Intel Corporation (INTC)

Receivables 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
Receivables	US$ in thousands	6,078,000	3,461,000	4,271,000	9,480,000	6,913,000
Receivables turnover		8.81	15.57	14.47	8.25	11.14

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $53,565,000K ÷ $6,078,000K
= 8.81

The receivables turnover ratio reflects how efficiently Intel Corporation is managing its accounts receivable collection process.

In 2020, the company's receivables turnover ratio was 11.14, implying that accounts receivable turned over approximately 11.14 times during the year. This indicates that Intel was relatively efficient in collecting payment from customers in 2020.

However, in 2021, the receivables turnover ratio decreased to 8.25, suggesting that it took longer for the company to collect payments from customers compared to the previous year. This could be a red flag as a lower receivables turnover ratio may indicate potential issues with collecting receivables promptly.

The ratio sharply improved in 2022 and 2023, reaching 14.47 and 15.57, respectively. These significant increases indicate that Intel made substantial improvements in its accounts receivable collection efficiency during these years. A higher turnover ratio is generally preferable as it signifies that the company is collecting payments more quickly.

In 2024, the receivables turnover ratio dropped to 8.81, showing a decline in the efficiency of accounts receivable collection compared to the preceding years. It is essential for Intel to address this decrease and potentially implement strategies to enhance its collection process and maintain a healthy turnover ratio.

Overall, fluctuations in the receivables turnover ratio for Intel Corporation over the years reflect changes in the company's ability to collect payments promptly from customers. Keeping a close eye on this ratio and implementing appropriate measures to improve receivables management can contribute to the company's financial health and operational efficiency.