Intel Corporation (INTC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 53,565,000 | 53,879,000 | 61,811,000 | 78,168,000 | 76,984,000 |
| Property, plant and equipment | US$ in thousands | 107,919,000 | 96,647,000 | 80,860,000 | 63,245,000 | 56,584,000 |
| Fixed asset turnover | 0.50 | 0.56 | 0.76 | 1.24 | 1.36 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $53,565,000K ÷ $107,919,000K
= 0.50
The fixed asset turnover ratio is a financial metric used to assess a company's efficiency in generating revenue from its investments in fixed assets. Intel Corporation's fixed asset turnover ratio has decreased over the years, from 1.36 in 2020 to 0.50 in 2024. This downward trend indicates a decline in the company's ability to generate sales from its fixed assets.
A fixed asset turnover ratio of 1.36 in 2020 means that for every dollar invested in fixed assets, Intel generated $1.36 in revenue. However, by 2024, the ratio had dropped to 0.50, implying that for every dollar invested in fixed assets, only $0.50 in revenue was generated.
The decreasing trend in the fixed asset turnover ratio could suggest inefficiencies in Intel's utilization of its fixed assets and could be a cause for concern. A declining fixed asset turnover ratio may indicate that the company's investments in fixed assets are not effectively contributing to revenue generation. Intel may need to review and optimize its asset base or operational processes to improve its fixed asset turnover and enhance overall efficiency.
Peer comparison
Dec 31, 2024