Intel Corporation (INTC)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	89.65	101.93	107.03	85.10	72.56
Days of sales outstanding (DSO)	days	41.42	23.45	25.22	44.27	32.78
Number of days of payables	days	92.28	78.58	77.66	45.39	48.06
Cash conversion cycle	days	38.79	46.80	54.59	83.98	57.28

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.65 + 41.42 – 92.28
= 38.79

The cash conversion cycle of Intel Corporation, a key metric in assessing its efficiency in managing working capital, has displayed fluctuations over the past five years.

As of December 31, 2020, the cash conversion cycle stood at 57.28 days. This metric increased to 83.98 days by December 31, 2021, implying a delay in converting investments in inventory and receivables into cash.

However, the company showed improvement in its working capital efficiency by reducing the cash conversion cycle to 54.59 days by the end of December 31, 2022. This downward trend continued, with a further decrease to 46.80 days by December 31, 2023, indicating enhanced operational effectiveness in managing cash flow.

Notably, Intel achieved its most efficient cash conversion cycle in the latest period ending December 31, 2024, with a significant decrease to 38.79 days. This sharp decline suggests the company's enhanced ability to streamline its working capital management processes, ultimately leading to quicker cash conversion cycles.

Overall, the fluctuating trend in Intel Corporation's cash conversion cycle over the years reflects the company's efforts to optimize its working capital efficiency and improve cash flow management, contributing to its overall financial performance.