Amd Analysis Revenue Net Income

AMD Analysis

Revenue

Net Income

Current Assets

Total Assets

Current Liabilities

Total Liabilities

Equity

RATIOS

Current Ratio

Return on Assets

Profit Margin

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Debt/Equity

Return on Assets

HTC's hesitancy in doing business with any third party electronics supplier is more than understandable, given the volatility of the industry and of the general economic environment. Ensuring that any partnership formed today will still be contributing to the company's bottom line in the future is an all but impossible task, and yet any substantial investment in a partnership -- as a dependence on a singular supplier for a key components such as that being considered by HTC would create -- would become a major liability of the partner was unable to perform over the medium and long-term. A financial analysis and general assessment of the proposed partner and component supplier, Advanced Micro Devices (AMD), is thus definitely warranted. As the following analysis will show, AMD's current financial standing and record of performance is not stellar, but the company is strong enough to provide a soli and profitable partnership to HTC for the foreseeable future.

AMD's Current Standing and Outlook

AMD is a manufacturer of a variety of technology components for use in computers and other devices, manufacturing primarily for business-to-business sales but also catering to end consumers that have more than the typical level of knowledge and skill when it comes to building computers and utilizing these components (AMD, 2012). With semiconductors and microprocessors making up its core products, AMD was founded in 1969 and has remained a stalwart company in the industry ever since, though it has certainly gone through periods of poorer performance, one of which it appears to be coming out of now (AMD, 2012; Yahoo Finance, 2012). A ratio of the company analysis bears this out.

The company's current ratio feel slightly from 2010 to 2011, driven by both a drop in current assets and a rise in current liabilities, however total liabilities feel dramatically along with an increase in equity (and an attendant drop in the debt/equity ratio), suggesting that this could be due to restructuring of the capital finance structure that the company might be employing (AMD, 2012a). The return on assets and the asset turnover ratios both increased very slightly while the profit margin has held for two years at a respectable seven percent, and all of this essentially points to a company that is quite solidly holding its own, but does not appear poised to engage in any major growth projects or make any headline-grabbing changes in performance any tome soon (AMD, 2012a; Yahoo Finance, 2012). This could actually make AMD an even more ideal partner/supplier for HTC, as it would provide some assurance that AMD would remain committed to the projects it takes on rather than realigning.

The company's stock history tells a somewhat similar story to this brief ratio analysis. After peaking at over forty dollars a share in 2006, the stock price fell dramatically and fairly consistently until bottoming out at just under two dollar per share in 2009 (Yahoo Finance, 2012). Since then, the rice has struggled back to a certain gain, though has largely remained stagnant hovering around eight dollar per share, and it is currently trading at just under seven dollars per share (Yahoo Finance, 2012). This performance does not point to an especially strong company, but again it does not indicate a weak one, and instead shows a company that appears to be succeeding in efforts to stabilize.