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Financial Analysis of Qualcomm Incorporated

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Submitted By feedthepenguins
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Financial Analysis of
Qualcomm Incorporated
Years: 2009-1011

By:
Anne Putnam
Heather Coonradt
Michael Moratelli

Financial Analysis
GEB 6930
Dr. Gary Patterson
TABLE OF CONTENTS
Statement of Cash Flows…………………………………….………………………………………………….………….…..3
Analysis of Statement of Cash Flows………………………………………………………………………………….……4
ROA ratios………………………………………………………………………………………………………..…………………….5
Trade-offs profit margin/asset turnover………………………………………………………………………………….6
ROCE ratios and analysis…..…………………………………………………………………………………………………….7
Consistency/Differences between ROA and ROCE………………………………………………………………….8
Short-term Liquidity (Working Capital Ratios)…………………………………………………………………………9
Z-scores and Bankruptcy Risk……………………………….……………………………………………………………….10
Forecasting ratios/calculations……………………………………………………………………………………………11-12
Forecasted Statement of Cash Flows…………………………………………………………………………………….13
Statement of Cash Flows Break Down………………………………………………………………………………….14
Statement of Cash Flows Analysis………………………………………………………………………………………..15
Free Cash Flows…………………………………………………………………………………………………………………..16
Free Cash Flows Analysis……………………………………………………………………………………………………..17

1C. Analysis of Cash Flow Findings:
Qualcomm is a mature company that has operated in the telecommunication industry for over 25 years. The financial information over the three year period that was provided has depicted a healthy company. Qualcomm’s net income has doubled from 2009-2010 and has increased another 30% from 2010-2011. This is attributable to the increase in equipment, services, and licensing incomes while continually keeping the company’s operating costs low. In June of 2010, the company won a licensing agreement to operate in India which helped increase the amount of income from licenses in 2011. In 2010 the cash flow from operations far exceeded the net income mostly due to the increase in

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