Intel Corporation (INTC)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	101.93	107.03	85.10	72.56	87.28
Days of sales outstanding (DSO)	days	23.45	25.22	44.27	32.78	39.74
Number of days of payables	days	78.58	77.66	45.39	48.06	41.20
Cash conversion cycle	days	46.80	54.59	83.98	57.28	85.81

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 101.93 + 23.45 – 78.58
= 46.80

Intel Corporation's cash conversion cycle has shown fluctuations over the past five years.

As of December 31, 2023, Intel's cash conversion cycle stands at 46.80 days, showing an improvement from the previous year. This indicates that the company is managing its working capital more efficiently, resulting in a quicker conversion of inventory into cash.

In contrast, in 2021 and 2019, Intel had longer cash conversion cycles of 83.98 days and 85.81 days, respectively. This suggests that the company took longer to convert its investments in inventory into cash receipts from sales during those years.

The decrease in the cash conversion cycle from 2021 to 2023 could be attributed to improved inventory management, faster collection of receivables, or more efficient payment of payables. These factors can positively impact Intel's liquidity and working capital management.

Overall, a decreasing trend in the cash conversion cycle indicates that Intel Corporation has been enhancing its operational efficiency and financial performance in terms of managing its working capital effectively.