In today’s educational article we will take a look at the basic metrics in Intel’s 10K annual report released a couple of days ago and define some basic stock fundamentals that an investor should take into account when analyzing a security.
Financial analysis is the process of examining a company’s performance in the context of its industry and economic environment (macroeconomic) in order to arrive at a decision or recommendation.
If you want to invest in one company there are 2 main ways to do it:
• Invest in the debt of the company (buying corporate bonds)
• Invest in the equity of the company (buying shares)
Investors in debt are concerned with the company’s ability to pay interest and the principal.
Investors in equity are concerned about the profitability of the company which translates into the ability to pay dividends or the likelihood of the share price going up.
When we study Intel’s 10K we see some financial metrics that tell us about the business performance in the previous year:
- Revenue: Intel declared that their revenue was down 20% from 2021. The total figure was 63.1B vs 79B in 2021. The revenue ( sales) refers to amounts charged for the delivery of goods or services in the ordinary activities of a business.
- Gross Margin: was down 12.8% from the 2021 figure. In 2022 the gross margin for Intel was 42.6%. The gross margin is net sales less cost of goods sold (COGS). In other words, it's the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.
- Diluted EPS: Intel reported a diluted EPS that was down $2.92 or 60% lower than 2021. In 2021 they made $4.86 per share vs $1.94 in the previous year. Diluted EPS is a measurement used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised.
EPS: Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock.
- Operating cashflow: Operating cashflow was down $14B or 48% compared to 2022. The operating cashflow is defined as the net amount of cash provided from operating activities.
The company’s management said that 2022’s results were impacted by an uncertain macroeconomic environment arising from inflation, the war in Ukraine, and COVID-19 shutdowns in their supply chain in China.
If you like our content, please feel free to support our page with a like, comment & subscribe for future educational ideas and trading setups. Also, we have a more in-depth analysis on our YouTube channel pinned on this Tradingview profile.
Financial analysis is the process of examining a company’s performance in the context of its industry and economic environment (macroeconomic) in order to arrive at a decision or recommendation.
If you want to invest in one company there are 2 main ways to do it:
• Invest in the debt of the company (buying corporate bonds)
• Invest in the equity of the company (buying shares)
Investors in debt are concerned with the company’s ability to pay interest and the principal.
Investors in equity are concerned about the profitability of the company which translates into the ability to pay dividends or the likelihood of the share price going up.
When we study Intel’s 10K we see some financial metrics that tell us about the business performance in the previous year:
- Revenue: Intel declared that their revenue was down 20% from 2021. The total figure was 63.1B vs 79B in 2021. The revenue ( sales) refers to amounts charged for the delivery of goods or services in the ordinary activities of a business.
- Gross Margin: was down 12.8% from the 2021 figure. In 2022 the gross margin for Intel was 42.6%. The gross margin is net sales less cost of goods sold (COGS). In other words, it's the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.
- Diluted EPS: Intel reported a diluted EPS that was down $2.92 or 60% lower than 2021. In 2021 they made $4.86 per share vs $1.94 in the previous year. Diluted EPS is a measurement used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised.
EPS: Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock.
- Operating cashflow: Operating cashflow was down $14B or 48% compared to 2022. The operating cashflow is defined as the net amount of cash provided from operating activities.
The company’s management said that 2022’s results were impacted by an uncertain macroeconomic environment arising from inflation, the war in Ukraine, and COVID-19 shutdowns in their supply chain in China.
If you like our content, please feel free to support our page with a like, comment & subscribe for future educational ideas and trading setups. Also, we have a more in-depth analysis on our YouTube channel pinned on this Tradingview profile.
