Assignment 2

The 2021 Intel Form 10-K can be found at the following Web site SEC.gov.

Use 2021 Financial Statements.

Be precise on your calculations. When you are finished with this assignment you will

complete the quiz on D2L title Assignment 2 to record your answers. The questions will be

presented as multiple choice or true/false. You will have only 30 minutes to enter your

answers to D2L which means you need to complete this assignment before recording your

answers.

Assume I do not know anything about these metrics. Answer the following questions so that a

non-financial minded person can understand:

1. Compute the following KPIs for just 2021.

i) CURRENT RATIO

ii) QUICK RATIO

iii) DEBT / EQUITY RATIO

2. Compare your results calculated in item (1) to the semi-conductor industry listed below.

Explain your results in terms of your comparisons. How does Intel compare and what does

that mean for Intel's financial position related to its peers?

Financial ratio

Solvency Radios

Debt-to-equity ratio

Interest coverage ratio

Liquidity Ration

Current Ratio

Quick Ratio

Cash Rafo

2020

0.67

4.70

3.32

2:41

1.61

3. Explain why the current ratio for the semi-conductor industry would be higher than the

overall market average of 1.9? (Hint: think about the components of the current ratio for a

semi-conductor company versus other types of companies)

4. Prepare a common size balance sheet for 2021 and 2020. Identify any significant trends

between the two years. Provide a possible explanation for the identified trends.