Intel Corp. (NASDAQ:INTC)

The short-term operating activity ratios exhibit varied trends over the observed period. Generally, a period of relative stability from early 2022 through late 2023 is followed by more pronounced fluctuations in the latter quarters. Several ratios demonstrate improvement in early 2024, followed by a mixed performance through the end of the observation period.

Inventory Management

Inventory turnover remained relatively stable between 2.74 and 3.28 for most of the period, with a slight upward trend observed from late 2023 through mid-2024. The average inventory processing period correspondingly decreased from 133 days to 111 days during the same timeframe, indicating improved efficiency in managing inventory. However, the period lengthened again to 123 days by the end of the observation period.

Receivables Management

Receivables turnover showed significant volatility, peaking at 18.59 in September 2023 before declining to 13.77 by December 2024. This corresponds to a decrease in the average receivable collection period from 20 days in July 2023 to 27 days by December 2025, suggesting a lengthening of the time required to collect receivables. The initial increase in turnover, followed by a decline, warrants further investigation.

Payables Management

Payables turnover generally decreased over the period, from 4.92 to 3.49, indicating a slower rate of paying suppliers. The average payables payment period increased from 74 days to 105 days, suggesting the company is taking longer to settle its obligations. This trend could be a strategic decision to manage cash flow, but prolonged increases may strain supplier relationships.

Overall Efficiency

Working capital turnover demonstrated a notable increase from 2.34 in April 2022 to 6.31 in March 2024, indicating improved efficiency in utilizing working capital. However, this was followed by a substantial decline to 1.65 by December 2025, suggesting a significant decrease in the efficiency of working capital management. The operating cycle initially decreased, reaching a low of 145 days, but then increased to 150 days, mirroring the trends in receivables and payables. The cash conversion cycle followed a similar pattern, decreasing to 23 days before increasing to 45 days.

In summary, the company experienced a period of improving efficiency in managing its short-term assets and liabilities, particularly evident in the first half of 2024. However, the latter part of the observation period reveals a reversal of these trends, with declining receivables turnover, increasing payables payment periods, and a significant decrease in working capital turnover. These shifts suggest potential challenges in maintaining efficient operations and managing cash flow.

The inventory turnover ratio exhibits a generally stable pattern over the observed period, with some fluctuations. Initially, the ratio demonstrates a slight increase followed by a decline, then a period of relative stability, and finally a notable increase before settling back to near previous levels.

Initial Trend (Apr 2, 2022 – Dec 31, 2022)

The inventory turnover ratio begins at 2.97 and experiences a modest increase to 3.02. This is followed by a slight decrease to 2.90 and a more pronounced decline to 2.74 by the end of 2022. This initial period suggests a slight weakening in the speed at which inventory is being sold and replenished.

Stabilization and Subsequent Increase (Apr 1, 2023 – Jun 29, 2024)

From early 2023 through mid-2024, the ratio remains relatively stable, fluctuating between 2.68 and 2.94. A noticeable increase is then observed, rising to 3.28 in the quarter ending March 30, 2024. This suggests a period of improved inventory management or increased demand during that timeframe.

Recent Performance (Sep 28, 2024 – Dec 27, 2025)

Following the peak of 3.28, the inventory turnover ratio decreases to 3.00, 2.97, and then stabilizes around 2.93-2.97 for the final four quarters. This indicates a return to levels consistent with the earlier portion of the analyzed period, suggesting the factors driving the earlier increase may have subsided.

Overall Observations

The inventory turnover ratio generally remains within a narrow band, indicating consistent, though not exceptional, inventory management practices. The peak in early 2024 warrants further investigation to understand the underlying drivers, but the subsequent return to previous levels suggests it may have been a temporary phenomenon. The ratio does not demonstrate a strong upward or downward trend over the entire period.

The receivables turnover ratio exhibits considerable fluctuation over the observed period, spanning from April 2022 to December 2025. Initial values indicate a generally healthy rate of collection, which then experiences periods of both increase and decrease. A detailed examination reveals distinct trends and potential areas of interest regarding the efficiency of accounts receivable management.

Overall Trend

The ratio demonstrates a lack of consistent directional movement. While there are periods of sustained increase, these are interspersed with declines, suggesting external factors or internal policy changes may be influencing collection speeds. The ratio generally remains above 10, indicating reasonably efficient collection practices throughout the period, but with notable variability.

Initial Period (Apr 2, 2022 – Dec 31, 2022)

The ratio begins at 10.98 and initially decreases to 9.31 before experiencing a significant jump to 15.26 by the end of 2022. This initial decline could be attributed to seasonal sales patterns or a temporary slowdown in collections. The subsequent increase suggests a successful recovery in collection efforts or a change in credit terms.

Growth and Peak (Apr 1, 2023 – Jul 1, 2023)

The first half of 2023 shows a strong upward trend, with the ratio climbing from 14.66 to a peak of 18.04. This indicates a period of highly efficient receivables collection, potentially driven by improved credit control procedures or favorable payment terms. This trend continues into the next quarter, reaching 18.59.

Subsequent Fluctuations (Sep 30, 2023 – Dec 27, 2025)

Following the peak, the ratio experiences a decline to 15.94, followed by a period of relative stability between 16.62 and 17.60. A more pronounced decrease is observed in the latter half of 2024, falling to 13.77 by December 2024. This decline continues into early 2025, with a slight recovery to 16.69 in September 2025, before ending at 13.77 in December 2025. This suggests a potential weakening in collection efficiency towards the end of the observation period, warranting further investigation.

Notable Outlier

The ratio reaches its highest point at 18.59 in September 2023. This represents a significant acceleration in the rate at which receivables are being converted into cash and may be worth investigating to determine the contributing factors.

In conclusion, the receivables turnover ratio demonstrates a dynamic pattern over the analyzed timeframe. While generally indicating acceptable collection efficiency, the observed fluctuations suggest the need for ongoing monitoring and analysis to identify the underlying causes and ensure consistent performance.

The accounts payable turnover ratio exhibits a generally declining trend over the observed period, punctuated by some quarterly fluctuations. Initially, the ratio decreased from 4.92 in April 2022 to 3.77 in December 2022. This initial decline suggests a lengthening of the time it takes to pay suppliers. A slight recovery occurred in the first half of 2023, but the ratio continued to trend downward through the end of 2024, reaching a low of 2.85. The most recent quarters show some stabilization, with the ratio increasing to 3.49 in both March 2025 and December 2025.

Overall Trend

The overall trend is downward, indicating that the company is taking longer to pay its suppliers. This could be due to a variety of factors, including changes in negotiating power with suppliers, deliberate strategies to manage cash flow, or potential difficulties in meeting payment obligations. The recent stabilization suggests a possible shift in this trend, but further observation is needed to confirm.

Cost of Sales and Accounts Payable Relationship

While cost of sales generally remained relatively stable between April 2022 and December 2024, accounts payable increased significantly, particularly from September 2023 onwards. This increase in accounts payable, coupled with relatively consistent cost of sales, directly contributes to the observed decline in the payables turnover ratio. The increase in cost of sales in the first half of 2025 did not result in a corresponding increase in accounts payable, contributing to the slight ratio increase.

Quarterly Fluctuations

The ratio experienced some quarterly volatility. For example, a slight increase was observed between July 2022 and October 2022. However, these fluctuations were generally within the context of the broader downward trend. The largest single-quarter decrease occurred between December 2023 and March 2024, coinciding with a substantial increase in accounts payable.

Recent Performance

The final two reported quarters (March 2025 and June 2025) show a slight increase in the payables turnover ratio, suggesting a potential reversal of the previous downward trend. However, this is a limited observation and requires further monitoring to determine if it represents a sustained change in the company’s payment practices.

The working capital turnover ratio exhibits considerable fluctuation over the observed period. Initially, the ratio demonstrates an increasing trend from April 2022 to December 2022, followed by volatility and a subsequent decline towards the end of the period. A detailed examination reveals distinct phases in the ratio’s behavior.

Initial Increasing Trend (Apr 2, 2022 – Dec 31, 2022)

The working capital turnover ratio increased from 2.34 in April 2022 to 3.45 by December 2022. This suggests a more efficient utilization of working capital to generate revenue during this period. The company was able to support higher sales volumes with a relatively stable level of working capital investment.

Volatility and Subsequent Decline (Jan 1, 2023 – Dec 27, 2025)

Following the peak in December 2022, the ratio experienced fluctuations. It decreased to 2.70 in April 2023, then rose again to 3.56 in December 2023. A further increase was observed, peaking at 6.31 in June 2025. However, a significant decline followed, dropping to 1.65 by December 2025. This recent decline indicates a less efficient use of working capital, potentially due to increased investment in working capital without a corresponding increase in revenue, or a decrease in revenue with a stable working capital base.

Peak Performance (Jun 28, 2025)

The highest ratio value of 6.31 was recorded in June 2025. This represents the most efficient period for working capital utilization within the analyzed timeframe, indicating a strong correlation between working capital and revenue generation. The company generated $6.31 in revenue for every $1 of working capital employed.

Recent Performance (Sep 27, 2025 – Dec 27, 2025)

The sharp decrease in the ratio from 2.75 in September 2025 to 1.65 in December 2025 warrants further investigation. This could be attributed to several factors, including a build-up of inventory, slower collection of receivables, or a decrease in sales. The substantial drop suggests a potential inefficiency in managing short-term assets and liabilities.

Overall, the working capital turnover ratio demonstrates a cyclical pattern with periods of improvement followed by declines. The recent downward trend is particularly noteworthy and may indicate emerging challenges in working capital management. Continued monitoring of this ratio is recommended to identify the underlying causes of the recent decline and implement appropriate corrective measures.

The average inventory processing period exhibited fluctuations over the observed timeframe. Initially, the period decreased from 123 days to 121 days, then increased to 126 days before peaking at 136 days. Subsequent quarters saw a reduction, reaching 125 days, followed by a slight increase to 130 days. The period then generally decreased to 111 days before fluctuating between 122 and 123 days, and finally settling at 123 days.

Initial Phase (Apr 2, 2022 – Dec 31, 2022)

The average inventory processing period demonstrated initial stability, followed by a gradual lengthening. The period increased from 123 days to 133 days over this period, suggesting a potential slowdown in inventory turnover or an increase in inventory levels.

Stabilization and Reduction (Apr 1, 2023 – Dec 30, 2023)

A period of stabilization and subsequent reduction was observed. The average inventory processing period decreased from 136 days to 125 days, indicating improved inventory management or increased sales velocity. This suggests a positive trend in operational efficiency.

Recent Fluctuations (Mar 30, 2024 – Dec 27, 2025)

More recent quarters show increased volatility. The period decreased significantly to 111 days, then fluctuated between 122 and 125 days, before stabilizing at 123 days. This suggests potential shifts in inventory strategy or external factors impacting demand and supply chain dynamics. The recent stabilization indicates a possible return to a more consistent operational state.

Overall, the average inventory processing period has shown a cyclical pattern. While there was an initial lengthening of the period, subsequent quarters demonstrated a trend towards reduction, followed by recent fluctuations. The most recent values suggest a stabilization around 123 days, but continued monitoring is recommended to assess the sustainability of this trend.

Correlation with Inventory Turnover

The observed trends in the average inventory processing period are inversely related to the inventory turnover ratio. As the inventory turnover ratio decreased, the average inventory processing period generally increased, and vice versa. This confirms the expected relationship between these two metrics.

The average receivable collection period demonstrates considerable fluctuation over the observed timeframe. Initially, the period stood at 33 days before exhibiting a generally decreasing trend through the first half of 2023, reaching a low of 16 days. Subsequent quarters show increased variability, with the period rising to 27 days by the end of 2025.

Overall Trend

The period generally decreased from early 2022 to mid-2023, indicating improved efficiency in collecting receivables. However, this improvement was not sustained, and the period has fluctuated since, with a slight upward trend observed in the most recent quarters.

Short-Term Fluctuations

A notable decrease occurred between April 2022 (33 days) and July 2022 (30 days), followed by a rise to 39 days in October 2022. A significant drop then occurred, reaching 24 days by December 2022. This pattern of fluctuation continued, with periods of decrease and increase occurring throughout 2023 and 2024.

Recent Performance

The period experienced a substantial decline to 16 days in June 2025, representing the lowest value in the observed timeframe. However, this was followed by increases in subsequent quarters, reaching 27 days by December 2025. This recent increase warrants further investigation to determine the underlying causes.

Potential Considerations

The variability in the average receivable collection period may be influenced by factors such as changes in credit policies, customer payment behavior, or the composition of sales. The recent increase could indicate a loosening of credit terms, slower customer payments, or a shift in the customer base towards those with longer payment cycles.

Continued monitoring of this metric is recommended to identify any persistent trends and assess the effectiveness of credit and collection policies.

The operating cycle, along with its component parts, exhibits fluctuations over the observed period. Generally, the operating cycle demonstrates a tendency towards stabilization in recent quarters, following a period of more pronounced variability.

Average Inventory Processing Period

The average inventory processing period began at 123 days and generally increased, peaking at 136 days in April 2023. Subsequently, it decreased to 124 days by September 2024, before increasing slightly to 125 days in December 2024. The most recent periods show a decrease to 111 days in June 2025, followed by increases to 122 and 123 days in September and December 2025 respectively. This suggests potential improvements in inventory management efficiency in the latter half of the period, though recent quarters show a reversal of this trend.

Average Receivable Collection Period

The average receivable collection period showed considerable volatility. It started at 33 days, decreased to a low of 20 days in July 2023, and then fluctuated between 20 and 39 days. A notable decrease occurred in June 2025, falling to 16 days, before increasing to 22 days in September 2025 and 27 days in December 2025. This indicates varying levels of efficiency in collecting receivables, with a recent upward trend potentially signaling a lengthening of the collection process.

Operating Cycle

The operating cycle mirrored the combined effect of the inventory and receivable periods. It began at 156 days and experienced fluctuations, reaching a high of 165 days in October 2022. A downward trend was observed from April 2023 to June 2025, reaching a low of 127 days. However, the operating cycle increased to 144 days in September 2025 and 150 days in December 2025. This suggests a period of improved efficiency in converting investments in inventory and receivables into cash, followed by a recent lengthening of the cycle. The recent increases warrant further investigation.

Overall, the observed trends suggest a dynamic operating cycle influenced by changes in both inventory management and receivable collection practices. While improvements were evident in the period leading up to June 2025, the most recent quarters indicate a potential shift, requiring continued monitoring to assess the underlying causes and implications.

The average payables payment period exhibited fluctuations over the observed timeframe. Initially, the period stood at 74 days before generally increasing, then demonstrating some volatility in later periods.

Overall Trend

From April 2022 through December 2024, a general upward trend in the average payables payment period is discernible. The period increased from 74 days to a peak of 128 days. Subsequently, the period decreased, but remained elevated compared to the initial values.

Short-Term Fluctuations (2022-2023)

The period began at 74 days in April 2022, increasing to 79 days in July 2022, before decreasing to 70 days in October 2022. A significant increase was then observed, reaching 97 days in December 2022. This pattern of fluctuation continued into 2023, with the period at 85 days in April, 96 days in July, and remaining around 97 days through the end of the year.

Peak and Subsequent Adjustment (2023-2025)

The highest recorded average payables payment period was 128 days in December 2024. Following this peak, the period decreased to 110 days in March 2025, then to 104 days in June 2025. A slight increase to 109 days was noted in September 2025, followed by a further decrease to 105 days in December 2025.

Recent Period

The most recent measurement, as of December 2025, indicates an average payables payment period of 105 days. This represents a decrease from the peak observed in December 2024, but remains considerably higher than the period observed in the earlier part of the analyzed timeframe.

The observed increases in the average payables payment period may suggest a lengthening of the time taken to settle obligations to suppliers, potentially reflecting changes in supplier relationships, cash flow management, or negotiation strategies. The recent decrease from the peak suggests a possible return towards more typical payment terms, though continued monitoring is warranted.

The short-term operating activity, as measured by the cash conversion cycle and its components, exhibits notable fluctuations over the observed period. Generally, a decreasing trend in the cash conversion cycle is apparent, though with intermittent increases. The individual components – inventory processing, receivable collection, and payable payment – contribute to this overall pattern in varying degrees.

Average Inventory Processing Period

This metric generally remained within a relatively narrow range, fluctuating between 111 and 136 days. An initial increase from 123 days in April 2022 to 133 days in December 2022 is observed, followed by a slight decline to 125 days by December 2023. A more pronounced decrease to 111 days occurred in June 2025, representing the lowest point in the observed period, before increasing slightly to 123 days by December 2025. This suggests potential improvements in inventory management efficiency towards the latter part of the period.

Average Receivable Collection Period

The average time to collect receivables demonstrated greater volatility. It decreased from 33 days in April 2022 to a low of 16 days in June 2025. However, there were increases, notably to 39 days in October 2022 and 27 days in December 2025. The period generally trended downwards, indicating improved efficiency in collecting payments from customers, although the recent increase warrants monitoring.

Average Payables Payment Period

The average time taken to pay suppliers consistently increased over the period. Starting at 74 days in April 2022, it rose to 128 days in December 2023, and then settled at 105 days by December 2025. This suggests a lengthening of payment terms negotiated with suppliers, or a strategic decision to preserve cash flow. The increase is substantial and should be considered in the context of supplier relationships and potential discounts lost due to delayed payments.

Cash Conversion Cycle

The cash conversion cycle decreased significantly from 82 days in April 2022 to a low of 21 days in December 2023. While fluctuations occurred, the cycle generally remained below the initial level. A subsequent increase to 45 days by December 2025 is observed, potentially driven by the lengthening of the payables period and a slight increase in the inventory processing period. The overall downward trend suggests improved liquidity management, but the recent increase requires further investigation.

In summary, the observed trends indicate improving efficiency in inventory and receivable management, offset by a deliberate or necessitated extension of payment terms to suppliers. The overall impact is a generally decreasing cash conversion cycle, though recent developments suggest a potential reversal of this trend.