Group:Jgs Name:Xiaoning Jia, Ying Gu, Song Song IN-CLASS EXERCISE: Analyzing Income Statement and CFS
Group:Jgs Name:Xiaoning Jia, Ying Gu, Song Song IN-CLASS EXERCISE: Analyzing Income Statement and CFS
Group:Jgs Name:Xiaoning Jia, Ying Gu, Song Song IN-CLASS EXERCISE: Analyzing Income Statement and CFS
STRENGTHS:
The net investing cash flow has increased 99.4% from Dec06 to Dec08. Although we
don’t think this is the ture strengths for ADM, it eased the totel cash flow in Dec08
at least.
WEAKNESSES:
AMD company’s core operations has generated much cash outflows. So we think the
company may have a big problem in inventory. Maybe the conpany has no much
cash flow, so they sold their equipments which brought into a decline in production
efficiency. The net financing cash flow decreased 99.4% and CFS decreased 1.67
times between Dec06 and Dec 08. As a result the total cash flow was badly nagetive
$3098mil. So in short period , there will be a big problem for ADM.
If we were investors, we will invest in INTEL corporation.The EPS of
INTEL increasd 6.98% between 2006 and 2008. And the net income also
increased about 4.92%. Alough CFS is not so good in Dec08,their
investing and the company’s core operations good enough to attract us to
invest in.