Intel Corporation (INTC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.25 | 0.21 | 0.20 | 0.22 |
| Debt-to-capital ratio | 0.32 | 0.31 | 0.27 | 0.26 | 0.29 |
| Debt-to-equity ratio | 0.47 | 0.44 | 0.37 | 0.35 | 0.42 |
| Financial leverage ratio | 1.98 | 1.81 | 1.80 | 1.77 | 1.89 |
Intel Corporation's solvency ratios indicate its ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
1. Debt-to-assets ratio: Intel's debt-to-assets ratio has been relatively stable over the years, ranging between 0.20 to 0.25. This ratio shows that, on average, between 20% to 25% of Intel's assets are financed by debt.
2. Debt-to-capital ratio: Intel's debt-to-capital ratio has shown a slight increase over the years, from 0.26 to 0.32. This ratio indicates that debt contributes to around 26% to 32% of Intel's capital structure.
3. Debt-to-equity ratio: Intel's debt-to-equity ratio has seen some fluctuations, ranging from 0.35 to 0.47. This ratio highlights the proportion of debt and equity in Intel's capital structure, with debt representing between 35% to 47% of the total equity.
4. Financial leverage ratio: Intel's financial leverage ratio has also shown a slight increase over the years, from 1.77 to 1.98. This ratio signifies the extent to which Intel utilizes debt in financing its assets, with a ratio of 1.98 indicating that Intel's debt is 1.98 times its equity.
Overall, Intel Corporation's solvency ratios suggest that the company has maintained a relatively stable debt position with a moderate level of financial leverage, which indicates a balanced approach to financing its operations and growth.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -7.79 | 1.88 | 16.66 | 37.35 | 40.87 |
The interest coverage ratio indicates a company's ability to meet its interest obligations with its earnings. Looking at the data provided for Intel Corporation, we observe fluctuations in the interest coverage ratio over the years.
As of December 31, 2020, Intel Corporation had a strong interest coverage ratio of 40.87, indicating that the company's earnings were 40.87 times greater than its interest expenses. This suggests a robust ability to cover interest payments.
Moving to December 31, 2021, we see a slight decrease in the interest coverage ratio to 37.35, still indicating a healthy ability to meet interest obligations based on earnings.
However, there was a significant decline in the interest coverage ratio to 16.66 by December 31, 2022. This may suggest a potential strain on Intel Corporation's ability to cover interest expenses with its earnings.
By December 31, 2023, the interest coverage ratio dropped further to 1.88, indicating a concerning situation where the company's earnings may not be sufficient to cover its interest payments adequately.
The data for December 31, 2024, shows a negative interest coverage ratio of -7.79, signaling that Intel Corporation's earnings were insufficient to cover its interest expenses. This could raise concerns about the company's financial health and ability to service its debt.
In summary, the trend in Intel Corporation's interest coverage ratio demonstrates a gradual decline and a significant deterioration in recent years, highlighting a potential strain on the company's ability to meet its interest obligations with its earnings. Stakeholders should closely monitor this metric to assess Intel's financial risk and debt repayment capacity.