Stock Analysis on Net

Intel Corp. (NASDAQ:INTC)

Analysis of Debt

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Total Debt (Carrying Amount)

Intel Corp., balance sheet: debt

US$ in millions

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Short-term debt 4,591  2,504  3,693  1,261  1,776 
Long-term debt 33,510  33,897  25,308  25,098  25,037 
Total debt (carrying amount) 38,101  36,401  29,001  26,359  26,813 

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

Debt item Description The company
Total debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Intel Corp. total debt increased from 2019 to 2020 and from 2020 to 2021.

Total Debt (Fair Value)

Microsoft Excel
Dec 25, 2021
Selected Financial Data (US$ in millions)
Commercial paper and drafts payable — 
Issued debt 41,500 
Total debt (fair value) 41,500 
Financial Ratio
Debt, fair value to carrying amount ratio 1.09

Based on: 10-K (reporting date: 2021-12-25).


Weighted-average Interest Rate on Debt

Weighted-average effective interest rate on debt: 2.57%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
0.55% 800 
1.96% 750  15 
2.70% 1,000  27 
2.96% 398  12 
2.28% 1,500  34 
3.22% 400  13 
2.31% 1,250  29 
2.14% 600  13 
3.45% 1,500  52 
2.16% 2,250  49 
0.63% 1,000 
3.79% 1,000  38 
1.21% 1,000  12 
1.68% 1,000  17 
2.39% 2,000  48 
3.93% 1,500  59 
2.04% 1,250  26 
1.24% 750 
4.61% 750  35 
2.82% 750  21 
2.01% 802  16 
1.42% 567 
2.13% 772  16 
1.40% 1,250  18 
1.37% 1,000  14 
0.92% 640 
1.77% 1,967  35 
3.20% 2,000  64 
4.74% 2,250  107 
3.07% 1,250  38 
3.11% 1,000  31 
4.99% 1,000  50 
3.22% 750  24 
2.49% 423  11 
2.13% 138 
2.15% 438 
Total 37,695  967 
2.57%

Based on: 10-K (reporting date: 2021-12-25).

1 US$ in millions

2 Weighted-average interest rate = 100 × 967 ÷ 37,695 = 2.57%


Interest Costs Incurred

Intel Corp., interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Interest expense 597  629  489  468  646 
Interest capitalized 398  338  472  496  313 
Interest costs incurred 995  967  961  964  959 

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. Intel Corp. interest expense increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Intel Corp. interest capitalized decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Intel Corp. interest costs incurred increased from 2019 to 2020 and from 2020 to 2021.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Net income 19,868  20,899  21,048  21,053  9,601 
Add: Income tax expense 1,835  4,179  3,010  2,264  10,751 
Add: Interest expense 597  629  489  468  646 
Earnings before interest and tax (EBIT) 22,300  25,707  24,547  23,785  20,998 
 
Interest costs incurred 995  967  961  964  959 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 37.35 40.87 50.20 50.82 32.50
Adjusted interest coverage ratio (with capitalized interest)2 22.41 26.58 25.54 24.67 21.90

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

2021 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 22,300 ÷ 597 = 37.35

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 22,300 ÷ 995 = 22.41


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Intel Corp. adjusted interest coverage ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.