Intel Corporation (INTC)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	90.99	91.98	102.94	107.03	104.21	102.33	104.61	108.90	109.30	140.97	138.12	140.88	117.15	80.87	73.04	69.82	74.11	83.27	81.47	88.92
Days of sales outstanding (DSO)	days	41.65	20.95	20.49	21.79	23.18	20.83	21.19	—	25.88	—	—	—	44.25	39.54	35.50	34.30	32.77	33.70	34.73	41.12
Number of days of payables	days	93.66	84.45	88.05	79.70	80.34	77.37	76.44	67.75	79.30	78.37	90.14	85.11	62.48	56.06	49.02	44.70	49.08	46.32	45.83	44.60
Cash conversion cycle	days	38.98	28.49	35.37	49.12	47.05	45.79	49.36	41.15	55.88	62.60	47.98	55.78	98.92	64.35	59.53	59.41	57.80	70.64	70.38	85.43

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 90.99 + 41.65 – 93.66
= 38.98

The cash conversion cycle of Intel Corporation has shown some fluctuations over the periods indicated. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to June 30, 2022, the trend in the cash conversion cycle was mostly decreasing, indicating an improvement in the company's efficiency in managing its working capital. This suggests that Intel was able to streamline its operations and convert its resources into cash more quickly during this period.

However, from September 30, 2022, to December 31, 2024, the cash conversion cycle increased slightly, signifying a potential slowdown in the company's ability to efficiently manage its working capital. This could be due to various factors such as changes in inventory management practices or payment terms with suppliers and customers.

Overall, maintaining a lower cash conversion cycle is beneficial for a company as it signifies quicker cash generation and a more efficient use of resources. Intel Corporation should continue to monitor and actively manage its cash conversion cycle to ensure optimal working capital efficiency in the future.