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I have made my first attempt to fill out an RM Essentials spreadsheet. The company I chose was Intel. Since this is my first time I was wondering if any of you could check my work. I plan on researching a number of companies and want make sure I know how to crunch the numbers.

Here is how rated Intel on the first 5 criteria:

1. Dominant Brand - Yes
2. Repeat Purchases - I said No due to the infrequent nature of return purchases.
3. Convenience - I said Yes due to the fact it is hard to by a PC without the Intel Inside logo slapped on it.
4. Expanding Possibilities - I said Yes because of everyone's familiarity with Intel and the continued potential for worldwide sales.
5. My Familiarity & Interest - I said Yes, of course.

For the 5 quantitative criteria, I used the 3Q 1999 10-Q that I linked to from The Fool. The income statement numbers were for 9 months ending Sep '99:

Sales: 21,177
Prior year sales: 18,659
Cost of goods sold: 8,660
Net income: 5,206

Cash & Equiv: 13,544
Current Assets: 17,916
Current Liabilities: 6,389
ST Debt: 164
LT Debt: 884

These gave me the following results:

Sales Growth: 13.5%
Gross Margins: 59.1%
Net Margins: 24.6%
Cash-to-Debt Ratio: 12.9
Foolish Flow Ratio: 0.70

The final result was 14 out a possible 15 points. Not bad. Do my numbers look correct? Is there a way to get more recent financial data, or should I always stick to the SEC filings? Any comments and suggestions will be appreciated. Thanks in advance.


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Do my numbers look correct?

Everything looks good except for your value for "Cash and Equivalents". In Intel's case, it should be the sum of "Cash and Equivalents", "Short-Term Investments", and "Trading Assets", which should bring the final tally to $11891 million. That should raise the Flow Ratio a tad up to around 0.95 or so, if memory serves me.

Is there a way to get more recent financial data, or should I always stick to the SEC filings?

You can always try the company website and see what sort of data they provide with their earnings releases. If I remember correctly, Intel is pretty good about providing both the Income Statement and a Balance Sheet with their releases, so you should be okay there. Just click on the following link to access their most recent data from 99Q4:

Hope this helps.

the Lanceman
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