This is a CLC assignment.

Analyze a publicly traded company's financial statements for the prior five years. Include the following items as supplemental schedules to the analysis, prepared as individual worksheets within an Excel spreadsheet:

1. 1.Horizontal analysis of the prior five years' income statement and balance sheet.
2. 2.Vertical analysis of the prior five years' income statement and balance sheet.
3. 3.Calculation of at least five significant liquidity ratios for each of the five years analyzed.
4. 4.Calculation of at least five significant profitability ratios for each of the five years analyzed.
5. 5.Calculation of at least five significant long-term debt-paying ratios for each of the five years analyzed.
6. 6.Calculation of at least five significant investor ratios for each of the five years analyzed.

Prepare a paper (10-15 pages) that analyzes the financial strengths and weaknesses of the company examined.

1. 1.The analysis should reference significant items found in the income statement, balance sheet, statement of cash flows, horizontal analysis, vertical analysis, and ratio analysis of the company examined.
2. 2.A competitor analysis and comparison to industry averages should be presented.
3. 3.A summary identifying whether the company would be attractive to investors and/or creditors must be included.

Prepare this assignment according to the APA guidelines.

An abstract is not required.

Most of this assignment has already been completed. Please see the attached word document. Please see the text in red throughout the document for the parts that are still needed. Please include in-text citations and references for those in-text citations. This assignment is on Intel corporation. Financial Reporting and Standards 1 Intel Corporation -Background information Founded in 1968, Intel has evolved primarily in the chip manufacturing industry for close to a half of a century. In 1969, capitalized on $2.5 million, Gordon Moore and Bob Noyce introduced the world's first metal-oxide semiconductor random access memory, the basis for all current computer related technology (Intel Corporation, 2016). As the true industry driver, Moore's law is accepted as a means for predicting obsolesce in the computer manufacturing industry. In 1971, the world's first microprocessor is produced, the 4004, the precursor to all x86 based chip designs. In 1974, the 8080 is introduced and incorporated into stop lights, watches, and cash registers. In 1975, the first disk-based system is introduced. In 1975, the world's first single board computer is introduced with its own micro circuitry controller. In 1977, Intel revolutionizes the telecommunications industry with its 2910 chip. 1980, IBM selects Intel' 8088 for the first PC's, and PC manufacturing has been dominated ever since with Intel central processing units (Intel Corporation, 2016).The current CEO, Brian Krzanich, is taking Intel in a different direction away from the emphasis on personal computers into the internet of things, emphasizing connectivity technology. Instead of being known as a PC company, Krzanich envisions the company being the premier cluster server infrastructure that powers the cloud. The following analysis draws upon a 5-year history from Intel's 10-K submissions to the Securities Exchange Commission and several financial data websites to conduct a vertical, horizontal, solvency, profitability, investor, industry, and competitor analyses to probe the attractiveness and viability in taking a financial position in the company. Financial Reporting and Standards 2 Statement of Income Vertical Analysis The variable cost of sales has remained relative to total sales for each period, with 2013 spiking to 40% as sales fell $1.5 billion off the 5-year average of $55 Billion. Since 2013, gross margin has hovered at 63% indicating management has positive control of its cost of production. Research and Development expenses are showing have steadily increased relative to net sales. This indicates the effort of Intel's management to continue to drive Moore's law, perpetually redefining competitive advantage, maintaining Intel's position as market leader in innovation and total volume sales. Through the 5-year period, marketing, general and administrative expenses remain one percentage point relative to sales, indicating that company has controlled its marketing, administrative and general costs and has not allowed it to increase disproportionately to the gross margin. Statement of Income Horizontal Analysis Using 2011 as a base year, sales decreases in year 2012 and 2013 rebounded and advanced thereafter, showing Intel maintaining lock-step with the economic upturn from the 2008 meltdown. As it was clear from vertical analysis and also from horizontal analysis that research and development expenditure is increasing continuously which is essential on part of Intel to stay ahead of its competition. Balance Sheet Vertical Analysis Vertical analysis of Intel's balance sheet indicates that cash and cash equivalents are 14.9% of total assets in year 2015. From 2011, cash relative to total assets has increased 7%, while in the same period, short term investments have been liquidated by 5%. Cash has shown Financial Reporting and Standards 3 fluctuations from year to year while cash policy has average at 8 percent for the 5-year period. In 2015, current assets are approximately 40% of total assets which also indicates that company has good financial planning regarding investment in current and long-term assets, while increasing a modest 2.8% relative to total assets. Over the 5-year period, total current liabilities have fallen 1.7%, averaging 15.9% of total liabilities and stockholder's equity. Total liabilities, however, has increased 4.5% during the same period, an uptick trend from 35.4% of total liabilities and stockholder's equity and has reached to 39.9% in 2015 relative to total liabilities and equity. Relative 61.67% stockholder equity accounts reflects its relative strong financing of of assets. Balance Sheet Horizontal Analysis Cash and cash equivalents show a positive trend since 2011, save 2014 as revealed in the policy to maintain and increase percentage of trading assets in begun in 2013, into 2015. Intel's total current assets are showing increasing trend indicating that short term financial position of the company is becoming stronger year to year. Total assets are also showing increasing trend which is sign that they are growing year to year. Their short term debts have increased heavily in year 2014 and 2015, all of which are signs that the company is growing every year. Current liabilities and long term debts are also showing increasing trend. At same time, the company's equity also increased which indicates maintenance of balance of borrowed funds and owner's fund. Over all the financial position of the company is very strong. Ratio Analysis overview verbiage needed Financial Reporting and Standards 4 Liquidity ratios Intel Corporation LIQUIDITY RATIOS Altman Z-Score Working capital Current ratio Acid-test ratio Cash ratio Days' sales in receivables Dec. 26, 2015 Dec. 27, 2014 12 Months Ended Dec. 28, 2013 Dec. 29, 2012 Dec. 31, 2011 36.50 $0 0.00 0.00 5167.00 0.0 36.34 $0 0.00 0.00 4273.00 0.0 38.41 $0 0.00 0.00 4172.00 0.0 38.10 $0 0.00 0.00 4734.00 0.0 41.70 $0 0.00 0.00 4096.00 0.0 Working capital. The working capital of company is increasing continuously. It was $13,844 m in 2011 and has increased to $24,689 m in 2015 which indicates that company has sufficient amount for working capital and is not going to face difficulty in operating business due to lack of working capital in near future. Current ratio. Current ratio of company was 2.15 in 2011 and increased continuously till 2013 to 2.37 then it felled to 1.73 in 2014. But in 2015 company improved it to 2.58 which is very healthy. The usual standard of current ratio is 2 and that of industry is 2.16 in 2015. The current ratio of company is higher than that of industry ratio and usual standard indicates that liquidity or short term financial position of company is very strong and it will be able to pay its short term obligations as and when due. Quick ratio or Acid Test Ratio. Quick ratio of company was 1.81 in 2011 and increased continuously till 2013 to 2.06 then it felled to 1.46 in 2014. But in 2015 company improved it to 2.25 which is very healthy. The usual standard of quick ratio is 1 and that of industry is 1.36 in 2015. The quick ratio of company is higher than that of industry ratio and usual standard Financial Reporting and Standards 5 indicates that liquidity or short term financial position of company is very strong and it will be able to pay its short term quick liabilities as and when due. Cash ratio. Cash ratio of company was 0.85 in 2011 and increased to 1.15 in 2015 indicating that cash position of company is strong and company is in good position of cash to meet out its cash requirements. Days sales in receivables. Company's accounts receivables were equal to 25 days sales in 20111 and increased to 30 days in 2015 indicating that efficiency of sales department has either reduced as regards of collection of debtors or company has increased its credit allowed period. (top 5 only+ a/r) Solvency ratios overview verbiage needed Intel Corporation SOLVENCY (long-term debt paying) RATIOS Times interest earned Fixed charge coverage Debt ratio Debt/equity ratio Debt to tangible net worth Dec. 26, 2015 Dec. 27, 2014 163.94 139.35 0.40 0.67 71.9% 378.02 378.02 0.38 0.63 68.4% 12 Months Ended Dec. 28, 2013 87.64 87.64 0.37 0.59 64.2% Dec. 29, 2012 160.72 160.72 0.39 0.65 73.7% Dec. 31, 2011 94.19 94.19 0.35 0.55 63.6% Time Interest Earned. This ratio indicates company's ability to pay interest on debts. It is calculated as profits before interest and tax divided by expense of interest. Higher the interest cover better is company's position to pay interest. Intel's interest cover is 137 times which is very high although that of industry is 242 times and that of company is lower to cover of industry but still company will be able to pay its interest liability without any problem. Debts ratio. This is ratio of total liabilities to total assets and indicator of financial health Financial Reporting and Standards 6 of company. Lower ratio is better. Lower the debt ratio solvency position is strong. Intel's debt ratio is .4 in 2015 indicates that total liabilities are 40% of total assets and remaining 60% of total assets is financed by stockholders. Solvency position of company is strong. Debts to Equity Ratio. This ratio is ratio of total liabilities to stockholder's equity. Usually for good solvency position this should be less than 1 or total liabilities should be less than stockholder's equity. Lower this ratio indicates that owner's contribution is higher than outsiders liability and company's liquidity position is considered strong and vice versa. Debts to equity ratio of Intel are 0.67 which is very healthy. Industry ratio is .19. Although ratio of company is on higher side as compared to that of industry but it is safe. Debts to Tangible Net Worth. To calculate this ratio, intangible assets are deducted from stockholder's equity. Ratio of company is 71.9% indicates that tangible net worth is higher than total liabilities and solvency position of company is strong. Investor Ratios verbiage needed ... Intel Corporation INVESTOR RATIOS Degree of financial leverage Earnings per common share Price/earnings ratio Percentage of earnings retained Dividend payout Dividend yield Book value per share Materiality of options Degree of financial leverage. Earnings per common share. Dec. 26, 2015 Dec. 27, 2014 1.01 $2.37 15.19 58.46% 1.03 6.80% $12.88 3.11% 0.94 $2.37 16.22 58.11% 1.03 6.36% $11.40 3.07% 12 Months Ended Dec. 28, 2013 1.04 $1.93 13.56 48.32% 1.03 7.56% $11.72 2.49% Dec. 29, 2012 Dec. 31, 2011 1.01 $2.15 9.49 54.58% 1.03 10.89% $10.25 3.18% 0.99 $2.46 10.13 59.37% 1.03 10.16% $8.73 2.86% Financial Reporting and Standards 7 Price/earnings ratio. Percentage of earnings retained. Dividend payout. Dividend yield. Book value per share. Materiality of options. .... relative constant and low, not an issue etc ... Cash Flow Ratios verbiage needed ... Intel Corporation CASH FLOWS Current Ratio Acid-Test Ratio Cash Ratio Debt ratio Debt/Equity ratio Debt to Tangible Net Worth OCF over total debt OCF over Current Notes & Cur maturities Current Ratio. Acid-Test Ratio. Cash Ratio. Debt ratio. Debt/Equity ratio. Debt to Tangible Net Worth. OCF over total debt. Dec. 26, 2015 2.58 2.25 0.76 0.40 0.67 0.72 0.46 1.21 Dec. 27, 2014 1.73 1.46 0.89 0.38 0.63 0.68 0.58 1.27 12 Months Ended Dec. 28, 2013 2.36 2.06 0.92 0.37 0.59 0.64 0.61 1.53 Dec. 29, 2012 2.43 2.06 0.69 0.39 0.65 0.74 0.57 1.46 Dec. 31, 2011 2.15 1.81 0.09 0.35 0.55 0.64 0.83 1.74 Financial Reporting and Standards 8 Operating Cash Flow / Current Maturities of Long-Term Debt and Current Notes Payable. ...... Industry Analysis Comparing Intel to it' industry averages invokes several challenges for the analyst isolating the appropriate industry statistics. Intel's operational tentacles implicate several industry classifications including the North American Industry Classification System -Semiconductor and Related Device Manufacturing (334413), the Standard Industrial Classification's manual -Electronic Parts and Components Industry (3352) and Semiconductors and Related Devices (3674), and the International Standard Industrial Classification code -Manufacture of Computers and Peripheral Equipment (2620). Aside from the formal classification systems used by ratings firms and the Security Exchange Commission, Yahoo! Finance classifies Intel in the Semiconductor, Broad Line industry, and Bizstats classifies Intel in the Computer and Electronic Product Manufacturing industry. The industry selected for analysis is the Computer and Electronic Product Manufacturing industry. Intel Corporation Percentage of Revenue by Major Operating Segment Client Computing Group Data Center Group Internet of Things Group Software & Services Operating segments All Other CCG DCG IOTG SSG - 2013 66% 23% 3% 4% 4% 2014 62% 26% 4% 4% 4% 2015 58% 29% 4% 4% 5% Since Intel's subsidiaries directly drive synergistic growth among each subsidiary, and For Financial Reporting and Standards 9 the purpose of selecting competing firms, the consolidated analysis focuses on the historical operations of its most dominant subsidiary, CCG, to identify similar industry competiting companies with similar subsidiaries. (more analysis needing text) Recommendations: As of April this year, Intel has elected to restructure its financial reporting methodology to highlight the direction the CEO is taking the firm (Intel, 2016). Although this is in-and-ofitself not an unusual item on the financial statements, it may reveal unusual items that garner special attention. Intel's stock price is currently at similar levels as one year ago, and still above all levels for the past decade, save a spike in Q3 2014 (Yahoo Finance, 2016). With a P/E ratio of 12.81, the current market view of the company is below the S&P's current median for riskiness, estimated currently at 23.70. On the basis of above vertical and horizontal analysis of income statement and balance sheet and ratio analysis of Intel Corporation it can be concluded that short term (liquidity) and solvency (long term) position of company is very strong. Company is enjoying good liquidity and having strong long term financial position. Since Intel relies on internal financing for expanding operations, Intel is very safe for creditors and investors. Industry analysis and major competitors ...... Financial Reporting and Standards 10 Financial Reporting and Standards 11 SCHEDULE 1. Income Statement 5-Year Vertical Analysis Intel Corporation (INTC) Vertical Common-Size Statement of Income Net revenue Cost of sales Gross margin Research and development Marketing, general and administrative Restructuring and asset impairment charges Amortization of acquisition-related intangibles Operating expenses Operating income Gains (losses) on equity investments, net Interest and other, net Income before taxes Provision for taxes Net income Dec. 26, 2015 Dec. 27, 2014 100.0% 37.4% 62.6% 21.9% 14.3% 0.6% 0.5% 37.4% 25.3% 0.6% -0.2% 25.7% 5.0% 20.6% 100.0% 36.3% 63.7% 20.6% 14.6% 0.5% 2.1% 37.8% 25.9% 0.7% 0.1% 28.3% 7.3% 20.9% Year Ending Dec. 28, 2013 100.0% 40.2% 59.8% 20.1% 15.3% 0.5% 0.0% 35.9% 23.9% 0.9% -0.3% 23.9% 5.7% 18.3% Dec. 29, 2012 Dec. 31, 2011 100.0% 37.9% 62.1% 19.0% 15.1% 0.0% 0.0% 34.1% 28.0% 0.3% 0.2% 27.9% 7.3% 20.6% 100.0% 37.5% 62.5% 15.5% 14.2% 0.0% 0.5% 30.1% 32.4% 0.2% 0.4% 32.9% 9.0% 24.0% Financial Reporting and Standards 12 SCHEDULE 2. Balance Sheet 5-Year Vertical Analysis Intel Corporation (INTC) Vertical Common-Size Balance Sheet Dec. 26, 2015 Assets Current assets: Cash and cash equivalents Short-term investments Trading assets Accounts receivable Inventories Deferred tax assets Other current assets Total current assets Property, plant and equipment, net Marketable equity securities Other long-term investments Goodwill Identified intangible assets, net Other long-term assets Total assets Liabilities, temporary equity, and stockholders' equity Current liabilities: Short-term debt Accounts payable Accrued compensation and benefits Accrued advertising Deferred income Other accrued liabilities Total current liabilities Long-term debt Long-term deferred tax liabilities Other long-term liabilities Total liabilities Temporary equity Stockholders' equity: Dec. 27, 2014 Year Ending Dec. 28, 2013 Dec. 29, 2012 Dec. 31, 2011 14.9% 2.6% 7.1% 4.6% 5.0% 2.0% 3.0% 39.2% 30.9% 5.8% 1.8% 11.0% 3.8% 7.5% 100.0% 2.8% 2.6% 9.9% 4.8% 4.6% 2.1% 3.3% 30.2% 36.1% 7.7% 2.2% 11.8% 4.8% 7.1% 100.0% 6.1% 6.5% 9.1% 3.9% 4.5% 2.8% 1.8% 34.7% 34.0% 6.7% 1.6% 11.4% 5.6% 5.9% 100.0% 10.1% 4.7% 6.7% 4.5% 5.6% 2.5% 3.0% 37.2% 33.2% 5.2% 0.6% 11.5% 7.4% 4.9% 100.0% 7.1% 7.3% 6.5% 5.1% 5.8% 2.4% 2.2% 36.4% 33.2% 0.8% 1.3% 13.0% 8.8% 6.5% 100.0% 2.6% 2.0% 3.0% 0.9% 2.1% 4.5% 15.2% 19.4% 2.5% 2.8% 39.9% 0.9% 1.7% 3.0% 3.8% 1.2% 2.4% 5.3% 17.4% 13.2% 4.1% 3.6% 38.3% 1.0% 0.3% 3.2% 3.4% 1.1% 2.3% 4.4% 14.7% 14.3% 4.8% 3.2% 36.9% 0.0% 0.4% 3.6% 3.5% 1.2% 2.3% 4.3% 15.3% 15.6% 4.0% 4.4% 39.3% 0.0% 0.3% 4.2% 4.1% 1.6% 2.7% 4.0% 16.9% 10.0% 3.7% 4.9% 35.4% 0.0% Financial Reporting and Standards 13 Common stock Accumulated other comprehensive income Retained earnings Total stockholders' equity Total liabilities, temporary equity, and stockholders' equity 22.7% 0.1% 36.5% 59.3% 23.7% 0.7% 36.3% 60.8% 23.3% 1.3% 38.4% 63.1% 23.1% -0.5% 38.1% 60.7% 24.0% -1.1% 41.7% 64.6% 100.0% 100.0% 100.0% 100.0% 100.0% Financial Reporting and Standards 14 SCHEDULE 3. Cash Flows 5-Year Vertical Analysis Intel Corporation (INTC) Vertical Common-Size Statement of Cash Flows Dec. 26, 2015 Cash and cash equivalents, beginning of period Cash flows provided by (used for) operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Share-based compensation Restructuring and asset impairment charges Excess tax benefit Amortization of intangibles (Gains) losses on equity investments, net (Gains) losses on divestitures Deferred taxes Changes in assets and liabilities: Accounts receivable Inventories Accounts payable Accrued compensation and benefits Income taxes payable and receivable Other assets and liabilities Total adjustments Net cash provided by operating activities Cash flows provided by (used for) investing activities: Additions to property, plant and equipment Acquisitions, net of cash acquired Purchases of available-for-sale investments Sales of available-for-sale investments Maturities of available-for-sale investments Purchases of trading assets Maturities and sales of trading assets Dec. 27, 2014 Year Ending Dec. 28, 2013 Dec. 29, 2012 Dec. 31, 2011 16.7% 221.6% 149.4% 59.7% 108.5% 74.6% 457.0% 169.5% 129.8% 255.5% 51.1% 8.5% 288.2% 44.8% 119.7% 19.7% 75.0% 13.0% 101.5% 20.8% 2.3% -1.0% 5.8% -1.7% 11.5% -4.8% 45.6% -13.8% 4.2% -0.9% 21.9% -7.5% 0.0% -1.7% 13.7% -1.7% -8.3% -27.5% -15.9% -2.9% 1.9% -0.7% 18.2% -2.2% -3.2% 15.6% -2.3% -5.0% -2.0% -4.6% 2.5% 4.4% 49.6% 124.2% -33.6% -3.8% -9.7% 0.2% -11.2% 54.3% 340.3% 797.3% 4.8% 9.9% 4.7% 2.7% 18.0% 15.2% 196.6% 366.2% -2.1% -7.4% 0.8% 2.3% 2.7% 1.1% 92.9% 222.7% -13.4% -4.8% 11.8% -1.9% 13.0% 1.8% 158.4% 413.9% -47.9% -6.0% -54.0% 13.7% 40.3% -75.0% 87.4% -394.6% -36.5% -273.6% 47.9% 349.2% -562.2% 514.1% -188.8% -16.3% -220.2% 16.5% 146.9% -294.6% 241.0% -130.1% -7.5% -102.5% 26.9% 63.3% -199.2% 186.2% -212.5% -172.2% -221.7% 179.2% 217.7% -223.4% 232.4% Financial Reporting and Standards 15 Investments in loans & reverse repurchases Collection of loans and reverse repurchases Investments in non-marketable equity Purchases of licensed technology & patents Return of equity method investments Proceeds from divestitures Other investing Net cash used for investing activities Cash flows provided by (used for) financing activities: Increase (decrease) in short-term debt, net Proceeds from government grants Excess tax benefit Issuance of long-term debt, net of costs Repayment of debt Common stock sale through employee plans Repurchase of common stock Restricted stock unit withholdings Payment of dividends to stockholders Repurchase of common stock liability of repurchased of common stock Other financing Net cash provided by (used for) financing activities Effect of exchange rate fluctuations on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, end of period Cash paid during the year for: Interest, net of capitalized interest Income taxes, net of refunds -16.7% 13.8% -13.1% -0.8% -53.8% -3.5% 2.3% -7.8% -2.5% 1.8% -5.6% -4.1% 2.6% -13.7% 0.8% 1.6% 5.2% 1.0% 6.0% -203.4% 4.8% -53.5% 26.2% -386.8% 5.7% -318.5% 4.4% -165.8% -3.1% 0.7% 1.0% 61.9% 9.2% 4.1% 4.8% -0.5% 2.3% 0.9% 5.7% -19.6% -2.9% -29.8% 2.1% -2.1% -1.4% 64.8% -421.4% -13.0% -172.2% -12.7% 12.7% -7.8% 28.0% -43.0% 0.8% 0.7% 1.7% 72.2% -1.5% 24.9% -60.3% 40.4% -283.1% -78.9% -51.3% -81.5% -5.5% -3.9% -0.2% 12.5% -531.5% -96.9% -16.6% -219.2% 0.0% -0.6% -0.2% 0.0% 0.1% 83.3% 100.0% -121.6% 100.0% -49.4% 100.0% 40.3% 100.0% -8.5% 100.0% 1.2% 22.5% 6.5% 181.1% 3.6% 50.7% 0.8% 46.4% 0.0% 65.9% 4.1% 2.4% 0.7% 98.0% Financial Reporting and Standards 16 SCHEDULE 4. Income Statement 5-Year Horizontal Analysis Intel Corporation (INTC) Horizontal Common-Size Statement of Income Net revenue Cost of sales Gross margin Research and development Marketing, general and administrative Amortization of acquisition-related intangibles Operating expenses Operating income Gains (losses) on equity investments, net Interest and other, net Income before taxes Provision for taxes Net income Dec. 26, 2015 Dec. 27, 2014 2.5% 2.1% 2.7% 45.2% 3.4% 1.9% 27.0% -19.9% 181.3% -154.7% -20.1% -42.3% -11.8% 3.5% 0.1% 5.5% 38.2% 6.1% 349.6% 29.8% -17.2% 267.0% -77.6% -11.1% -15.3% -9.6% Base year 2011 Dec. 28, 2013 -2.4% 4.7% -6.6% 27.1% 5.4% -100.0% 16.3% -28.0% 320.5% -178.6% -29.1% -38.2% -25.7% Dec. 29, 2012 Dec. 31, 2011 -1.2% -0.3% -1.8% 21.5% 5.0% -100.0% 11.8% -14.5% 25.9% -51.0% -16.4% -20.1% -15.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Financial Reporting and Standards 17 SCHEDULE 5. Balance Sheet 5-Year Horizontal Analysis Intel Corporation (INTC) Horizontal Common-Size Balance Sheet Dec. 26, 2015 Assets Current assets: Cash and cash equivalents Short-term investments Trading assets Accounts receivable Inventories Deferred tax assets Other current assets Total current assets Property, plant and equipment, net Marketable equity securities Other long-term investments Goodwill Identified intangible assets, net Other long-term assets Total assets Liabilities, temporary equity, and stockholders' equity Current liabilities: Short-term debt Accounts payable Accrued compensation and benefits Accrued advertising Deferred income Other accrued liabilities Total current liabilities Long-term debt Long-term deferred tax liabilities Other long-term liabilities Commitments and contingencies (Notes) Total liabilities Temporary equity Dec. 27, 2014 Base year 2011 Dec. 28, Dec. 29, 2013 2012 Dec. 31, 2011 202.2% -48.2% 59.5% 31.2% 26.1% 19.8% 92.1% 56.0% 34.8% 960.5% 112.7% 22.5% -37.2% 66.4% 44.9% -49.4% -53.1% 97.4% 21.3% 4.3% 15.2% 89.9% 7.2% 40.7% 1162.8% 127.6% 17.4% -29.1% 41.2% 29.3% 12.0% 15.3% 83.9% -1.9% 1.9% 52.6% 3.8% 24.0% 33.0% 1006.9% 65.7% 13.6% -17.8% 18.1% 29.9% 67.4% -22.8% 23.8% 5.0% 15.6% 24.5% 58.1% 21.2% 18.4% 687.2% -44.5% 4.9% -0.5% -10.8% 18.6% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 966.4% -30.2% 6.4% -15.3% 13.4% 66.5% 30.3% 182.8% -3.0% -18.3% 549.4% -7.0% 17.9% -3.7% 14.3% 74.0% 33.2% 70.9% 44.2% -5.8% 13.8% 0.4% 5.9% -10.0% 8.7% 44.9% 12.8% 85.8% 68.0% -14.6% 26.3% 2.3% 0.8% -10.5% 0.2% 29.5% 7.2% 85.4% 30.4% 6.4% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 63.0% 39.6% 35.3% 31.5% 100.0% Financial Reporting and Standards 18 Stockholders' equity: Common stock Accumulated other comprehensive income Retained earnings Total stockholders' equity Total liabilities, temporary equity, and stockholders' equity 37.4% -107.7% 26.8% 33.1% 27.9% -185.3% 12.7% 21.7% 26.4% -259.2% 19.6% 26.9% 14.3% -48.9% 8.4% 11.5% 100.0% 100.0% 100.0% 100.0% 44.9% 29.3% 29.9% 18.6% 100.0% Financial Reporting and Standards 19 SCHEDULE 6. Cash Flows 5-Year Horizontal Analysis Intel Corporation (INTC) Horizontal Common-Size Statement of Cash Flows Dec. 26, 2015 Cash and cash equivalents, beginning of period Cash flows provided by (used for) operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Share-based compensation Restructuring and asset impairment charges Excess tax benefit Amortization of intangibles (Gains) losses on equity investments, net (Gains) losses on divestitures Deferred taxes Changes in assets and liabilities: Accounts receivable Inventories Accounts payable Accrued compensation and benefits Income taxes payable and receivable Other assets and liabilities Total adjustments Net cash provided by operating activities Cash flows provided by (used for) investing activities: Additions to property, plant and equipment Acquisitions, net of cash acquired Purchases of available-for-sale investments Sales of available-for-sale investments Maturities of available-for-sale investments Purchases of trading assets Maturities and sales of trading assets Base year 2011 Dec. 28, Dec. 29, 2013 2012 Dec. 27, 2014 Dec. 31, 2011 -53% 3% 54% -8% 100% -12% -10% -26% -15% 100% 52% 24% 44% 9% 32% 6% 24% 5% 100% 100% 269% 330% -4% 135% 207% 230% 27% 216% 150% 32% 35% 279% -100% 284% 26% 26% 100% 100% 100% 100% -261% -189% -214% -131% 100% -48% 214% -152% 648% -42% 642% -5% -9% 27% -60% -142% -104% -143% 1429% 9% -3% -140% -332% -55% -263% 54% 851% 39% -1% -74% 158% -89% -302% -65% 3% -2% -10% 100% 100% 100% 100% 100% 100% 100% 100% -32% -90% -26% -77% -44% 2% 14% -6% -89% -38% -86% -19% 27% 12% 0% -89% 11% -90% -24% 48% 16% 2% -93% -23% -75% -51% 49% 34% 100% 100% 100% 100% 100% 100% 100% Financial Reporting and Standards 20 Investments in loans & reverse repurchases Collection of loans & reverse repurchases Investments in non-marketable equity Purchases of licensed technology & patents Return of equity method investments Proceeds from divestitures Other investing Net cash used for investing activities Cash flows provided by (used for) financing activities: Increase (decrease) in short-term debt, net Proceeds from government grants Excess tax benefit Issuance of long-term debt, net of costs Repayment of debt Common stock sale through employee plans Repurchase of common stock Restricted stock unit withholdings Payment of dividends to stockholders Repurchase of common stock liability of repurchased of common stock Other financing Net cash provided by (used for) financing activities Effect of exchange rate fluctuations on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, end of period Cash paid during the year for: Interest, net of capitalized interest Income taxes, net of refunds 1138% 1479% 190% -100% -100% 99% -3% -1% -37% 5% 11% -31% 100% 100% 100% -83% -48% 142% -21% 121% -4% 7% 75% 21% 36% 100% 100% 100% 100% -327% -15% 330% 91% 12% -16% 230% -100% -115% 4% 32% -100% -69% -49% 284% 23% 100% 100% 100% 100% -58% -79% -19% -25% -22% -83% 3% -64% 100% 100% 10% 7% 9% 5% 100% 2110% 1890% 3040% 3180% 100% -117% 23% -50% -87% 100% -80% -400% -280% -160% 100% -3044% 202% 619% -49% 548% 12% -888% 67% 100% 100% 3% 39% -14% 18% 100% Financial Reporting and Standards 21 SCHEDULE 7. Liquidity Ratios (5 significant ratios for each of the 5 years) Intel Corporation LIQUIDITY RATIOS Working capital Current ratio Acid-test ratio Cash ratio Days' sales in receivables Accounts receivable turnover in days Days' sales in inventory Inventory turnover in days Operating cycle Dec. 26, 2015 Dec. 27, 2014 12 Months Ended Dec. 28, 2013 Dec. 29, 2012 Dec. 31, 2011 $24,689 2.58 2.25 1.15 31.8 $11,711 1.73 1.46 0.31 29.2 $18,516 2.36 2.06 0.86 25.1 $18,460 2.43 2.06 0.97 26.5 $13,844 2.15 1.81 0.85 24.9 30.1 91.2 83.3 113.4 25.9 77.0 76.1 102.0 25.4 71.9 76.7 102.1 25.3 85.6 79.8 105.2 21.8 73.9 70.8 92.6 SCHEDULE 8. Profitability Ratios (5 significant ratios for each of the 5 years) Intel Corporation PROFITABILITY RATIOS cash flow margin ratio Net profit margin Total asset turnover Return on assets Operating income margin Return on operating assets Sales to fixed assets Return on investment Return on total equity Gross profit margin Dec. 26, 2015 Dec. 27, 2014 34.35% 20.25% 1.63 12.45% 25.29% 15.54% 1.74 14.87% 19.53% 62.65% 36.55% 20.14% 1.87 14.24% 25.90% 16.93% 1.68 19.36% 20.51% 63.74% 12 Months Ended Dec. 28, 2013 39.42% 17.64% 1.66 11.33% 23.87% 15.47% 1.68 13.86% 17.58% 59.80% Dec. 29, 2012 Dec. 31, 2011 35.40% 20.19% 1.86 14.04% 28.02% 16.33% 1.91 17.07% 22.66% 62.15% 38.82% 23.40% 2.09 18.29% 32.37% 16.95% 2.29 24.81% 28.19% 62.51% SCHEDULE 9. Long-Term Debt-Paying Ratios (5 significant ratios for each of the 5 years) Intel Corporation SOLVENCY (long-term debt paying) RATIOS Times interest earned Fixed charge coverage Debt ratio Debt/equity ratio Debt to tangible net worth Dec. 26, 2015 Dec. 27, 2014 163.94 139.35 0.40 0.67 71.9% 378.02 378.02 0.38 0.63 68.4% 12 Months Ended Dec. 28, 2013 87.64 87.64 0.37 0.59 64.2% Dec. 29, 2012 160.72 160.72 0.39 0.65 73.7% Dec. 31, 2011 94.19 94.19 0.35 0.55 63.6% Financial Reporting and Standards 22 SCHEDULE 10. Investor Ratios (5 significant ratios for each of the 5 years) Intel Corporation INVESTOR RATIOS Degree of financial leverage Earnings per common share Price/earnings ratio Percentage of earnings retained Dividend payout Dividend yield Book value per share Materiality of options Dec. 26, 2015 Dec. 27, 2014 1.01 $2.37 15.19 58.46% 1.03 6.80% $12.88 3.11% 0.94 $2.37 16.22 58.11% 1.03 6.36% $11.40 3.07% 12 Months Ended Dec. 28, 2013 1.04 $1.93 13.56 48.32% 1.03 7.56% $11.72 2.49% Dec. 29, 2012 Dec. 31, 2011 1.01 $2.15 9.49 54.58% 1.03 10.89% $10.25 3.18% 0.99 $2.46 10.13 59.37% 1.03 10.16% $8.73 2.86% SCHEDULE 11. Cash Flows (5 significant ratios for each of the 5 years) Intel Corporation CASH FLOWS Current Ratio Acid-Test Ratio Cash Ratio Debt ratio Debt/Equity ratio Debt to Tangible Net Worth OCF over total debt OCF over Current Notes & Cur maturities Dec. 26, 2015 2.58 2.25 0.76 0.40 0.67 0.72 0.46 1.21 Dec. 27, 2014 1.73 1.46 0.89 0.38 0.63 0.68 0.58 1.27 12 Months Ended Dec. 28, 2013 2.36 2.06 0.92 0.37 0.59 0.64 0.61 1.53 Dec. 29, 2012 2.43 2.06 0.69 0.39 0.65 0.74 0.57 1.46 Dec. 31, 2011 2.15 1.81 0.09 0.35 0.55 0.64 0.83 1.74 Financial Reporting and Standards 23 SCHEDULE 12. Competitor Analysis (AMDTXN, NVDA, ARMH, AMD) Intel Corporation Competitors' Ratios Nasdaq Symbol Earnings per share Dividend Dividend yield Shares* Shares Institution owned Market Capitalization* Price / Earnings Ratio Price-to-book ratio Price-to-sales ratio Current ratio Long-term debt to assets Total debt to assets Long-term debt to equity Total debt to equity Return on avg assets Return on avg equity Return on investment Beta Net profit margin Gross margin EBITD margin Operating margin Employees INTC $2.35 $0.96 3.28% 4.72 TXN $2.86 $1.40 2.48% 1.00 NVDA $1.16 $0.40 0.99% 0.534 ARMH $1.06 $0.38 0.89% 1.41 AMD -$0.75 $0.00 67% 87% 93% 7% 59% 150.82 13.57 2.45 2.7 2.45 62.6 21.5 6.23 4.73 2.77 24.61 39.77 5.57 4.93 2.57 21.01 41.79 7.85 14.68 3.61 3.85 19.75 19.22 1.32 0.29 65.08 22.34 25.39 20.49 0.53 72.54 32.8 31.37 2.17 0.34 37.11 41.42 11.81 17.77 19.53 28.94 14.12 21.04 0.97 1.24 20.63 22.97 62.65 58.15 41.67 41.12 25.68 32.88 107,300 29,977 55,355.0 13,000.0 Revenue 0 0 11,420.0 Net income 2,986.00 0 23,067.0 EBITDA 5,346.00 0 *Shares and Market Capitalization in Billions 33.79 8.43 13.82 10.84 1.23 12.26 56.11 21.9 14.91 9,227 5,010.0 0 0.63 17.17 20.43 19.78 1.25 35.08 95.94 45.72 41.94 3,602 1,397.84 0.793 0.89 1.65 -19.27 -32.93 2.23 -16.54 27.06 -4.21 -12.05 9,100 3,991.0 0 614.00 490.39 -660 1,097.0 0 639.08 -168 Financial Reporting and Standards 24 SCHEDULE 13. Computer and electronic product manufacturing INDUSTRY Analysis Computer and Electronic Product Manufacturing Industry Ratios Industry Income-Expense Statements Corp Annual Average Sales, Income & Expense Cost of Sales Gross Profit Salary-Wages Taxes Amort. & Dep. Interest Earned Interest Expense Other Income Net Profit 62.72% 37.28% 12.65% 1.36% 3.56% 0.24% 2.20% 5.71% 6.49% Industry Balance Sheet Benchmarks Corp Average Balance Sheet Cash Receivables Inventory Other Current Assets Total Current Assets 7.31% 18.11% 6.72% 8.38% 40.52% Fixed Assets Other Non-Current Assets Total Assets 22.81% 36.66% 99.99% Accounts Payable Loans/Notes Payable Other Current Liabilities Total Current Liabilities 13.79% 7.27% 14.37% 35.43% Other Long-Term Liabilities Total Liabilities Total Equity 15.32% 50.75% 49.25% 100.00 % Total Liabilities and Equity Financial Reporting and Standards 25 Industry Financial Ratios Corp Average Financial Ratios Return on Sales Return on Assets Return on Equity Quick Ratio Current Ratio Inventory Turnover Assets / Sales Tot Liabilities / Total Equity 6.49% 3.48% 7.07% 0.72 1.14 7.98 1.86 1.03 Financial Reporting and Standards 26 References: 1. http://www.nasdaq.com/symbol/intc/financials?query=ratios 2. http://csimarket.com/Industry/industry_Financial_Strength_Ratios.php?s=1000 3. http://csimarket.com/Industry/industry_Profitability_Ratios.php?s=100 SEC. (2016). INTEL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS. Retrieved on 6/06/2016 from https://www.sec.gov/Archives/edgar/data/50863/000005086316000105/a10kdocument12 262015q4.htm#sBA09A33BFAE25AA89A4F1EBE4566A1E6 Google Finance Beta. (2016). Intel Corporation. Retrieved 6/8/2016 from https://www.google.com/finance? q=NASDAQ:INTC&ei=wD5XV5OmN4a8jAGLkKSICA w.i.p