Intel Corporation (INTC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 191,572,000 | 182,103,000 | 168,406,000 | 153,091,000 | 136,524,000 |
| Total stockholders’ equity | US$ in thousands | 105,590,000 | 101,423,000 | 95,391,000 | 81,073,000 | 77,504,000 |
| Financial leverage ratio | 1.81 | 1.80 | 1.77 | 1.89 | 1.76 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $191,572,000K ÷ $105,590,000K
= 1.81
The financial leverage ratio of Intel Corporation has shown some fluctuations over the past five years. The ratio increased from 1.76 in 2019 to 1.89 in 2020, indicating higher financial leverage in 2020. However, there was a decrease in the ratio to 1.77 in 2021, followed by relatively stable levels in 2022 and 2023 at 1.80 and 1.81, respectively.
A financial leverage ratio above 1 indicates that a company is relying more on debt financing rather than equity financing. An increasing ratio suggests a higher level of debt relative to equity in the company's capital structure, which can magnify returns to equity shareholders but also introduce higher financial risk due to the obligations associated with debt.
Intel Corporation's fluctuating financial leverage ratio over the past five years may indicate varying strategies in capital structure management, possibly influenced by factors such as investments, acquisitions, or debt repayment. It is essential for investors and stakeholders to closely monitor changes in the financial leverage ratio to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2023