Question: I need help with wording so I can submit a video of myself explaining the following. My company that I have chosen is INTEL corp.
I need help with wording so I can submit a video of myself explaining the following. My company that I have chosen is INTEL corp. I have provided the data to base my answers off of below the questions. Thank you in advance for your help.
I will need to Record a two- to three-minute video answering the following questions:
- What are three financial facts that you have determined so far in your work in this course that you believe are critical in determining whether to recommend an investment in this company? Justify your answer.
- At this point, do you think you will end up with a buy, hold, or sell recommendation for your chosen company? Explain your answer.
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| Intel Corp (NMS: INTC) | |||||||
| Company Financials | |||||||
| Income Statement | |||||||
| Exchange rate used is that of the Year End reported date | |||||||
| As Reported Annual Income Statement | |||||||
| Report Date | 12/30/2023 | 12/31/2022 | 12/25/2021 | ||||
| Currency | USD | USD | USD | ||||
| Audit Status | Not Qualified | Not Qualified | Not Qualified | ||||
| Consolidated | Yes | Yes | Yes | ||||
| Scale | Millions | Millions | Millions | ||||
| Net revenue | $ 54,228 | - | - | ||||
| Net revenue | $ 54,228 | $ 63,054 | $ 79,024 | ||||
| Cost of sales | $ 32,517 | $ 36,188 | $ 35,209 | ||||
| Gross margin (loss) | $ 21,711 | $ 26,866 | $ 43,815 | ||||
| Research & development | $ 16,046 | $ 17,528 | $ 15,190 | ||||
| Marketing, general & administrative expense | $ 5,634 | $ 7,002 | $ 6,543 | ||||
| Restructuring & other charges | $ (62) | $ 2 | $ 2,626 | ||||
| Asset impairment charges | $ 45 | - | - | ||||
| Employee severance and benefit arrangements | $ 222 | - | - | ||||
| Litigation charges and other | $ (329) | - | - | ||||
| Operating expenses | $ 21,618 | $ 24,532 | $ 24,359 | ||||
| Operating income | $ 93 | $ 2,334 | $ 19,456 | ||||
| Gains (losses) on equity investments, net | $ 40 | - | - | ||||
| Ongoing mark-to-market adjustments on marketable equity securitie | $ (36) | $ (787) | $ (130) | ||||
| Observable price adjustments on non-marketable equity securities | $ 17 | $ 299 | $ 750 | ||||
| Share of equity method investee gains (losses), net | $ (214) | - | - | ||||
| Impairment charges | - | $ (190) | $ (154) | ||||
| Sale of equity investments & other gains & losses on equity investments | - | $ 4,946 | $ 2,263 | ||||
| Gains (losses) on equity investments, net | - | $ 4,268 | $ 2,729 | ||||
| Interest income | $ 1,335 | $ 589 | $ 144 | ||||
| Interest expense | $ 878 | $ 496 | $ 597 | ||||
| Other interest & income (expense), net | $ 172 | $ 1,073 | $ (29) | ||||
| Interest & other income (expense), net | $ 629 | $ 1,166 | $ (482) | ||||
| Income (loss) before income taxes - U.S. | - | $ (1,161) | $ 9,361 | ||||
| Income (loss) before income taxes - Non-U.S. | - | $ 8,929 | $ 12,342 | ||||
| Income (loss) before taxes | $ 762 | $ 7,768 | $ 21,703 | ||||
| Current provision for taxes - federal | - | $ 4,106 | $ 1,304 | ||||
| Current provision (credit) for taxes - state | - | $ 68 | $ 75 | ||||
| Current provision for taxes - non-U.S. | - | $ 735 | $ 1,198 | ||||
| Total current provision for taxes | $ 1,096 | $ 4,909 | $ 2,577 | ||||
| Deferred provision (credit) for taxes - federal | - | $ (5,806) | $ (863) | ||||
| Deferred provision (credit) for taxes - state | - | $ (40) | $ (25) | ||||
| Other deferred provision (credit) for taxes | - | $ 688 | $ 146 | ||||
| Total deferred provision (credit) for taxes | $ (2,009) | $ (5,158) | $ (742) | ||||
| Provision for (benefit from) taxes | $ (913) | $ (249) | $ 1,835 | ||||
| Net income (loss) | $ 1,675 | $ 8,017 | $ 19,868 | ||||
| Net income (loss) attributable to non-controlling interest | $ 14 | $ (3) | - | ||||
| Net income attributable to Intel Corp. | $ 1,689 | $ 8,014 | - | ||||
| Weighted average shares outstanding - basic | 4,190 | 4,108 | 4,059 | ||||
| Weighted average shares outstanding - diluted | 4,212 | 4,123 | 4,090 | ||||
| Year end shares outstanding | 4,228 | 4,137 | 4,070 | ||||
| Earnings (loss) per share-continuing operations - basic | $ 0.40 | - | - | ||||
| Net earnings (loss) per share - basic | $ 0.40 | $ 1.95 | $ 4.89 | ||||
| Net earnings (loss) per share - diluted | $ 0.40 | $ 1.94 | $ 4.86 | ||||
| Dividends per common share | $ 0.74 | $ 1.46 | $ 1.39 | ||||
| Full-Time Employees (Period End) | 124800 | - | - | ||||
| Total number of employees | 124800 | 131900 | 121100 | ||||
| Number of common stockholders | 97000 | 100835 | 102962 | ||||
| Foreign currency translation adjustments | - | -27 | -60 | ||||
| Total comprehensive income attributable to Intel | 2036 | - | - | ||||
| Diluted EPS Excluding ExtraOrd Items | 0.4 | - | - | ||||
| Sale of equity investments and other | 273 | - | - | ||||
| Balance Sheet | |||||||
| Exchange rate used is that of the Year End reported date | |||||||
| As Reported Annual Balance Sheet | |||||||
| Report Date | 12/30/2023 | 12/31/2022 | 12/25/2021 | ||||
| Currency | USD | USD | USD | ||||
| Audit Status | Not Qualified | Not Qualified | Not Qualified | ||||
| Consolidated | Yes | Yes | Yes | ||||
| Scale | Millions | Millions | Millions | ||||
| Cash & cash equivalents | $ 7,079 | $ 11,144 | $ 4,827 | ||||
| Short-term investments | $ 17,955 | $ 17,194 | $ 2,103 | ||||
| Trading assets | - | - | $ 21,483 | ||||
| Accounts receivable, net | $ 3,402 | $ 4,133 | $ 9,457 | ||||
| Raw materials | $ 1,166 | $ 1,517 | $ 1,441 | ||||
| Work in process | $ 6,203 | $ 7,565 | $ 6,656 | ||||
| Finished goods | $ 3,758 | $ 4,142 | $ 2,679 | ||||
| Inventories | $ 11,127 | $ 13,224 | $ 10,776 | ||||
| Assets held for sale | - | $ 45 | $ 6,942 | ||||
| Other current assets | $ 3,706 | $ 4,667 | $ 2,130 | ||||
| Total current assets | $ 43,269 | $ 50,407 | $ 57,718 | ||||
| Land & buildings | - | $ 44,808 | $ 40,039 | ||||
| Machinery & equipment | $ 100,033 | $ 92,711 | $ 86,955 | ||||
| Construction in progress | $ 43,442 | $ 36,727 | $ 21,545 | ||||
| Land and buildings | $ 51,182 | - | - | ||||
| Total property, plant & equipment, gross | $ 194,657 | $ 174,246 | $ 148,539 | ||||
| Less: accumulated depreciation | $ 98,010 | $ 93,386 | $ 85,294 | ||||
| Property, plant & equipment, net | $ 96,647 | $ 80,860 | $ 63,245 | ||||
| Equity investments | $ 5,829 | $ 5,912 | $ 6,298 | ||||
| Other long term investments | - | - | $ 840 | ||||
| Goodwill | $ 27,591 | $ 27,591 | $ 26,963 | ||||
| Identified intangible assets, net | $ 4,589 | $ 6,018 | $ 7,270 | ||||
| Other long-term assets | $ 13,647 | $ 11,315 | $ 6,072 | ||||
| Total assets | $ 191,572 | $ 182,103 | $ 168,406 | ||||
| Short-term debt | - | $ 4,367 | $ 4,591 | ||||
| Long-term debt redeemable within one year | $ 2,288 | - | - | ||||
| Accounts payable | $ 8,578 | $ 9,595 | $ 5,747 | ||||
| Accrued compensation & benefits | $ 3,655 | $ 4,084 | $ 4,535 | ||||
| Other accrued liabilities | $ 12,425 | $ 11,858 | $ 12,589 | ||||
| Income taxes payable | $ 1,107 | $ 2,251 | - | ||||
| Other accrued liabilities - Balancing value | $ 12,283 | - | - | ||||
| Operating Lease Liabilities - Current Portion/Short-Term | $ 142 | - | - | ||||
| Total current liabilities | $ 28,053 | $ 32,155 | $ 27,462 | ||||
| Senior notes | - | - | $ 36,696 | ||||
| Oregon & Arizona bonds | - | $ 39,285 | $ 999 | ||||
| Total senior notes & other borrowings | - | $ 39,285 | $ 37,695 | ||||
| Unamortized premium/discount & issuance costs | - | $ (417) | $ (405) | ||||
| Hedge accounting fair value adjustments | - | $ (761) | $ 811 | ||||
| Total long-term debt | - | - | $ 38,101 | ||||
| Less: current portion of long-term debt | - | $ 423 | $ 4,591 | ||||
| Debt | $ 46,978 | $ 37,684 | $ 33,510 | ||||
| Contract liabilities | - | - | $ 185 | ||||
| Long-term income taxes payable | - | $ 3,796 | $ 4,305 | ||||
| Deferred income taxes | - | $ 202 | $ 2,667 | ||||
| Other long-term liabilities | $ 6,576 | $ 4,980 | $ 4,886 | ||||
| Common stock | $ 4 | $ 31,580 | $ 28,006 | ||||
| Capital in excess of par value | $ 36,645 | - | - | ||||
| Accumulated net unrealized holding gain on derivatives | - | $ (299) | $ 211 | ||||
| Accumulated minimum pension liability | $ (193) | - | - | ||||
| Accumulated net actuarial valuation & other pension expenses | - | $ (259) | $ (1,114) | ||||
| Accumulated net foreign currency translation adjustment | $ 5 | - | - | ||||
| Accumulated translation & other adjustments | - | $ (4) | $ 23 | ||||
| Unrealized holding gains (losses) on Derivatives | $ (27) | - | - | ||||
| Accumulated other comprehensive income (loss) | $ (215) | $ (562) | $ (880) | ||||
| Retained earnings | $ 69,156 | $ 70,405 | $ 68,265 | ||||
| Common Share Capital including Additional Paid in Capital - Total | $ 36,649 | - | - | ||||
| Total stockholders' equity | $ 105,590 | $ 101,423 | $ 95,391 | ||||
| Non-controlling interests | $ 4,375 | $ 1,863 | - | ||||
| Total stockholders' equity | $ 109,965 | $ 103,286 | - | ||||
| Cash Flows | |||||||
| Exchange rate used is that of the Year End reported date | |||||||
| As Reported Annual Cash Flow | |||||||
| Report Date | 12/30/2023 | 12/31/2022 | 12/25/2021 | ||||
| Currency | USD | USD | USD | ||||
| Audit Status | Not Qualified | Not Qualified | Not Qualified | ||||
| Consolidated | Yes | Yes | Yes | ||||
| Scale | Millions | Millions | Millions | ||||
| Cash & cash equivalents, beginning of period | $ 11,144 | $ 4,827 | $ 5,865 | ||||
| Net income (loss) | $ 1,675 | $ 8,017 | $ 19,868 | ||||
| Depreciation | $ 7,847 | $ 11,128 | $ 9,953 | ||||
| Share-based compensation | $ 3,229 | $ 3,128 | $ 2,036 | ||||
| Restructuring & other charges | $ (424) | $ 1,074 | $ 2,626 | ||||
| Amortization of intangibles | $ 1,755 | $ 1,907 | $ 1,839 | ||||
| Losses (gains) on equity method investments, net | $ (42) | - | - | ||||
| Losses (gains) on equity investments, net | - | $ (4,254) | $ (1,458) | ||||
| Losses (gains) on divestitures | - | $ (1,059) | - | ||||
| Accounts receivable | $ 731 | $ 5,327 | $ (2,674) | ||||
| Inventories | $ 2,097 | $ (2,436) | $ (2,339) | ||||
| Accounts payable | $ (801) | $ (29) | $ 1,190 | ||||
| Accrued compensation & benefits | $ (614) | $ (1,533) | $ 515 | ||||
| Customer deposits & prepaid supply agreements | - | - | $ (1,583) | ||||
| Prepaid customer supply agreements | - | $ (24) | - | ||||
| Income taxes | $ (3,531) | $ (4,535) | $ (441) | ||||
| Other assets & liabilities | $ (451) | $ (1,278) | $ 459 | ||||
| Total adjustments | - | $ 7,416 | $ 10,123 | ||||
| Net cash flows from operating activities | $ 11,471 | $ 15,433 | $ 29,991 | ||||
| Additions to property, plant & equipment | $ (25,750) | $ (24,844) | $ (18,733) | ||||
| Additions to held for sale NAND property, plant, & equipment | - | $ (206) | $ (1,596) | ||||
| Acquisitions, net of cash acquired | - | - | $ (209) | ||||
| Purchases of available-for-sale investments | - | - | $ (5,051) | ||||
| Maturities & sales of available-for-sale debt investments | - | - | $ 6,467 | ||||
| Purchase of short-term investments | - | $ (43,647) | - | ||||
| Maturities & sales of short-term investments | - | $ 48,730 | - | ||||
| Maturities & sales of available-for-sale investments | $ 472 | - | - | ||||
| Purchases of trading assets | $ (44,414) | - | $ (35,503) | ||||
| Maturities & sales of trading assets | $ 44,077 | - | $ 28,832 | ||||
| Purchases of equity investments | $ (399) | $ (510) | $ (613) | ||||
| Proceeds from divestitures | - | $ 6,579 | - | ||||
| Sales of equity investments | - | $ 4,961 | $ 581 | ||||
| Other investing activities | $ 962 | $ (1,540) | $ 658 | ||||
| Proceeds from capital-related government incentives | $ 1,011 | - | - | ||||
| Net cash flows from investing activities | $ (24,041) | $ (10,477) | $ (25,167) | ||||
| Issuance of commercial paper, net of issuance costs | - | $ 3,945 | - | ||||
| Payments on finance leases | $ (96) | $ (345) | - | ||||
| Partner contributions | $ 1,511 | $ 874 | - | ||||
| Proceeds from Mobileye initial public offering ("IPO") | - | $ 1,032 | - | ||||
| Issuance of term debt, net of issuance costs | $ 11,391 | $ 6,548 | $ 4,974 | ||||
| Repayment of term debt & debt conversions | $ (423) | $ (4,984) | $ (2,500) | ||||
| Proceeds from sales of common stock through employee equity incentive plans | $ 1,042 | $ 977 | $ 1,020 | ||||
| Repurchase of common stock | - | - | $ (2,415) | ||||
| Payment of dividends to stockholders | $ (3,088) | $ (5,997) | $ (5,644) | ||||
| Other financing activities | $ (847) | $ (689) | $ (1,297) | ||||
| Repayment of commercial paper | $ (3,944) | - | - | ||||
| Proceeds from sales of subsidiary shares | $ 2,959 | - | - | ||||
| Net cash flows from financing activities | $ 8,505 | $ 1,361 | $ (5,862) | ||||
| Net increase (decrease) in cash & cash equivalents | $ (4,065) | $ 6,317 | $ (1,038) | ||||
| Cash & cash equivalents, end of period | $ 7,079 | $ 11,144 | $ 4,827 | ||||
| Cash paid during the year for interest, net of capitalized interest | $ 613 | $ 459 | $ 545 | ||||
| Cash paid during the year for income taxes, net of refunds | $ 2,621 | $ 4,282 | $ 2,263 |
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