Intel Corporation (INTC)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 878,000 | 496,000 | 597,000 | 629,000 | 489,000 |
| Interest coverage | 1.88 | 16.66 | 37.35 | 40.87 | 50.20 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,654,000K ÷ $878,000K
= 1.88
Intel Corporation's interest coverage ratio has experienced a downward trend over the past five years. The ratio was 1.88 in 2023, significantly lower compared to 16.66 in 2022, 37.35 in 2021, 40.87 in 2020, and 50.20 in 2019. This declining trend indicates that Intel's ability to cover its interest expenses with its operating income has weakened over time. A lower interest coverage ratio may suggest a higher financial risk for the company, as it may struggle to meet its interest obligations from its earnings. It would be important for Intel to closely monitor its interest coverage ratio and take necessary steps to improve it in order to enhance its financial stability and creditworthiness.
Peer comparison
Dec 31, 2023