The cash build-up too is an assertive move to combat liquidity concerns and build structural soundness to the balance sheet. AMD management implicitly understood that their internal financial condition was threatening to unravel the company with stagnant revenues and bloated expenses. As such the repositioning of AMD to take advantage of new revenue opportunities in their fusion process technology was an important step. Add to this a streamline of operations to improve the income statement, a strengthening of the balance sheet through targeted asset increases and strategic debt reductions; and the result are 2010 financial statements which show AMD "achieved many financial milestones: increasing revenue 20% year-over-year, restructuring the balance sheet, reducing overall debt, improving gross margin and delivering positive adjusted non-GAAP free cash flow" (AMD Annual Report. 2010)
Ratios and Measuring Performance
While external and internal end users often look at the same financial information in different ways: a useful tool for comprehensive analysis are the financial ratios: liquidity, safety, profitability, and efficiency (Missouri Business.net. N.D.) which if "examined over time provide some insight as to how effectively the business is being operated" (Missouri Business.net. N.D.). The investor class may look at liquidity ratios to determine if the company can meet its short-term obligations, while a management team may look extensively at Accounts Receivable turn to ascertain their effectiveness in managing their assets. Ratio analysis takes the depth and breadth of data from the financial statements and provides workable comparison tools for period to period analysis. It is worth noting that executive management as well as investors will utilize certain metrics and data over others however, the common purpose is measuring performance.
AMD's decision to restructure and streamline was in part based on investor concerns of company performance highlighted by net losses and a lagging total stock return as compared to the S&P 500 (AMD Annual Report. 2009). Yet, executive management looked at the company's performance in terms of deterioration in competiveness and product innovation. As such the focus of the...
Accounting and Finance: Financial Statement Analysis Project Intel Corporation is situated in California and is regarded as one of the major innovators and trailblazers in the creation and advancement of technology. Intel was founded in the year 1968 and in the year 1970, the company finalized its initial public offer (IPO) and became a publicly traded company. It trades as INTC in the NASDAQ stock exchange. This project seeks to provide
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
AMD Analysis Advanced Micro Devices (AMD) is a company that has had varying fortunes and outcomes over the years. However, the last few years have been a definite downer for AMD as they are clearly moving in the wrong direction. However, rather than leave it to a quick and witty assertion, the author of this report will add some context and support for that statement. This will come in the form
business, worldwide, profit --profit, score performance progress. While ways a business entity evaluated, common measures financial scope. All businesses understand poorly operations performing times, end pre-determined fiscal time period. AMD Financials AMD, short for Advanced Micro Devices, is notable as it is the single company to be able to withstand some competition to Intel's central processing units. Aside from this product however, AMD produces and sells a wide array of other
AMD Processors AMD (Advanced Micro Devices, Inc.) is a Sunnyvale, California-based semiconductor manufacturer. The Company designs, manufactures and markets digital integrated circuits that are used in desktop and mobile PCs, workstations, servers, communications equipment and consumer electronics. Over the years, AMD has emerged as the only credible competitor to Intel Corp -- and has shipped more than 240 million PC processors worldwide since it was founded in 1969. This Report
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