Intel Corporation (INTC)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	49,661,000	39,844,000	45,099,000	46,217,000	42,390,000
Inventory	US$ in thousands	12,198,000	11,127,000	13,224,000	10,776,000	8,427,000
Inventory turnover		4.07	3.58	3.41	4.29	5.03

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $49,661,000K ÷ $12,198,000K
= 4.07

Inventory turnover is an essential ratio for evaluating how efficiently a company manages its inventory. In the case of Intel Corporation, the trend in inventory turnover over the past five years indicates a decrease from 5.03 in December 2020 to 4.07 in December 2024.

A higher inventory turnover ratio is generally preferred as it signifies that Intel is selling its inventory more frequently, which can indicate strong sales and effective inventory management. However, the decreasing trend in Intel's inventory turnover over the period suggests that the company may be holding onto its inventory for longer periods or facing challenges in selling goods quickly.

A lower inventory turnover ratio can be a sign of overstocking, obsolescence, or declining demand for Intel's products. It may also indicate inefficiencies in the supply chain or production process. Intel should closely monitor its inventory levels and analyze the reasons behind the decreasing turnover ratio to optimize its inventory management and remain competitive in the market.