Intel Corporation (INTC)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -10,733,000 | 776,000 | 7,765,000 | 21,703,000 | 25,078,000 |
| Revenue | US$ in thousands | 53,565,000 | 53,879,000 | 61,811,000 | 78,168,000 | 76,984,000 |
| Pretax margin | -20.04% | 1.44% | 12.56% | 27.76% | 32.58% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-10,733,000K ÷ $53,565,000K
= -20.04%
Intel Corporation's pretax margin has shown a declining trend over the past five years. In December 2020, the pretax margin was at a healthy 32.58%, indicating that the company was effectively controlling its operating expenses relative to its revenue. However, there has been a noticeable decrease in the pretax margin in subsequent years. By December 2021, the pretax margin decreased to 27.76%, suggesting a potential increase in operating expenses or a decrease in revenue efficiency.
The trend continued downwards in December 2022, with the pretax margin dropping to 12.56%. This significant decline may indicate challenges in maintaining profitability, possibly due to increased competition, higher costs, or other operational issues. The situation worsened further in December 2023, as the pretax margin plummeted to 1.44%, raising concerns about Intel's ability to generate profits before accounting for taxes.
By December 2024, the pretax margin fell into negative territory at -20.04%, indicating that Intel Corporation was incurring losses at the operating level before tax considerations. This sharp decline may signal financial distress, inefficiencies, or strategic missteps that need to be addressed promptly to improve the company's financial performance. Investors and stakeholders should closely monitor Intel's efforts to reverse this downward trend in pretax margin and sustain long-term profitability.
Peer comparison
Dec 31, 2024