Question
Nvidia 2022 Current Ratio: 28,829 / 4,335 = 6,65 Working Capital: 28,829- 4.335 = 24,494 Quick Ratio: 25,858 / 4,335 = 5,9 Debt Ratio: 17,575
Nvidia 2022 Current Ratio: 28,829 / 4,335 = 6,65 Working Capital: 28,829- 4.335 = 24,494 Quick Ratio: 25,858 / 4,335 = 5,9 Debt Ratio: 17,575 / 44,187 = %39,7 Equity Ratio: 26,612 / 44,187 = %60 ROE: 9,752 / 26,612 = %36 ROA: 9,752 / 44,187 = %22 -------------------------------------------------------
Intel 2022 Current Ratio: 50,407 / 32,155 = 1,567 Working Capital: 50,407 - 32,155 = 18,252 Quick Ratio: (11,144 + 17,194 + 4,133) / 32,155 = 1,009 Debt Ratio: 78,817 / 182,103 = % 43,2 Equity Ratio: 103,286 / 182,103 = %56,7 ROE: 8,017 / 103,286 = %7,76 ROA: 8,017 / 182,103 = % 4,4
Your mission is to assist your best friend, who intends to invest $1,500 in the stock market. Given your current course in "Financial Statement Analysis," your friend asks for your opinion on two companies: INTEL CORPORATION and NVIDIA CORPORATION. Your role is to provide an in-depth analysis to aid in the investment decision.
With the given numbers, answer the questions below.
Step 2. Interpretation of Financial Ratios: Compare the calculated ratios of both companies. Provide a brief interpretation for each ratio, discussing what each of them indicates about the companies' financial health, operational efficiency, and risk levels.
Step 3. Investment Recommendation: Based on your ratio analysis and interpretation, recommend one of the two companies for your friend to invest in. Ensure your recommendation is precise, clear, and well-supported.
Step 4. Justification of Recommendation: Justify your investment recommendation from various perspectives. Consider factors such as the companies' financial performance, stability, growth prospects, and industry position. Also, contemplate potential risks and opportunities that each company might face in the future. Your arguments should be detailed, robust, and based on the analyzed financial ratios and other relevant considerations.
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