Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Intel Corp., ROIC calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | (1,469) | 3,672) | 19,493) | 22,960) | 21,590) | |
| Invested capital2 | 92,095) | 88,671) | 88,498) | 81,967) | 80,607) | |
| Performance Ratio | ||||||
| ROIC3 | -1.60% | 4.14% | 22.03% | 28.01% | 26.78% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Advanced Micro Devices Inc. | -0.35% | -0.24% | 56.77% | 30.47% | 12.00% | |
| Analog Devices Inc. | 7.11% | 5.76% | 2.37% | 6.95% | 8.23% | |
| Applied Materials Inc. | 36.75% | 46.34% | 41.96% | 29.68% | 28.97% | |
| Broadcom Inc. | 23.04% | 20.76% | 11.02% | 4.80% | 5.00% | |
| KLA Corp. | 40.63% | 42.51% | 31.64% | 19.88% | 20.98% | |
| Lam Research Corp. | 28.08% | 42.41% | 41.94% | 24.20% | 20.10% | |
| Micron Technology Inc. | -11.01% | 17.20% | 12.88% | 6.84% | 17.15% | |
| NVIDIA Corp. | 10.91% | 53.12% | 33.44% | 19.63% | 80.01% | |
| ON Semiconductor Corp. | 18.98% | 21.26% | 16.06% | 3.81% | 4.97% | |
| Qualcomm Inc. | 18.69% | 45.12% | 42.56% | 27.48% | 28.27% | |
| Texas Instruments Inc. | 28.83% | 49.74% | 48.28% | 43.48% | 43.15% | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 NOPAT. See details »
2 Invested capital. See details »
3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × -1,469 ÷ 92,095 = -1.60%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Intel Corp. ROIC deteriorated from 2021 to 2022 and from 2022 to 2023. |
Decomposition of ROIC
Intel Corp., decomposition of ROIC
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the decrease in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Intel Corp., OPM calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | (1,469) | 3,672) | 19,493) | 22,960) | 21,590) | |
| Add: Cash operating taxes2 | 1,005) | 4,893) | 2,675) | 2,488) | 2,493) | |
| Net operating profit before taxes (NOPBT) | (464) | 8,566) | 22,168) | 25,448) | 24,083) | |
| Net revenue | 54,228) | 63,054) | 79,024) | 77,867) | 71,965) | |
| Profitability Ratio | ||||||
| OPM3 | -0.86% | 13.58% | 28.05% | 32.68% | 33.46% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 2.02% | 5.31% | 22.70% | 13.87% | 6.93% | |
| Analog Devices Inc. | 32.00% | 27.59% | 20.52% | 26.98% | 29.60% | |
| Applied Materials Inc. | 29.22% | 30.32% | 30.54% | 25.67% | 23.94% | |
| Broadcom Inc. | 45.19% | 42.94% | 31.06% | 17.10% | 15.65% | |
| KLA Corp. | 39.78% | 41.73% | 36.39% | 26.09% | 32.80% | |
| Lam Research Corp. | 28.99% | 35.59% | 34.25% | 27.26% | 20.46% | |
| Micron Technology Inc. | -36.77% | 31.50% | 23.15% | 14.37% | 29.89% | |
| NVIDIA Corp. | 15.97% | 37.99% | 28.45% | 26.65% | 33.15% | |
| ON Semiconductor Corp. | 30.82% | 29.41% | 19.27% | 6.72% | 7.62% | |
| Qualcomm Inc. | 21.48% | 35.06% | 30.10% | 24.17% | 29.86% | |
| Texas Instruments Inc. | 44.51% | 51.22% | 49.60% | 43.13% | 40.81% | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
OPM = 100 × NOPBT ÷ Net revenue
= 100 × -464 ÷ 54,228 = -0.86%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Intel Corp. OPM deteriorated from 2021 to 2022 and from 2022 to 2023. |
Turnover of Capital (TO)
Intel Corp., TO calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 54,228) | 63,054) | 79,024) | 77,867) | 71,965) | |
| Invested capital1 | 92,095) | 88,671) | 88,498) | 81,967) | 80,607) | |
| Efficiency Ratio | ||||||
| TO2 | 0.59 | 0.71 | 0.89 | 0.95 | 0.89 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Advanced Micro Devices Inc. | 0.39 | 0.40 | 2.65 | 2.24 | 1.98 | |
| Analog Devices Inc. | 0.28 | 0.27 | 0.16 | 0.31 | 0.33 | |
| Applied Materials Inc. | 1.49 | 1.73 | 1.57 | 1.31 | 1.44 | |
| Broadcom Inc. | 0.57 | 0.53 | 0.42 | 0.36 | 0.38 | |
| KLA Corp. | 1.26 | 1.18 | 1.01 | 0.89 | 0.72 | |
| Lam Research Corp. | 1.15 | 1.38 | 1.40 | 1.02 | 1.15 | |
| Micron Technology Inc. | 0.29 | 0.58 | 0.60 | 0.51 | 0.60 | |
| NVIDIA Corp. | 1.26 | 1.49 | 1.28 | 0.77 | 2.45 | |
| ON Semiconductor Corp. | 0.76 | 0.89 | 0.89 | 0.76 | 0.80 | |
| Qualcomm Inc. | 1.14 | 1.50 | 1.66 | 1.33 | 1.13 | |
| Texas Instruments Inc. | 0.78 | 1.14 | 1.12 | 1.12 | 1.19 | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 Invested capital. See details »
2 2023 Calculation
TO = Net revenue ÷ Invested capital
= 54,228 ÷ 92,095 = 0.59
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Intel Corp. TO deteriorated from 2021 to 2022 and from 2022 to 2023. |
Effective Cash Tax Rate (CTR)
Intel Corp., CTR calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | (1,469) | 3,672) | 19,493) | 22,960) | 21,590) | |
| Add: Cash operating taxes2 | 1,005) | 4,893) | 2,675) | 2,488) | 2,493) | |
| Net operating profit before taxes (NOPBT) | (464) | 8,566) | 22,168) | 25,448) | 24,083) | |
| Tax Rate | ||||||
| CTR3 | — | 57.13% | 12.07% | 9.78% | 10.35% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 143.92% | 111.01% | 5.73% | 1.76% | 12.31% | |
| Analog Devices Inc. | 20.23% | 21.73% | 25.70% | 16.31% | 14.82% | |
| Applied Materials Inc. | 15.68% | 11.76% | 12.33% | 12.01% | 16.10% | |
| Broadcom Inc. | 10.78% | 9.59% | 16.44% | 22.63% | 15.10% | |
| KLA Corp. | 18.86% | 13.88% | 14.30% | 14.62% | 10.70% | |
| Lam Research Corp. | 15.67% | 13.55% | 12.57% | 13.09% | 14.26% | |
| Micron Technology Inc. | — | 6.38% | 6.96% | 6.13% | 4.94% | |
| NVIDIA Corp. | 45.94% | 6.28% | 8.10% | 4.59% | 1.47% | |
| ON Semiconductor Corp. | 18.48% | 18.66% | 6.53% | 25.63% | 19.02% | |
| Qualcomm Inc. | 23.51% | 14.27% | 14.84% | 14.19% | 16.37% | |
| Texas Instruments Inc. | 16.49% | 14.83% | 12.93% | 9.63% | 11.38% | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,005 ÷ -464 = —
4 Click competitor name to see calculations.