Intel Corporation (INTC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.24 | 0.23 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.21 | 0.21 | 0.19 | 0.19 | 0.20 | 0.21 | 0.21 | 0.22 | 0.22 | 0.25 | 0.24 | 0.25 |
| Debt-to-capital ratio | 0.32 | 0.32 | 0.30 | 0.31 | 0.31 | 0.31 | 0.31 | 0.33 | 0.27 | 0.27 | 0.24 | 0.24 | 0.26 | 0.28 | 0.27 | 0.29 | 0.29 | 0.33 | 0.31 | 0.32 |
| Debt-to-equity ratio | 0.47 | 0.47 | 0.42 | 0.45 | 0.44 | 0.46 | 0.46 | 0.50 | 0.37 | 0.37 | 0.32 | 0.32 | 0.35 | 0.40 | 0.37 | 0.42 | 0.42 | 0.48 | 0.44 | 0.48 |
| Financial leverage ratio | 1.98 | 1.94 | 1.79 | 1.82 | 1.81 | 1.85 | 1.84 | 1.89 | 1.80 | 1.75 | 1.68 | 1.71 | 1.77 | 1.86 | 1.81 | 1.89 | 1.89 | 1.95 | 1.86 | 1.93 |
The solvency ratios of Intel Corporation provide insights into the company's financial health and ability to meet its financial obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets that are financed by debt. Intel's debt-to-assets ratio has been relatively stable in recent periods, ranging between 0.19 to 0.26. A lower ratio indicates a higher proportion of assets financed by equity, which can be seen as a positive sign for solvency.
2. Debt-to-capital ratio: This ratio indicates the percentage of the company's capital structure that is financed by debt. Intel's debt-to-capital ratio has fluctuated between 0.24 to 0.33 over the periods analyzed. A lower ratio suggests a higher proportion of equity in the capital structure, which may be considered favorable for solvency.
3. Debt-to-equity ratio: The debt-to-equity ratio reflects the extent to which a company is leveraging its equity. Intel's debt-to-equity ratio has shown a decreasing trend from 0.32 to 0.47. A lower ratio indicates lower financial risk and higher solvency, as it implies less reliance on debt for financing.
4. Financial leverage ratio: This ratio shows the degree of financial leverage employed by the company. Intel's financial leverage ratio has shown some variability, ranging between 1.68 to 1.98. A lower ratio suggests lower financial risk and better solvency, as it indicates a lower level of debt in the capital structure compared to equity.
In summary, Intel Corporation's solvency ratios demonstrate a stable financial position with a decreasing trend in leverage ratios over the periods examined. The company has managed its debt levels effectively, maintaining a healthy balance between debt and equity financing to support its operations and meet financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -7.73 | -6.48 | 0.76 | 2.34 | 1.88 | -2.71 | -3.39 | -4.39 | 16.66 | 29.60 | 41.71 | 52.71 | 37.35 | 40.27 | 36.37 | 33.70 | 40.87 | 44.56 | 52.00 | 54.87 |
Analysis of Intel Corporation's Interest Coverage:
Intel Corporation's interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
From March 31, 2020, to June 30, 2022, Intel's interest coverage ratio generally remained above 30, signaling a strong ability to cover its interest payments. However, there was a noticeable decline in the ratio from September 30, 2022, to December 31, 2024, where the ratio plummeted into negative territory. This dramatic decrease suggests a potential strain on Intel's ability to fulfill its interest obligations.
The fluctuations in Intel's interest coverage ratio over the period indicate a mix of changes in the company's earnings and its interest expenses. The declining trend towards negative ratios from 2022 to 2024 raises concerns about Intel's financial health and its ability to manage its debt burden effectively.
Investors and creditors closely monitor the interest coverage ratio as an important indicator of a company's financial stability and solvency. Intel would need to address the declining trend in its interest coverage ratio to avoid potential financial distress or challenges in meeting its debt obligations.