Intel Corporation (INTC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 8,249,000 | 7,079,000 | 11,144,000 | 4,827,000 | 5,865,000 |
| Short-term investments | US$ in thousands | 13,813,000 | 17,955,000 | 17,194,000 | 2,103,000 | 2,292,000 |
| Receivables | US$ in thousands | 6,078,000 | 3,461,000 | 4,271,000 | 9,480,000 | 6,913,000 |
| Total current liabilities | US$ in thousands | 35,666,000 | 28,053,000 | 32,155,000 | 27,462,000 | 24,754,000 |
| Quick ratio | 0.79 | 1.02 | 1.01 | 0.60 | 0.61 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,249,000K
+ $13,813,000K
+ $6,078,000K)
÷ $35,666,000K
= 0.79
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at Intel Corporation's quick ratio over the past five years, we observe the following trend:
- In December 31, 2020, the quick ratio was 0.61, indicating that Intel had $0.61 in liquid assets available to cover each $1 of current liabilities. This suggests a potential liquidity concern, as a ratio below 1 may signal difficulty in meeting short-term obligations.
- The quick ratio slightly decreased to 0.60 by December 31, 2021, which further emphasizes the company's liquidity challenges.
- However, there was a significant improvement in the quick ratio for the subsequent years. By December 31, 2022, it increased to 1.01, indicating that Intel had more than enough liquid assets to cover its current liabilities. This suggests a healthier liquidity position for the company.
- The trend continued to strengthen in December 31, 2023, with a quick ratio of 1.02, showing a continued improvement in Intel's ability to meet short-term obligations.
- By December 31, 2024, the quick ratio decreased slightly to 0.79, indicating a decrease in liquidity compared to the previous year. While still above 1, this decrease may be worth monitoring to ensure Intel's continued ability to meet its short-term obligations.
In conclusion, Intel Corporation's quick ratio has shown fluctuations over the five-year period, with recent years demonstrating a positive improvement in liquidity levels. However, the slight decrease in the ratio in 2024 warrants attention to ensure the company's continued ability to cover its short-term liabilities effectively.
Peer comparison
Dec 31, 2024