Free Essay

The Performance to Cost Ratio

In: Computers and Technology

Submitted By Dagradt
Words 1252
Pages 6
Performance to Cost Ratio:
AMD vs. Intel United in the race to revolutionize the way computers drive our era, Advanced Micro Devices (AMD), and Integrated Electronics (Intel) stand as beacons in the ever changing mist of intuition and unmeasured evolution. No matter whether you choose AMD or Intel the question at hand never changes, “What quality for what price?” Quality and expense derive the fundamental balance of performance at a reasonable price. The performance to cost ratio, even though consciously imperceptible, maintains the scales of reasonability in the grand compendium of computer structure. History has shown us that moving forward is the only way to succeed. With the founding of AMD in 1969 and Intel in 1968, these two corporations have gained strength and have shown immense prowess in the computer industry. Both companies, in their own way, have given society the best in our radically changing era. With Intel providing their products with end-user ease in mind, and AMD opening new doors to end-user personalization, both of these companies give a wide range of specialized products. With a price range as vast as the products each produce, there is a plethora of potential component combinations to match all socioeconomic classes. Keeping in mind the components each of these companies produce, to say one is better than the other is an opinion I do not wish to convey, rather I would give each of these giants the dues they deserve.
Advanced Micro Devices (AMD) – Brings a new user defined way of computer construction with a price range to make even the economically suppressed happy to dish out the cash. With industry leading products in graphics, video, and multimedia (amd.com), AMD has captured the eye of many computer enthusiasts. AMD lets the end-user define the basics and fundamentals of how a component will work. By giving unique system applications, AMD gives the end-user the ability to redefine almost any component process to the users own unique specifications. With this new innovation, computer builders are given the chance to create enhanced end products at a price that surprisingly is cheaper then Intel’s more structured components. In doing this, AMD has not only gained a vast community of clientele, but has provided end-users a new and more personalized experience that won’t break the bank. “Performance at a price that is more than reasonable seems to be a way of life at AMD” said Steve Svoboda, computer consultant. According to Svoboda, AMD may not hold the bar when it comes to flat out performance. Intel has and most likely will always hold this bar, forever taunting AMD. Yet in doing this Intel is giving AMD the fuel to achieve more and more as AMD strives to take the lead.
Integrated Electronics (Intel) – Being the most common name in the computer community has brought their best to the table time and time again. Proven against the repetitious wear and tear of the user, Intel gives little room for error when it comes to component use. While Intel is more geared towards networking and communications (intel.com) it has not stopped this company from branching into new horizons. Intel’s components tend to be aimed for the end-user who wants an “out of the box” system. Each component comes pre-configured to the companies or clients specs, ready to be used without any tweaking. With this being said Intel’s prices tend to be higher and in some cases up to a four hundred percent increase over AMD’s components. Please don’t get me wrong when I say that “AMD will give you more bang for your buck”, this is only true for the fact that in the hands of an experienced computer enthusiast AMD’s components can and in many cases will surpass those of Intel’s. As Intel is the more costly of the two it also gives the best raw performance without the need to change the factory issued settings.
So what do these two leaders have to do with the balance of performance and cost? The answer is everything. While Intel is tailored for the use of an individual with little to no computer knowledge, AMD is more tailored to the individual that wishes to expand his or her know how and push the mechanics of the device to new heights. Thus it comes down to this, performance for what cost? Basic knowledge says that in order to have a high performance part one must pay a reasonably high cost. In response to this Svoboda stated, “As this thought is common in many cases, it is not always the truth. With Intel you get the guarantee of performance right out of the box, AMD also gives this comfort but at a lessened value. With a component purchased from AMD you get a base performance value with the ability to exponentially increase performance.” So your choices are clear, will you pick Intel’s out of the box components, or will you venture the road of infinite options? Infinite options may sound like heaven, but not everyone knows the inner workings of a computer system. On the other hand Intel’s out of the box components come in a wide variety of prices, but you may not be able to afford the system you want or need.
So where is the happy medium in performance and cost? AMD and Intel both revolve around one primary thought, processing performance. With a purchase from either company you get the same basic end result, a component built to closely provide the performance that will meet your needs. Many components in today’s market will have a processor from one of these two companies, or a processor that was derived from one. In a pre-built system the user gets, based off the price at which it was purchased, both good and reasonable quality parts, and in some cases parts that should not have ever left the factory. You many still get components that allow you to tweak and modify, but the options will be limited as not all the components will be compatible in the modification. With a system built from scratch the user can choose to select components from either company, making sure that modification will be compatible with all components. This is where the performance to cost ratio really comes into play. As a user selects the components needed, he or she can match performance and part quality with their budget to even out overall system performance. In pre-built systems the overall cost goes up as more modifiable parts are added to the system.
In the end the choice is ultimately yours, with infinite possibilities and a price to match, the foundation of performance will always be coupled with price, these cannot exist independent of each other and must be accounted for. So whether it be a new component, car, or choosing which variety of apple at your local grocery store, I urge you to take the time and think of your options. The performance to cost ratio can be seen in all aspects of our daily life, I have merely chosen one point of view to share with you.

Works Cited
"AMD Corporate Information." AMD. Web. 30 May 2011. <http://www.amd.com/us/aboutamd/corporate-information/Pages/corporate-info.aspx>.
"FREQUENTLY ASKED QUESTIONS." Intel. Web. 30 May 2011. <http://www.intel.com/about/companyinfo/FAQ/index.htm?iid=subhdr+info_faqs>.
Svoboda, Steve. "AMD vs. Intel." Telephone interview. 11 May 22011.

Similar Documents

Premium Essay

Ratios

...A Summary of Key Financial Ratios How They Are Calculated and What They Show Profitability Ratios 1. Gross profit margin Sales - Cost of goods sold Sales An indication of the total margin available to cover operating expenses and yield a profit. 2. Operating profit margin (or Return on Sales) Profits before taxes and interest Sales An indication of the firm's profitability from current operations without regard to the interest charges accruing from the capital structure 3. Net profit margin (or net Return on sales) Profits after taxes Sales Shows after tax profits per dollar of sales. Subpar profit margins indicate that the firm's sales prices are relatively low or that costs are relatively high, or both. 4. Return on total Assets Profits after taxes Total assets or Profits after taxes + interest Total assets A measure of the return on total investment the enterprise. It is sometimes desirable to add interest to after tax profits to form the numerator of the ratio since total assets are financed by creditors as well as by stockholders; hence, it is accurate to measure the productivity of assets by the returns provided to both classes of investors. 5. Return on stockholder's equity (or return on net worth) Profits after taxes Total stockholders' equity A measure of the rate of return on stockholders' investment in the enterprise. 6. Return on common equity (Profits after taxes -Preferred stock dividends) (Total stockholders" equity - Par value of preferred......

Words: 913 - Pages: 4

Premium Essay

Analysis of Data(Cost, Time, Performance) of Construction of Cafeteria

...INFORMATION TECHNIOLOGY SECTOR 128 NOIDA [pic] PM PROJECT ESTABLISHING COLLEGE FOOD JOINT SUBMITED BY: Anurag Sundriyal (9910103534) Charu Chandra (9910103541) Dipti Jain (9910103508) Joy Gupta ( 9910103576) CONTENTS • Acknowledgments ……………………………………………………………………3 • Project Outline…..…………………………………………………………………….4 • Project Objective……...……………………………………………………………....5 • Project Planning….………………………………………………………..…………...6 • Project Life Cycle……………………………………………………………………...8 • Work Breakdown Structure……….…………………………………………………10 • Responsibility Matrix………….……………………………………………………..11 • Budgeting and Cost Estimation……………………………...………….…………...13 • Scheduling…………..……………………………………………………………..…15 • PERT/CPM analysis….…………………………………………………………..…..17 • Resource Allocation…………………………………………………………………..18 • Concept of crashing……………………………………………………………..……19 • Project monitoring and control………………………………………………………..20 • Conclusion…………………………………………………………………………….23 ACKNOWLEDGEMENT We have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. We would like to extend our sincere thanks to all of them. We are highly indebted to Mrs. Anshu Banwari for her guidance and constant supervision......

Words: 2917 - Pages: 12

Premium Essay

Ratio

...[pic] ANALYSIS OF FINANCIAL STATEMENTS OF HOTEL LEELA VENTURES TABLE OF CONTENTS :: 1) INTRODUCTION TO HOTEL INDUSTRY 2) PROFILE OF HOTEL LEELA VENTURES LTD. 3) OBJECTIVE OF ANALYSIS AND METHODOLOGY 4) FINANCIAL ANALYSIS USING RATIO ANALYSIS 5) INTERPRETATIONS OF THE RATIOS 6) RECOMMENDATIONS 7) REFERENCES INTRODUCTION TO HOTEL INDUSTRY Over the last decade and half the mad rush to India for business opportunities has intensified and elevated room rates and occupancy levels in India. Even budget hotels are charging USD 250 per day. The successful growth story of 'Hotel Industry in India' seconds only to China in Asia Pacific.  'Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010 – to accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of 150,000 rooms fueling hotel room rates across India. With tremendous pull of opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate, demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving......

Words: 20390 - Pages: 82

Premium Essay

Accessing the Financial Performance Using Accounting Ratios of Barclays Bank Ghana Limited

...1.0 INTRODUCTION 1 1.2 OVERVIEW OF INDUSTRY 2 2.0 COMPANY PROFILE 14 2.1 WHAT IS IMPRESSIVE ABOUT BBGL 15 3. ACCOUNTING POLICIES 17 4.0 FINANCIAL ANALYSIS 20 4.1 RATIO ANALYSIS 20 4.2 COMMON SIZE ANALYSIS 24 4.3 TREND ANALYSIS 25 5.0 EVALUATION AND CONCLUSION 27 6.0 WORKINGS 28 7.0 REFERENCES 34 1.0 INTRODUCTION With encouragements from the Ghana Stock Exchange for companies to be listed, it is very expedient that companies who show interest in being listed provide a profitable and an efficient view of the company to prospective investors. This is achieved in its financial statements. The decision to invest or not to invest in a company depends on the effectiveness and efficiency of the firm under consideration. Using various financial statement analysis tools, the potential investor may be able to make a decision to invest. The decision to invest does not only affect the investor but the firm as a whole. The firm will be able to raise enough capital to finance its operations. For firms whose capital requirements do not meet the requirement set by the bank of Ghana in February 2008 with deadline being December 2012, this is an avenue where such firms can fulfil this new requirement. With the current developments in the banking industry, banks of which Barclays bank is of no exception, should work at not only being profitable but also given investors value for their money. 1.2 OVERVIEW OF INDUSTRY In anticipation of the expected economic growth......

Words: 7280 - Pages: 30

Premium Essay

Ratio

... | |Working Capital is more a measure of cash flow than a ratio. The result of this calculation must be a positive number. It is calculated | |as shown below: | |Working Capital = Total Current Assets - Total Current Liabilities | |Bankers look at Net Working Capital over time to determine a company's ability to weather financial crises. Loans are often tied to | |minimum working capital requirements. | |Accounting Ratios and its utility | |A relationship between various accounting figures, which are connected with each other, expressed in mathematical terms, is called | |accounting ratios. | |According to Kennedy and Macmillan, "The relationship of one item to another expressed in simple mathematical form is known as ratio." | |Robert Anthony defines a ratio as – "simply one number expressed in terms of another." | |Accounting ratios are very useful as they briefly summarise the result of......

Words: 3169 - Pages: 13

Premium Essay

Ratio and Financial Ratio Analyisis

...Ratio and Financial Statements Analysis Kimberly Y. Gruber University of Maryland University College Dr. Sunando Sengupta 07/25/2013 Turnitin Score: 23% Executive Summary The purpose of this paper is to examine ratio and financial statement analysis. Such analysis is a useful tool for managers and stakeholders to evaluate a company’s financial health in order to identify opportunities for growth and areas of weakness so as to institute corrective measures.  Financial statements are used in order to predict trends of cash flow within the business as well as predict the potential of a business and if they are capable of financial growth. Ratio analysis examines the probability of a company’s profit or a company’s loss. This paper will examine the benefits and limitations of ratio analysis, explain what factors impact the meaningfulness of such measures and what new practices or theories may be emerging regarding the application of ratio and financial statement. The paper concludes that ratio and financial statements is an essential tool used in analyzing a company’s profit. Introduction to Ratio and Financial Statement Analysis Though there are various methods for monitoring the liquidity of businesses the most common has been the use of financial ratios. Ratio analysis is an established technique—involving the relationship between two or more variables--that is used to conduct qualitative analysis of information contained in a company’s financial statement......

Words: 1722 - Pages: 7

Free Essay

Analysis of Performance in the Retail Sector Using Ratio Analysis

...Abstract The purpose of this assignment is to critically examine the performance of two companies using Ratio analysis over the a period of five years (2008-2012), in order to recommend the best company for investment, justified by the data collected, analysed using ratio analysis and interpreted The assignment, will compare two of the largest retail outlets in th UK in sainbury and Tesco. It will show that Tesco has higher Profitability, Liquidity and Gearing ratios than Sainsbury, While in investment ratios Sainsbury exceeds Tesco. However it will also show that over the five year period Sainsbury as more consistent ratio outputs than Tesco, whom go into a steep declines in various ratios during the 2012 period. This assignment will show that Sainsbury on the basis of consistence is a better investment option, while highlighting that the ratio cannot be the only tool used in analysing comparatively the two companies. Table of Contents Introduction1 Selection of companies2 3. Ratio Analysis3 3.1 Profitability Ratios4 3.1.1Return On Capital Employed4 3.1.2 Gross Profit Margin6 3.1.3 Profit Margin7 3.2 Liquidity Ratios8 3.2.1 Current8 3.2.2 Liquidity9 3.3 Gearing Ratio10 3.4 Investment Ratios12 3.4.1Dividen Yield12 3.4.2Pric to Earning13 4.0 Critical Analysis15 5.0 Conclusion16 APPENDIX17 Bibliography Table of Tables Table 1.1……………………………………………………………..4 Table 1.2……………………………………………………………..6 Table 1.3……………………………………………………………..7 Table......

Words: 3138 - Pages: 13

Premium Essay

Ratio

... RATIO ANALYSIS: Fundamental Analysis has a very broad scope. One aspect looks at the general (qualitative) factors of a company. The other side considers tangible and measurable factors (quantitative). This means crunching and analyzing numbers from the financial statements. If used in conjunction with other methods, quantitative analysis can produce excellent results. Ratio analysis isn't just comparing different numbers from the balance sheet, income statement, and cash flow statement. It's comparing the number against previous years, other companies, the industry, or even the economy in general. Ratios look at the relationships between individual values and relate them to how a company has performed in the past, and might perform in the future. MEANING OF RATIO: A ratio is one figure express in terms of another figure. It is a mathematical yardstick that measures the relationship two figures, which are related to each other and mutually interdependent. Ratio is express by dividing one figure by the other related figure. Thus a ratio is an expression relating one number to another. It is simply the quotient of two numbers. It can be expressed as a fraction or as a decimal or as a pure ratio or in absolute figures as “ so many times”. As accounting ratio is an expression relating two figures or accounts or two sets of account heads or group contain in the financial statements. MEANING OF RATIO ANALYSIS: Ratio......

Words: 12924 - Pages: 52

Premium Essay

Ratio

...DEFINITION OF 'SOLVENCY RATIO'A key metric used to measure an enterprise’s ability to meet its debt and other obligations. The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities. The lower a company's solvency ratio, the greater the probability that it will default on its debt obligations. The measure is usually calculated as follows: Solvency ratio, with regard to an insurance company, means the size of its capital relative to the premiums written, and measures the risk an insurer faces of claims it cannot cover. The solvency ratio is only one of the metrics used to determine whether a company can stay solvent. Other solvency ratios include debt to equity, total debt to total assets, and interest coverage ratios. However, the solvency ratio is a comprehensive measure of solvency, as it measures cash flow – rather than net income – by including depreciation to assess a company’s capacity to stay afloat. It measures this cash flow capacity in relation to all liabilities, rather than only debt. Apart from debt and borrowings, other liabilities include short-term ones such as accounts payable and long-term ones such as capital lease and pension plan obligations. Measuring cash flow rather than net income is a better determinant of solvency, especially for companies that incur large amounts of depreciation for their assets but have low levels of actual profitability. Similarly, assessing a company’s ability...

Words: 1883 - Pages: 8

Premium Essay

Accounting Ratios and Monitoring Business Performance

...Task 11 (D2) Accounting ratios and monitoring business performance Ratio analysis can be used as a management tool to monitor and improve the performance of HSBC as well as being used by those outside of the organisation such as bank regulators, potential shareholders and suppliers to look at the performance of HSBC and compare it with other similar organisations. Information used for comparison must be accurate - otherwise the results will be misleading. There are four main methods of ratio analysis - liquidity, solvency, efficiency and profitability. If ratios of companies are to be compared it is important that the companies are in the same industry. It would be appropriate to compare HSBC ratios with other the ratios of other banks but not for example a construction company. Liquidity ratios These ratios should be used on a daily basis by management to monitor performance and manage cash flow risks. There are three types of liquidity ratio: * Current ratio - current assets divided by current liabilities. This assesses whether you have sufficient assets to cover your liabilities. A ratio of two for example shows you have twice as many current assets as current liabilities. * Quick or acid-test ratio - current assets (excluding inventory) divided by current liabilities. A ratio of one shows liquidity levels are high - an indication of solid financial health. * Defensive interval - liquid assets divided by daily operating expenses. This measures how......

Words: 1053 - Pages: 5

Premium Essay

Ratios

...Gross profit + Operating margin * Increase * Good * Sales increase more than costs * full interior design service. In 2012, customers prefer this service (due to trend – Increase in purchasing power and prefer their own design). Generated $50m additional revenue but cost also increases. However the sales increase more than the cost. Thus, gross profit increase. * More efficient in terms of cost and operating expense and finance cost. (Reductions) * Fully utilized resourcers – hire competent workers,etc - reduce cost * Finance cost reduce – In 2012, they buy another $200m of bank loan which has 10% of interest. However, due to the overdraft of 126-120 = 6. Their current finance cost is 20-6 = 14. Thus there is changes in the EBT – cost reduce * Sales increase 8% more than the market share in 2012. X In 2011, there might incur some sales but we only recognize it after 2012. One of its policies stated that, if the completion of works is 20%, we only recognize it into financial statement in sales. X In 2012, goods in progress in 2011 will be fully paid by customers after completion. Thus, the incurred amount will be recognize in 2012 after the completion. Asset turnover * Reduce * Bad * Capital employed increase more than sales * There are chges in the capital employed in 2012 due to Alberto Blanc (held the roles of Chairman and Chief Executive) In November 2012, the floatation issued 120 new shares. * Borrowing increases. * It’s bad......

Words: 1250 - Pages: 5

Premium Essay

Performance Evaluation and Ratio Analysis of Pharmaceutical Company in Bangladesh

...Performance evaluation and ratio analysis of Pharmaceutical Company in Bangladesh Faruk Hossan Md Ahsan Habib Supervisor: José Ferraz Nunes Examiner: Bengt Kjellén Master‟s thesis in international Business 15 ECTS Department of Economic and Informatics University West Spring term 2010 0 ABSTRACT The thesis applies performance evaluation of pharmaceutical company in Bangladesh. It means evaluate how well the company performs. The main aim is achieved through ratio analysis of two pharmaceutical (Beximco and Square pharmaceutical) companies in Bangladesh. The main data collection from the annual financial reports on Beximco and square pharmaceutical companies in 2007 to 2008.Different financial ratio are evaluated such liquidity ratios, asset management ratios, profitability ratios, market value ratios, debt management ratios and finally measure the best performance between two companies. The mathematical calculation was establish for ratio analysis between two companies from 2007-2008.It is most important factors for performance evaluation. The graphical analysis and comparisons are applies between two companies for measurement of all types of financial ratio analysis. Liquidity ratio is conveying the ability to repay short-term creditors and it total cash. It determines perform of short term creditor of both pharmaceutical companies under the three categories such as current ratio, quick ratio and cash ratio. Asset management ratio is measurement how to......

Words: 12881 - Pages: 52

Premium Essay

Performance Evaluation and Ratio Analysis

...worked as consultant in a number of projects. He has a published text book, four Research Monographs and over twenty research based articles and working papers on issues linked to financial markets and other business and economic matters. 17 sUccess milesTones 18 19 sTaTemenT of corporaTe GoVernance T • • • • • • he corporate governance philosophy of the Company is aimed at assisting the top management in efficient conduct of its affairs as well as in meeting obligations to all the stakeholders and is guided by strong emphasis on transparency, accountability and integrity. It provides the Company with strategic guidance as to how the objectives are set and achieved, how risk is monitored and assessed and how the performance is maximized. Keeping in view the size, complexity and operations, the governance framework of the Company is based on the following principles: That the Board is appropriate in size and members are committed to their respective duties and responsibilities That timely flow of information to the Board and its Committees are ensured to enable them discharge their functions effectively That a sound system of risk management and internal control is in place. That timely and balanced disclosure of all material information concerning the Company is made to all Stakeholders. That all transactions of the Company are transparent and accountability for the same is well established. That all regulatory and statutory rules and regulations are......

Words: 40084 - Pages: 161

Premium Essay

Ratio

...Chique Ltd – Ratio Analysis Ratios One of the best ways to explain financial ratios is to go through them as an example. The following example provides a set of financial accounts for Chique Ltd. from which you are going to calculate important ratios. The Company Chique Ltd is a small company that buys and sells Chinese Antiques. The company employed 14 staff in 2004 which increased to 18 in 2005. All sales and purchases are made on credit. What’s required Chique Ltd is going through some turbulent market conditions and the directors want a report that snapshots the whole organisation. To do this the directors have insisted a ratio analysis is done using the company accounts along with an explanation of what this means to the organisation. They have outlined the requirements below. Profit & Loss Account Profit and loss account for Chique LtdYear ending 30 April 2010 | | £m | Sales revenue | | 236 | | | | Less cost of sales | | | Opening stock | 51 | | Purchases | 71 | | Closing stock | 10 | | Cost of goods | | 132 | | | | Gross profit | | 104 | | | | Expenses | | | Rent and rates | 40 | | Administration | 15 | | Wages | 37 | | Marketing | 10 | | Heat and lighting | 8 | | Miscellaneous | 6 | | Total expenses | | 116 | | | | Net profit | | (12) | Balance Sheet Balance sheet for Chique Ltdon 30 April 2010 | | £m | Fixed Assets | | | Premises | 12 | | ......

Words: 547 - Pages: 3

Premium Essay

Ratios

...The Use of Ratio Analysis Ratio analysis is a tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis to judge the performance of the company. Analyzing ratios is used to evaluate a company's present performance and its possible future performance. In a fact, interpretation of different accounting ratio lets the researcher fully understand the financial condition and performance of a business concern. Ratio itself is the comparison of one figure to another relevant figure. (http://www.investopedia.com/terms/r/ratioanalysis.asp) There are many ratios that you can use to analyze the financial health of a business. In this paper I will discuss four financial performance areas that I think are worth analyzing: Liquidity, profitability, solvency, and efficiency. I will discuss the strengths and weaknesses of using these ratios. First of all, Liquidity is the ability of the firm to convert assets into cash. It is also called marketability or short-term solvency. The liquidity of a business firm is usually of particular interest to its short-term creditors since the liquidity of the firm measures its ability to pay those creditors. Several financial ratios measure the......

Words: 798 - Pages: 4