Can you check my ratios for Qualcomm Inc, please?
I. Profitability Analysis:
*Profit Margin Ratio: net income/net sales=
2010: 29.54%
2009: 15.28%
2008: 28.36%
2007: 37.23%
*Return on assets:
2010: 10.62
2009: 5.80
2008: 12.86
2007: 17.86
II. Solvency Analysis:
*Debt to total assets: total liabilities/total assets
The higher the ratio the riskier the business
2007: 14.38%
2008: 26.95%
2009: 25.96%
2010: 31.77%
Qualcomm's debt financing is a bit high.
*Cash Debt Coverage Ratio: cash provided by operating activities/avg. total liabilities: Enough cash to cover short term needs
2008: 53.75%
2009: 7172123/7129123=100.60%
2010: 4076123/9714000=41.96%
III. Liquidity Analysis:
*Current Ratio: current assets/ current liabilities
A current ration of 1.0% or greater is generally required to be liquid. Liquidity measures a company's ability to pay its bills when they are due and to provide for unanticipated cash requirements.
2007: 3.91%
2008: 5.12%
2009: 4.47%
2010: 2.22%
IV. Market Analysis:
Earnings Per Share: net income-preferred stock dividend/average common stock shares outstanding.
2007: 2.00
2008: 1.91
2009: 0.96
2010: 1.98
Price to Earnings Ratio: current market price per share/earnings per share
2011: $53.47/2.17(2011)=24.64
V. Cash Flows from Operating Activities:
2010: 4,076,000
2009: 7,172,000
2008: 3,558,000
2007: 3,811,000
Cash Flows from Investing & Financing
2010: (839,000) (2,405,000)
2009: (5,457,000) (833,000)
2008: (2,819,000) (1,307,000)
Conclusion:
In 2010, QCOM reached it highest level of profitability in four years. Making extensive partnerships in the mobile telecommunication industry, with RIMM ATT, APPL, etc, Qualcomm has proven, that it is a leader and a driving force in the future of state-of-the-art technology. Given that telecomm companies are now the second most active dealmakers behind the oil & gas industries, this shows future deals and partnerships that will lead to a successful financial future. Furthermore, based on the competitor analysis of stock, Qualcomm has exceeded expectations and surpassed its direct competitor by stock value, higher returns, etc. Moreover, because of Qualcomm's promising future, their revenues and hence stock values will only continue to increase. Therefore, we are recommending investing in this company not only for the short term but as well as the long term.
See 10-Form
http://investor.qualcomm.com/sec.cfm?DocType=Annual&Year=
