Intel Corporation (INTC)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.40 | 1.20 | 1.48 | 1.54 |
| Quick ratio | 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 | 0.58 | 0.51 | 0.58 | 0.68 |
| Cash ratio | 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 | 0.24 | 0.23 | 0.27 | 0.31 |
The liquidity ratios of Intel Corporation show the company's ability to meet its short-term financial obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been fluctuating over the past few quarters but has generally remained above 1, indicating that Intel has sufficient current assets to cover its current liabilities. The ratio peaked at 2.13 in March 2022, reflecting strong liquidity, but has since slightly declined.
The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Intel's quick ratio has shown some volatility, with a low of 0.51 in March 2019 and a high of 1.32 in March 2022. The ratio has generally improved since then, indicating that the company has enhanced its ability to meet short-term obligations without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents against current liabilities, has also shown variability over the observed periods. The ratio has fluctuated between 0.23 and 0.89, with the highest value reported in March 2023. This indicates that Intel's cash position has fluctuated in relation to its short-term obligations.
Overall, Intel Corporation has maintained a relatively healthy liquidity position, as evidenced by its current, quick, and cash ratios. However, the company should continue to monitor and manage its liquidity effectively to ensure it can meet its financial obligations promptly.
See also:
Intel Corporation Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 48.18 | 46.92 | 50.61 | 42.96 | 55.88 | 62.60 | 47.98 | 55.78 | 98.92 | 64.35 | 59.53 | 59.41 | 57.80 | 70.64 | 70.38 | 85.43 | 85.78 | 75.41 | 75.39 | 75.88 |
The cash conversion cycle of Intel Corporation has displayed fluctuations over the analyzed periods. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the recent period of Dec 31, 2023, the cash conversion cycle stands at 48.18 days, indicating that Intel takes approximately 48 days to convert its investment in raw materials into cash from sales. This represents an improvement compared to the previous quarter, Sep 30, 2023, where the cycle was 46.92 days.
However, it is noteworthy that Intel's cash conversion cycle has experienced volatility over the past several quarters. For instance, in Mar 31, 2022, the cycle was 55.78 days, which was higher compared to the preceding quarter. This inconsistency in the cycle can indicate challenges in effectively managing inventory or collecting receivables, which can impact the company's liquidity and operational efficiency.
Analyzing the trend over time, Intel Corporation should focus on optimizing its working capital management to reduce the cash conversion cycle. A shorter cycle indicates improved efficiency in converting resources into cash, leading to better liquidity and potentially higher profits. Regular monitoring and strategic adjustments in inventory management, accounts receivable, and accounts payable processes can contribute to streamlining the cash conversion cycle and enhancing the company's financial performance.