Analysis of Debt
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- Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Total Debt (Carrying Amount)
Intel Corp., balance sheet: debt
US$ in millions
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Short-term debt | ||||||
| Long-term debt | ||||||
| Total debt (carrying amount) |
Based on: 10-K (reporting date: 2024-12-28), 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).
- Short-term Debt Trends
- The short-term debt exhibited notable fluctuations over the analyzed periods. It increased significantly from 2,504 million USD in 2020 to 4,591 million USD in 2021, followed by a marginal decrease to 4,367 million USD in 2022. In 2023, there was a marked decline to 2,288 million USD, which then rebounded to 3,729 million USD in 2024. Overall, the short-term debt demonstrates volatility with a peak in 2021 and a trough in 2023.
- Long-term Debt Trends
- The long-term debt showed a generally rising trend with some fluctuations. Starting at 33,897 million USD in 2020, it slightly decreased to 33,510 million USD in 2021. However, it increased considerably thereafter, reaching 37,684 million USD in 2022 and continuing upward to 46,978 million USD in 2023. In 2024, long-term debt slightly decreased to 46,282 million USD. This pattern suggests an overall strategy of increasing long-term borrowings over the years with minor adjustments.
- Total Debt (Carrying Amount) Trends
- Total debt, representing the sum of short-term and long-term debt, followed an upward trajectory throughout the period. It rose from 36,401 million USD in 2020 to 38,101 million USD in 2021, and further to 42,051 million USD in 2022. The increase continued in 2023, reaching 49,266 million USD, and experienced a minor increment to 50,011 million USD in 2024. The steady total debt growth is primarily driven by increases in long-term debt despite the fluctuations in short-term debt.
- Overall Insights
- The data indicate a strategic emphasis on long-term debt financing, with long-term liabilities accounting for the majority of total debt and showing a consistent increase over five years. Short-term debt, while significant, shows more variability and less predictable trends, possibly reflecting tactical adjustments to meet immediate financing needs or operational liquidity management. Total debt growth suggests an increased reliance on borrowed funds, likely to support expansion, capital investment, or other corporate initiatives, with careful management of debt structures to balance short and long-term obligations.
Total Debt (Fair Value)
| Dec 28, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Commercial paper and drafts payable | |
| Issued debt | |
| Total debt (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2024-12-28).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2024-12-28).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
Intel Corp., interest costs incurred
US$ in millions
| 12 months ended: | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense | |||||||||||
| Interest capitalized | |||||||||||
| Interest costs incurred |
Based on: 10-K (reporting date: 2024-12-28), 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).
The data on annual interest costs incurred reveals distinct trends across the five-year period under review.
- Interest Expense
- The interest expense initially decreases from 629 million US dollars in 2020 to 597 million in 2021 and further down to 496 million in 2022. However, from 2022 onwards, it exhibits a significant upward trend, rising sharply to 878 million in 2023 and continuing to 1,034 million in 2024. This reversal suggests an increasing financial cost related to borrowed funds or debt obligations after a period of decline.
- Interest Capitalized
- The interest capitalized shows a consistent and substantial upward trajectory throughout the analyzed period. Starting at 338 million in 2020, it rises to 398 million in 2021, then nearly doubles to 785 million in 2022. A notable acceleration is observed in 2023 and 2024, with the amounts surging to 1,500 million in both years. This pattern indicates an increasing allocation of interest costs to asset capitalization, reflecting possibly significant investment or development activities.
- Interest Costs Incurred
- The total interest costs incurred, which sums interest expense and interest capitalized, exhibit a steady and pronounced increase year over year. Beginning at 967 million in 2020, the figure slightly rises to 995 million in 2021 and then sharply increases to 1,281 million in 2022. The growth trend intensifies further, reaching 2,378 million in 2023 and 2,534 million in 2024. This upward movement highlights growing overall interest obligations, driven both by higher capitalized interest and escalating interest expenses in the later years.
In summary, the company's interest costs reveal a strategic shift where interest capitalization has grown significantly, possibly reflecting increased investment in capital projects. Concurrently, after a period of decline, actual interest expense burden has markedly increased, contributing to a substantial rise in total interest costs incurred over the five-year period.
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2024-12-28), 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).
2024 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =
- Interest Coverage Ratio (without capitalized interest)
- The ratio exhibits a declining trend over the five-year period. Starting from a strong value of 40.87 in 2020, it decreases to 37.35 in 2021, which still indicates a healthy coverage. However, a significant drop occurs in 2022 to 16.66, followed by a steep decline to 1.87 in 2023. By 2024, the ratio turns negative, reaching -9.84, indicating potential difficulties in covering interest expenses purely from operating earnings.
- Adjusted Interest Coverage Ratio (with capitalized interest)
- This measure also shows a consistent downward trajectory. It begins at 26.58 in 2020, diminishes to 22.41 in 2021, and falls more sharply to 6.45 in 2022. The ratio then narrows to 0.69 in 2023 before turning negative to -4.02 in 2024. The adjusted ratio consistently remains below the unadjusted version, reflecting the additional effect of capitalized interest costs on interest coverage capacity.
- Overall Insights
- The data reflects a significant deterioration in the company's ability to cover its interest obligations over the given timeframe. The transition from comfortable coverage ratios to negative values by 2024 suggests increased financial stress or reduced operating earnings relative to interest expenses. The disparity between the adjusted and unadjusted ratios highlights the impact of capitalized interest, which further strains interest coverage. This trend may warrant a closer examination of the company’s debt management strategy and operational profitability.