Intel Corporation (INTC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.38% | 40.30% | 43.46% | 56.05% | 56.65% |
| Operating profit margin | -21.80% | 0.17% | 3.78% | 24.89% | 30.76% |
| Pretax margin | -20.04% | 1.44% | 12.56% | 27.76% | 32.58% |
| Net profit margin | -35.02% | 3.13% | 12.97% | 25.42% | 27.15% |
The gross profit margin of Intel Corporation has shown a decreasing trend over the years, declining from 56.65% in December 2020 to 32.38% in December 2024. This indicates that Intel's profitability from sales after accounting for the cost of goods sold has been decreasing.
Similarly, the operating profit margin has also decreased significantly, dropping from 30.76% in December 2020 to -21.80% in December 2024. This suggests that Intel's ability to generate profits from its core operations has deteriorated, possibly due to increasing operating expenses or declining revenues.
The pretax margin, which measures the company's profitability before taxes, has followed a similar downward trajectory, falling from 32.58% in December 2020 to -20.04% in December 2024. This indicates that Intel's profitability at the pre-tax level has been eroding over the years.
Lastly, the net profit margin, which reflects the company's bottom line profitability, has experienced a significant decline, plummeting from 27.15% in December 2020 to -35.02% in December 2024. This suggests that Intel's net income relative to its revenue has turned negative in the most recent period, indicating losses.
Overall, the profitability ratios of Intel Corporation have deteriorated over the years, with decreasing margins across all levels, signaling potential challenges and a need for strategic measures to improve profitability and financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -5.94% | 0.05% | 1.28% | 11.55% | 15.47% |
| Return on assets (ROA) | -9.55% | 0.88% | 4.40% | 11.80% | 13.65% |
| Return on total capital | -8.02% | 1.08% | 5.94% | 17.30% | 22.36% |
| Return on equity (ROE) | -18.89% | 1.60% | 7.90% | 20.83% | 25.78% |
Intel Corporation's profitability ratios have shown a declining trend over the years based on the provided data.
- Operating return on assets (Operating ROA) decreased from 15.47% in 2020 to 0.05% in 2023, with a significant drop to -5.94% in 2024, indicating decreasing profitability from its core operations.
- Return on assets (ROA) followed a similar pattern, declining from 13.65% in 2020 to -9.55% in 2024, reflecting a reduction in overall profitability relative to Intel's total assets.
- Return on total capital exhibited a downward trend from 22.36% in 2020 to -8.02% in 2024, indicating a decreasing return generated from the total invested capital.
- Return on equity (ROE) also decreased significantly from 25.78% in 2020 to -18.89% in 2024, signaling a declining return to the shareholders' equity invested in the company.
Overall, the decline in profitability ratios for Intel Corporation suggests challenges in generating returns from its assets, operations, capital, and equity over the years, highlighting the need for strategic improvements to enhance profitability and shareholder value.