The 2007 Intel Annual Report can be found at the following Web site: www.prenhall.com/ fraser.
(a) Using the Intel Annual Report, calculate key financial ratios for all years presented.
(b) Using the library, find industry averages to compare to the calculations in (a).
(c) Write a report to the management of Intel. Your report should include an evaluation of short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, market measures, and a discussion of any quality of financial reporting issues. In addition, strengths and weaknesses should be identified, and your opinion of the investment potential and the creditworthiness of the firm should be conveyed to management.

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The following report includes an evaluation of short-term liquidity, capital structure and long-term solvency, operating efficiency and profitability, market measures and quality of financial reporting issues. Strengths and weaknesses are identified and the investment potential and creditworthiness of the firm are assessed.

Short-term Liquidity

Intel's short-term liquidity is impressive. The current and quick ratios are both increasing due to the increase in cash, short-term investments and trading assets, while current liabilities are stable. The current