Intel Corporation (INTC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.30% | 43.46% | 56.05% | 56.65% | 59.31% |
| Operating profit margin | 0.17% | 3.78% | 24.89% | 30.76% | 31.01% |
| Pretax margin | 1.44% | 12.56% | 27.76% | 32.58% | 33.86% |
| Net profit margin | 3.13% | 12.97% | 25.42% | 27.15% | 29.62% |
The profitability ratios of Intel Corporation have shown a declining trend over the past five years. The gross profit margin has decreased from 59.31% in 2019 to 40.30% in 2023, indicating a decrease in the profitability of sales after accounting for the cost of goods sold.
Similarly, the operating profit margin has declined significantly from 31.01% in 2019 to 0.17% in 2023, reflecting a decrease in the company's ability to generate profits from its core business operations. The pretax margin has also shown a decreasing trend, dropping from 33.86% in 2019 to 1.44% in 2023, which suggests a reduction in the company's profitability before accounting for taxes.
The net profit margin, representing the company's bottom-line profitability after all expenses have been deducted, has decreased from 29.62% in 2019 to 3.13% in 2023. This decline indicates a decrease in Intel's ability to generate profits relative to its revenue.
Overall, the decreasing trend in profitability ratios for Intel Corporation over the past five years raises concerns about the company's operational efficiency and financial performance. Investors and stakeholders may need to closely monitor these trends and assess the underlying factors contributing to the decline in profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.05% | 1.28% | 11.55% | 15.47% | 16.14% |
| Return on assets (ROA) | 0.88% | 4.40% | 11.80% | 13.65% | 15.42% |
| Return on total capital | 1.08% | 5.94% | 17.30% | 22.36% | 23.88% |
| Return on equity (ROE) | 1.60% | 7.90% | 20.83% | 25.78% | 27.16% |
Intel Corporation's profitability ratios show a declining trend over the past five years. The company's Operating Return on Assets (Operating ROA) decreased from 16.14% in 2019 to 0.05% in 2023, indicating a significant decline in the company's ability to generate operating profits relative to its total assets.
Similarly, Return on Assets (ROA) declined from 15.42% in 2019 to 0.88% in 2023, which suggests a decrease in Intel's overall profitability in relation to its total assets. This may be concerning for investors as it indicates a lower efficiency in generating profits from its asset base.
Return on Total Capital also showed a decreasing trend from 23.88% in 2019 to 1.08% in 2023, reflecting a reduced return on the company's total invested capital. This could imply lower efficiency and effectiveness in utilizing both debt and equity capital to generate returns for shareholders and other stakeholders.
Return on Equity (ROE) decreased from 27.16% in 2019 to 1.60% in 2023, indicating a declining profitability in relation to the shareholders' equity. This could be a point of concern for investors as it signifies a diminishing return for each dollar of equity invested in the company.
Overall, the declining trend in profitability ratios for Intel Corporation raises questions about the company's ability to generate profits efficiently and effectively from its assets and capital base. Investors may need to closely monitor the company's performance and strategies to assess its future profitability potential.