Intel Corporation (INTC)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.33 | 1.31 | 1.59 | 1.57 | 1.54 | 1.53 | 1.60 | 1.76 | 1.57 | 1.77 | 1.86 | 2.13 | 2.13 | 2.07 | 1.99 | 1.90 | 1.91 | 1.66 | 1.97 | 1.74 |
| Quick ratio | 0.79 | 0.77 | 1.01 | 0.91 | 1.02 | 0.97 | 1.00 | 1.01 | 1.01 | 0.81 | 0.99 | 1.32 | 0.60 | 0.69 | 0.61 | 0.61 | 0.61 | 0.61 | 0.93 | 0.88 |
| Cash ratio | 0.62 | 0.69 | 0.91 | 0.78 | 0.89 | 0.87 | 0.89 | 1.01 | 0.88 | 0.81 | 0.99 | 1.32 | 0.25 | 0.40 | 0.31 | 0.32 | 0.33 | 0.29 | 0.60 | 0.53 |
The current ratio of Intel Corporation has shown a generally increasing trend over the years, starting at 1.74 as of March 31, 2020, and reaching 1.33 by December 31, 2024. This indicates that Intel's current assets have tended to exceed its current liabilities, providing a higher level of liquidity as time progressed. However, the ratio slightly declined in the most recent quarters of 2024, suggesting a potential need for Intel to keep a close eye on managing its short-term obligations.
On the other hand, Intel's quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, displays a fluctuating pattern during the period under review. The quick ratio was relatively low in the first half of 2020, improved significantly in 2021, and then saw fluctuations until reaching 0.79 by December 31, 2024. This indicates that Intel may face challenges in meeting its immediate short-term liabilities without relying on selling inventory, which may warrant further analysis and attention.
Lastly, the cash ratio of Intel Corporation, which measures the company's ability to cover liabilities with its cash and cash equivalents, exhibited considerable fluctuations during the period. The ratio was notably low in the initial quarters, then surged to higher levels in 2022, and decreased slightly by the end of 2024. This suggests that Intel had varying levels of cash reserves to cover its current liabilities, posing potential risks to its short-term financial health in certain periods.
In summary, while Intel Corporation has shown an improvement in its current ratio over the years, indicating a strengthening liquidity position, its quick ratio and cash ratio have displayed fluctuations, signaling the need for the company to maintain a balance between its current assets and liabilities to ensure financial stability and viability in the short term.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for Intel Corporation has exhibited fluctuations over the specified periods. The cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Intel's cash conversion cycle has shown a downward trend from March 31, 2020, to December 31, 2024, indicating improvements in cash efficiency and working capital management.
For example, the cycle decreased from 85.43 days on March 31, 2020, to 38.98 days on December 31, 2024. This reduction suggests that Intel has been effectively managing its inventory, receivables, and payables to optimize cash flow and liquidity position.
However, there were intermittent increases during some quarters, such as the spike to 98.92 days on December 31, 2021. This rise may have been influenced by factors like changes in sales patterns, inventory management, or payment terms with suppliers or customers.
Overall, Intel has made progress in shortening its cash conversion cycle, which can indicate improved operational efficiency and effective working capital management strategies. This trend suggests that the company may have been successful in streamlining its processes to enhance cash flow and liquidity.