Intel Corporation (INTC)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-18,756,000	1,689,000	8,014,000	19,868,000	20,899,000
Total stockholders’ equity	US$ in thousands	99,270,000	105,590,000	101,423,000	95,391,000	81,073,000
ROE		-18.89%	1.60%	7.90%	20.83%	25.78%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-18,756,000K ÷ $99,270,000K
= -18.89%

The return on equity (ROE) of Intel Corporation has shown significant fluctuations over the past five years. In December 2020, the ROE stood at a robust 25.78%, indicating that for every dollar of shareholders' equity invested, the company generated a profit of 25.78 cents. However, by December 2021, the ROE declined to 20.83%, suggesting a slight decrease in the company's profitability in relation to its equity.

Subsequently, in December 2022, the ROE saw a more substantial decrease to 7.90%, signaling a significant decline in the company's ability to generate profits from its equity base. This trend continued in December 2023, with the ROE plummeting to 1.60%, indicating a further weakening of Intel's profitability relative to its shareholders' equity.

By December 2024, the ROE turned negative, standing at -18.89%, which is a concerning indicator as it implies that Intel Corporation incurred a loss in relation to its equity investment. This negative ROE may raise questions about the company's operational efficiency and financial management.

Overall, the declining trend in Intel Corporation's ROE over the five-year period highlights a potential erosion of shareholder value and suggests the need for strategic measures to improve profitability and effectively utilize the company's equity resources.