Intel Corporation (INTC)

Interest coverage

		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
Interest expense	US$ in thousands	1,500,000	878,000	496,000	597,000	629,000
Interest coverage		-7.79	1.88	16.66	37.35	40.87

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $-11,678,000K ÷ $1,500,000K
= -7.79

The interest coverage ratio is a key financial metric used to evaluate a company's ability to meet its interest payment obligations. For Intel Corporation, we can observe a declining trend in interest coverage over the years:

- As of December 31, 2020, Intel had an interest coverage ratio of 40.87, indicating a strong ability to cover its interest payments.
- By December 31, 2021, the interest coverage ratio decreased to 37.35, still reflecting a solid ability to meet interest obligations.
- However, a notable drop occurred by December 31, 2022, where the interest coverage ratio fell to 16.66, signaling a potential decrease in the company's ability to cover its interest expenses.
- The trend continued to worsen in the following years, with an interest coverage ratio of 1.88 as of December 31, 2023, and a negative coverage ratio of -7.79 by December 31, 2024, implying that Intel may be facing challenges in meeting its interest payments from its operating income.

This downward trend in Intel's interest coverage raises concerns about the company's financial health and its ability to service its debt obligations efficiently. Further analysis and monitoring of Intel's financial performance and debt management practices would be crucial to assess the potential risks associated with its declining interest coverage ratio.