Intel Corporation (INTC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,654,000 | 8,261,000 | 22,300,000 | 25,707,000 | 24,547,000 |
| Long-term debt | US$ in thousands | 46,978,000 | 37,684,000 | 33,510,000 | 33,897,000 | 25,308,000 |
| Total stockholders’ equity | US$ in thousands | 105,590,000 | 101,423,000 | 95,391,000 | 81,073,000 | 77,504,000 |
| Return on total capital | 1.08% | 5.94% | 17.30% | 22.36% | 23.88% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,654,000K ÷ ($46,978,000K + $105,590,000K)
= 1.08%
Intel Corporation's return on total capital has seen a declining trend over the past five years. The return on total capital decreased from 23.88% in 2019 to 1.08% in 2023. This indicates a significant decrease in the efficiency of the company in generating profits from its total capital employed. The declining trend suggests potential issues with the company's operations and capital utilization efficiency, which may require further analysis to determine the root causes. Investors and stakeholders should closely monitor this trend to understand the company's performance and profitability in relation to its total capital.
Peer comparison
Dec 31, 2023