Simple analysis on Applied Materials

Today i am doing a simple financial analysis.

In the morning when i surf on the web, i saw a news.

At that moment, an idea occur to me: why not try to do a financial analysis on Applied Materials?

Hence i google for the Applied Materials(AM) annual reports, it's so easy to find out, right here!

And then, since i am very lazy(羞), i choose to trust it a well-honor company, so i directly focus on the cash flow statement.

(獵豹大大有說過：現金流量表的重點在於會計盈餘和來自營運活動現金流量之差異分析。)
As the JAGUAR saying:
the key-point of cash flow statement lies on the difference analysis between accounting earning and cash flow from operating.

So I take a look on the 2007's Net Income(NI) and cash flow from operating(CFFO), they are 1710 and 2209, respectively.

I found that the Net Income are slowly, yearly grow. Meanwhile, the CFFO grows faster than NI.

Second, the Free Cash Flow, cash flow from operating+cash flow from investing, suddenly jump in 2006. I more focus on the details, it shows that the point is the Incr (Decr) in Securities Invest.

What does Incr (Decr) in Securities Invest. mean? I continue click the link. Here explains.

It seems in 2006, AM sold a lot of stocks, and make a huge fortune!

If this term is neglected, the FCF grows will be more smooth.
3rd, Issue (Purchase) of Equity in 2006 is so big, it means AM buy a lot of stock in 2006.

There are still much can analysis, but not to mention that, above shows obviously that AM's core business is still strong, but on the other hand, involve in too much in public market.

I hope AM not the next Flextronics International Ltd!