Itm 432 Mod 1 Case

TUI UNIVERSITY

Module 1 Case Assignment

ITM 432: Principles of Finance and Financial Information Systems

Dr. Carlos Thomas

February 16, 2014

Multi-billion dollars companies are obliged to deliver standard statements on their financial status. Defining what those documents are saying can be very tough and requires a somewhat trained eye. Advanced Micro Devices or AMD, as it is frequently known by, is one of the world’s leading developers of computer microchips. It is a state-of-the-art technology company devoted to collaborating with customers and partners to ignite the next generation of computing and graphics solutions at work, home, and play (AMD, 2011). We will study its present financial status and what that data means to investors. We will also attempt to explore how they use their own data to make informed management decisions.

The Securities and Exchange Commission (SEC) is the federal governing body mainly liable for imposing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States (Wikipedia, 2011) and is one of the standards used by them.

The annual report on Form 10-K offers a broad overview of the company's business and financial condition and comprises audited financial statements (sec.gov, 2011). Looking at AMDs 10K statement we can see how well the company has done over the past 5 years. They offer a good listing of the company’s financial status, though the one downside to it is that it list the bare minutest needed or selectively provided data from AMD. It does at least offer some key figures like net revenue, cost of sales, gross margin, net income and equity/liability figures. Using these numbers we can draw a conclusion to some of AMDs ratios.

Looking at 2009 data we can see what AMDs working capital and current ratio, two very important figures according to Merrill Lynch’s guide to Reading a Financial Report...