Intel Corporation (INTC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -11,678,000 | 1,654,000 | 8,261,000 | 22,300,000 | 25,707,000 |
| Long-term debt | US$ in thousands | 46,282,000 | 46,978,000 | 37,684,000 | 33,510,000 | 33,897,000 |
| Total stockholders’ equity | US$ in thousands | 99,270,000 | 105,590,000 | 101,423,000 | 95,391,000 | 81,073,000 |
| Return on total capital | -8.02% | 1.08% | 5.94% | 17.30% | 22.36% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-11,678,000K ÷ ($46,282,000K + $99,270,000K)
= -8.02%
Intel Corporation's return on total capital has shown a decreasing trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at a healthy 22.36% in 2020, the return on total capital has declined steadily to 17.30% in 2021, 5.94% in 2022, 1.08% in 2023, and finally turned negative to -8.02% in 2024.
This declining trend in return on total capital indicates that Intel's ability to generate profits from its total invested capital has weakened over the years, potentially signaling operational inefficiencies or challenges in deploying capital effectively for profitable returns. Investors and stakeholders may need to closely monitor Intel's capital allocation strategies and operational performance to address the declining return on total capital and ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2024