 495
2019
Other 1,313 1.9% Sales 1346 1346
2019
Other long---term 4,421 6.2% Sales 4392 4392
assets 2019
Long---term 99,176 87791 87791
assets
Total assets 127,963 116,553 116,553
Short---term debt 1,261 1.8% Sales 1275 1275
2019
Accounts payable 3,824 5.4% Sales 3825 3825
2020
Accrued 3,622 5.1% Sales 3613 3613
compensation 2021
and benefits
Deferred income —
Liabilities held for —
sale
Other accrued 7,919 11.2% Sales 7934 7934
liabilities 2019
Current 16,626 16647 16647
liabilities
Long---term debt 25,098 Carry Over 25,098 25,098
Contract 2,049 Carry Over 2,049 2,049
liabilities
Income taxes 4,897 Carry Over 4,897 4,897
payable, non---
current
Deferred income 1,665 Carry Over 1,665 1,665
taxes
Other long---term 2,646 Carry Over 2,646 2,646
liabilities
Long---term 36,355 36,355 36,355
liabilities
Total liabilities 52,981 53,002 53,002
Temporary equity 419 419 419

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Preferred stock, —
$0.001 par value;
none issued
Common stock, 25,365 Carry Over 25,365 25,365
$0.001 par value,
and capital in
excess of par
value
Accumulated (974) Carry Over (974) (974)
other
comprehensive
income (loss)
Retained earnings 50,172 70,490.00 38,740.99
Stockholders’ 74,563 95,300.00 63,550.99
equity
Total liabilities, 127,963 116,553
temporary 148,302.00
equity, and
stockholders’
equity

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 Part Five
Investment Decision

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Investment Decision
A. The estimation of rate of return using Capital Asset Price Model

Risk Free
Rate of return on Treasury Bills Rate 2.67%
Risk
Expected rate of return on market portfolio Premium 10.0%

Systematic risk (β) of Intel Corp.’s common stock Beta for Intel 0.87

Expected
Expected rate of return on Intel Corp.’s common stock Rate of Return 11.4%

Expected rate of return=2.67%+10%*0.87=11.4%

B. Calculation For Price Today

Item 2018 2016

Shares 4516 4687
DPS 1.2 1.04
Growth 4.80%

D1 7042.898862 4516

Price Today 23.74

Stock Price At 31---12---2018(Monday) 46.93
- -Sell the
Conclusion stock.

The Estimation was by arithmetic method by estimating three years dividends as

Dividend per share was 1.04 in 2016 and 1.2 in 2018, therefore (1.2/1.04)^1/3 -1=
4.8% growth
Price of price today using Gordon Growth model: (7042/(11.4%-4.8%)= 23.74
By comparing expected price by Gordon model and actual price at 31 December
2018 which was 46.93 it turnout the best investment decision for investor is sell
the stock as expected price is less than actual price which means it’s overpriced

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 Appendix

A. Income Statement

Income Statement Dec 28, Dec 29, Dec 30, Dec 31, Dec 26,
2019 2018 2017 2016 2015
Net revenue 71,965 70,848 62,761 59,387 55,355
Cost of sales (29,825) (27,111) (23,692) (23,196) (20,676)
Gross margin 42,140 43,737 39,069 36,191 34,679
Research and development (13,362) (13,543) (13,098) (12,740) (12,128)
Marketing, general and administrative (6,150) (6,750) (7,474) (8,397) (7,930)
Restructuring and other charges (393) 72 (384) (1,886) (354)
Amortization of acquisition---related intangibles (200) (200) (177) (294) (265)
Operating expenses (20,105) (20,421) (21,133) (23,317) (20,677)
Operating income 22,035 23,316 17,936 12,874 14,002
Ongoing mark---to---market adjustments on 277 (129) — — —
marketable equity securities
Observable price adjustments on non---marketable 293 202 — — —
equity securities
Impairment charges (122) (424) (833) (187) (185)
Sale of equity investments and other 1,091 226 3,484 693 500
Gains (losses) on equity investments, net 1,539 (125) 2,651 506 315
Interest income 483 438 441 222 124
Interest expense (489) (468) (646) (733) (337)
Other, net 490 156 (30) 67 108
Interest and other, net 484 126 (235) (444) (105)
Income before taxes 24,058 23,317 20,352 12,936 14,212
Provision for taxes (3,010) (2,264) (10,751) (2,620) (2,792)
Net income 21,048 21,053 9,601 10,316 11,420

B. Statement of Financial Position

Statement of Financial Position Dec 28, Dec 29, Dec 30, Dec 31, Dec 26, 2015
2019 2018 2017 2016
Cash and cash equivalents 4,194 3,019 3,433 5,560 15,308
Short---term investments 1,082 2,788 1,814 3,225 2,682
Trading assets 7,847 5,843 8,755 8,314 7,323

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Accounts receivable, net of 7,659 6,722 5,607 4,690 4,787
allowance for doubtful accounts

Inventories 8,744 7,253 6,983 5,553 5,167

Deferred tax assets — — — — 2,036
Assets held for sale — — — 5,210 71
Other current assets 1,713 3,162 2,908 2,956 2,982
Current assets 31,239 28,787 29,500 35,508 40,356
Property, plant and equipment, 55,386 48,976 41,109 36,171 31,858
net
Marketable equity securities 450 1,440 4,192 6,180 5,960

Non---marketable equity securities 3,480 2,978 2,613 3,098 2,933

Equity method investments 37 1,624 1,887 1,328 1,590

Equity investments 3,967 6,042 8,692 10,606 10,483

Other long---term investments 3,276 3,388 3,712 4,716 1,891

Goodwill 26,276 24,513 24,389 14,099 11,332

Identified intangible assets, net 10,827 11,836 12,745 9,494 3,933

Non---current deferred tax assets 1,209 1,122 840 907 600

Pre---payments for property, plant 1,641 1,507 714 347 623

and equipment

Loans receivable 554 479 860 236 642

Other 2,149 1,313 688 1,243 1,347
Other long---term assets 5,553 4,421 3,102 2,733 3,212

Long---term assets 105,285 99,176 93,749 77,819 62,709

Total assets 136,524 127,963 123,249 113,327 103,065
Short---term debt 3,693 1,261 1,776 4,634 2,634
Accounts payable 4,128 3,824 2,928 2,475 2,063
Accrued compensation and 3,853 3,622 3,526 3,465 3,138
benefits
Deferred income — — 1,656 1,718 2,188
Liabilities held for sale — — — 1,920 56
Other accrued liabilities 10,636 7,919 7,535 6,090 5,588
Current liabilities 22,310 16,626 17,421 20,302 15,667

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Long---term debt 25,308 25,098 25,037 20,649 20,036
Contract liabilities 1,368 2,049 — — —
Income taxes payable, non--- 4,919 4,897 4,069 — —
current
Deferred income taxes 2,044 1,665 3,046 1,730 2,539
Other long---term liabilities 2,916 2,646 3,791 3,538 2,841
Long---term liabilities 36,555 36,355 35,943 25,917 25,416
Total liabilities 58,865 52,981 53,364 46,219 41,083
Temporary equity 155 419 866 882 897
Preferred stock, $0.001 par value; — — — — —
none issued
Common stock, $0.001 par value, 25,261 25,365 26,074 25,373 23,411
and capital in excess of par value

Accumulated other (1,280) (974) 862 106 60

comprehensive income (loss)

Retained earnings 53,523 50,172 42,083 40,747 37,614

Stockholders’ equity 77,504 74,563 69,019 66,226 61,085
Total liabilities, temporary 136,524 127,963 123,249 113,327 103,065
equity, and stockholders’ equity

C. Industry Average Table

inancial ratio 2018 2017 2016 2015 Four years Average

olvency Ratios
Debt ratio 0.49 0.5 0.48 0.45 0.48
Debt---to---equity ratio 0.56 0.59 0.5 0.41 0.515
nterest coverage ratio 1.58 1.5 1.47 1.62 1.5425
iquidity Ratios
urrent Ratio 2.31 2.36 2.3 2.57 2.385
Quick Ratio 1.45 1.71 1.66 1.84 1.665
ash Ratio 0.71 0.79 0.78 0.93 0.8025
rofitability Ratios
rofit margin 0.70% 0.10% ---0.10% 0% 0.00175
ROE (Return on equity), after tax 0.40% - -3 % ---4% - -1.70% - -0.02075
ROA (Return on assets) 0.70% - -0.60% ---0.80% - -0.60% - -0.00325
Gross margin 36.70% 34.80% 33.70% 33.40% 0.3465

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Activity Ratios
Asset turnover (days) 393 398 383 375 387.25
Receivables turnover (days) 46 47 47 46 46.5
nventory turnover (days) 78 77 78 76 77.25
rice Ratios
Dividend Payout Ratio 0.12 0.21 0.25 0.11 0.1725

Reference
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Sales 2018 1000000 factor forecasted 20% forecasted sales 2019 = 1000000+120%
Sales 2019= 1000000+ 1000000*20% =1200000

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