Financial Statement Analysis (Ti vs Intc)

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Analysis of Texas Instruments 2007 – 2011 Financial Statements Masud Alam Texas A&M University – Commerce Financial Statement Analysis, ACCT 575 - 01W Spring 2013 INTRODUCTION Purpose: The purpose of this paper is to perform a comprehensive financial statement analysis of two publicly traded companies and to come up with a recommendation of whether investing in any of these two companies would be a sound financial decision. The two companies that are in discussion are Texas Instruments (TI) and Intel Corporation (INTC). In this report, TI is considered as the main company and INTC is considered as the competitor company. Both these companies belong to Semiconductor Industry. Analysis approach: In this report, five years (2007-2011) financial statements data and various financial ratios of these two companies are compared and analyzed. In order to evaluate the relative financial strength compared to the rest of the industry, financial ratios of these two companies are compared with the benchmark data of the Semiconductor Industry. Based on the above analysis, an investment recommendation is made. There are two ways common stock investors can benefit from investing in a specific company stock, i.e. dividend paid by the stock and the appreciation of stock price since the investment was made. From the profitability point of view, factors such as dividend yield and stock appreciation over the last 5-yr period are used as the major decision making criteria to decide whether to invest in any of these two companies, if so, which one? Other financial data are used to verify the financial health of the two companies. The supporting financial data is equally important in the final decision since the profitability of a company can’t guarantee its long-term viability. Other financial data are used to verify

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