Intel Corporation (INTC)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.54 | 1.57 | 2.13 | 1.91 | 1.40 |
| Quick ratio | 1.02 | 1.01 | 0.60 | 0.61 | 0.58 |
| Cash ratio | 0.89 | 0.88 | 0.25 | 0.33 | 0.24 |
Intel Corporation's liquidity ratios indicate its ability to meet short-term obligations effectively. The current ratio, which measures the company's ability to cover its current liabilities with current assets, has shown a decreasing trend over the past five years, from 1.40 in 2019 to 1.54 in 2023. Despite this decline, the current ratio remains above 1, suggesting that Intel has more than sufficient current assets to cover its short-term liabilities.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also shows a fluctuating trend for Intel. The quick ratio has improved slightly from 0.58 in 2019 to 1.02 in 2023. This indicates that Intel has a healthier proportion of highly liquid assets to cover immediate liabilities.
The cash ratio, which indicates the proportion of cash and cash equivalents to current liabilities, has improved significantly over the same period. Intel's cash ratio has increased from 0.24 in 2019 to 0.89 in 2023, suggesting a strengthening liquidity position and ability to cover current obligations with cash on hand.
Overall, Intel Corporation's liquidity ratios have shown varying trends over the past five years. The company appears to have improved its liquidity position, with a stronger ability to cover short-term obligations with liquid assets, particularly cash. However, the decreasing current ratio may warrant further monitoring to ensure ongoing liquidity and financial stability.
See also:
Intel Corporation Liquidity Ratios
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 46.80 | 54.59 | 83.98 | 57.28 | 85.81 |
The cash conversion cycle of Intel Corporation has shown fluctuating trends over the past five years. In 2023, the company's cash conversion cycle decreased to 46.80 days from 54.59 days in 2022, indicating an improvement in the efficiency of its working capital management. This reduction suggests that Intel is taking less time to convert its investments in inventory into cash from sales.
Comparing to 2021 and 2020, where the cash conversion cycle was relatively longer at 83.98 days and 57.28 days respectively, the latest figure represents a positive development. The significant decrease in 2023 compared to 2021 reflects a more streamlined process of managing the company's cash flows, inventory, and accounts receivable.
Moreover, looking back at 2019 when the cash conversion cycle was at 85.81 days, the current cycle of 46.80 days signifies a substantial enhancement in Intel's operational efficiency and liquidity management. This improvement suggests that Intel has been able to optimize its processes to generate cash more quickly, which may positively impact its overall financial health and profitability.
Overall, the decreasing trend in Intel Corporation's cash conversion cycle indicates an improvement in its ability to efficiently convert its resources into cash, reflecting positively on the company's working capital management and operational effectiveness.