Intel Corp. (NASDAQ:INTC)

The financial data reveals several notable trends in the intangible asset categories over the evaluated periods. Goodwill remains the most substantial intangible asset, initially showing a slight decline from 26,971 million USD in 2020 to 24,693 million USD in 2024, with a peak near 27,591 million USD in 2022 and 2023 before decreasing significantly in the last year.

Developed technology exhibits a decreasing trend from 10,188 million USD in 2020 to 8,007 million USD in 2024, with some fluctuations in between. This indicates a steady amortization or impairment of developed technology assets over the years, particularly a sharp drop in 2024.

Customer relationships and brands remain relatively stable, with a modest decline from 2,110 million USD in 2020 and 2021 to 1,907 million USD in 2024. The consistency implies these assets maintain value despite minor annual reductions.

Licensed technology and patents have generally increased over the period. Starting at 2,836 million USD in 2020, this category rises to 3,387 million USD in 2024, showing growth and potential strengthening of the technical patent portfolio or additional acquisitions in this area.

Internal-use software was not reported until 2024, showing a small value of 128 million USD, which could suggest recent capitalization of software development expenses or changes in accounting policy regarding software costs.

Gross assets subject to amortization show an initial increase from 15,134 million USD in 2020 to 16,169 million USD in 2022, followed by a decrease to 13,429 million USD in 2024. Meanwhile, accumulated amortization steadily increases each year until 2023, indicating ongoing amortization expenses, but then decreases in 2024. The latter decrease may be due to asset disposals, reclassifications, or adjustments in amortization estimates.

The net identified intangible assets subject to amortization consistently decline from 7,771 million USD in 2020 to 3,687 million USD in 2024, highlighting an overall consumption of these assets or write-downs over time.

In-process research and development is reported only in 2020 at 954 million USD and absent in subsequent years, possibly reflecting changes in classification or capitalization policies.

Other non-amortizing intangibles and identified intangible assets not subject to amortization have minimal recorded values with minor fluctuations, reflecting a nominal impact on total intangibles.

Total identified intangible assets decline significantly from 9,026 million USD in 2020 to 3,691 million USD in 2024, mirroring the trends observed in the amortizable assets category.

Overall, the sum of goodwill and identified intangible assets decreases from 35,997 million USD in 2020 to 28,384 million USD in 2024, indicating a contracting intangible asset base. This decline is due to reductions in both goodwill and amortizable intangible assets, despite the incremental rise in licensed technology and patents. The data suggests ongoing amortization, asset retirements, or impairments impacting the value of intangibles, with relatively stable but modestly declining customer relationship values and an emerging recognition of internal-use software.

Total Assets

The reported total assets exhibited a steady increase each year, rising from approximately $153.1 billion in late 2020 to about $196.5 billion by the end of 2024. Similarly, the adjusted total assets, which likely exclude goodwill or other adjustments, also demonstrated consistent growth over the same period, increasing from $126.1 billion to $171.8 billion. This trend indicates ongoing asset accumulation and suggests expansion or reinvestment activities.

Stockholders’ Equity

Reported total stockholders’ equity increased from roughly $81.0 billion in 2020 to a peak near $105.6 billion in 2023, before declining to $99.3 billion in 2024. The adjusted stockholders’ equity followed a similar pattern, growing steadily from $54.1 billion in 2020 to nearly $78.0 billion in 2023, then decreasing to $74.6 billion in 2024. The reduction in equity during the final year may reflect adverse financial events, impairments, or distributions exceeding earnings.

Net Income (Loss) Attributable to Intel

Reported net income showed a declining trend from a strong positive value of approximately $20.9 billion in 2020 to a small profit of $1.7 billion in 2023. Thereafter, it turned negative, reaching a loss of around $18.8 billion in 2024. The adjusted net income mirrored this trajectory closely, ending with a somewhat smaller loss of $15.8 billion in 2024. This significant deterioration in earnings indicates operational challenges or large one-time expenses impacting profitability, particularly in the most recent year.

Overall Observations

The data reveals a company that has been increasing its asset base and equity over the observed period until a reversal in equity and net income in the final year. The consistent gap between reported and adjusted figures for assets and equity suggests a notable amount of goodwill or intangible assets being adjusted out. The sharp decline in net income in 2024 points to critical issues needing attention, which have materially impacted shareholder value and financial performance, despite prior years of growth and profitability.

The financial data presents several notable trends over the five-year period. A consistent decline is evident across key profitability and efficiency metrics, indicating a challenging operating environment and deteriorating financial performance.

Net Profit Margin

The reported net profit margin demonstrated a steady decrease from 26.84% in 2020 to a negative 35.32% in 2024. The adjusted margin, which accounts for goodwill, follows a similar trajectory but is slightly less negative in 2024 at -29.7%. This sharp fall in profitability suggests significant losses in the most recent year, reflecting either increased costs, reduced revenue, or both.

Total Asset Turnover

Reported total asset turnover shows a consistent decline from 0.51 in 2020 to 0.27 in 2024, indicating decreased efficiency in generating revenue from assets. The adjusted asset turnover ratios are higher but also declining, from 0.62 to 0.31, reinforcing a trend of diminishing operational efficiency irrespective of goodwill adjustments.

Financial Leverage

Financial leverage ratios have fluctuated but show an increasing trend when adjusted for goodwill, rising from 2.33 in 2020 to 2.3 in 2024 after dipping to 2.07-2.10 in the intermediate years. Reported leverage is generally lower but also increased from 1.89 to 1.98 over the period. This suggests a gradual increase in the use of debt financing or greater reliance on liabilities relative to equity.

Return on Equity (ROE)

Both reported and adjusted ROE indicate a substantial decline. Reported ROE dropped from 25.79% in 2020 to -18.89% in 2024, while adjusted ROE decreased from 38.65% to -21.15%. The adjusted figures, consistently higher than reported, still confirm a sharp loss of shareholder value in the latest periods.

Return on Assets (ROA)

The reported ROA followed a decreasing path from 13.65% in 2020 to -9.55% in 2024. Adjusted ROA exhibits a similar pattern, declining from 16.57% to -9.18%. This decline highlights reduced profitability relative to the asset base and corroborates the negative trends observed in other profitability measures.

Overall, the data indicates worsening profitability and operational efficiency over the five years, with the most pronounced deterioration occurring in the final year. The increasing leverage, especially on an adjusted basis, combined with plunging returns and margins, signals elevated financial risk. The goodwill adjustments moderate some ratios but do not significantly alter the overall negative trend.

The financial data reveals a pronounced downward trend in both reported and adjusted net income attributable to Intel over the five-year period. Initially, the company experienced strong profitability in 2020 and 2021, with reported net income values of $20,899 million and $19,868 million respectively. However, these figures declined sharply starting in 2022, dropping to $8,014 million, then further to $1,689 million in 2023, and finally entering negative territory at -$18,756 million in 2024. The adjusted net income follows a similar trajectory, ending at a less severe but still significant loss of -$15,772 million in 2024.

Correspondingly, the reported net profit margin shows a consistent decline during the same period. The margin decreased from a robust 26.84% in 2020 to 25.14% in 2021 and then plummeted to 12.71% in 2022. This margin continued to erode to just 3.11% in 2023, before turning sharply negative to -35.32% in 2024. The adjusted net profit margin mirrors this pattern but with slightly less deterioration in the final year, closing at -29.7% in 2024.

Net Income Trends

Reported and adjusted net income values indicate a substantial decrease in profitability over the period. The sharp decline beginning in 2022 culminates in a significant net loss by 2024, highlighting considerable challenges impacting earnings.

Profit Margin Patterns

The margins reflect weakening operational performance and escalating costs or reduced revenue, deteriorating from strong positive margins above 25% to deeply negative levels by the end of the period.

Comparative Analysis

The close alignment between reported and adjusted figures suggests that goodwill adjustments had a limited impact on net income and profit margin trends. Both sets of data confirm a clear downward trajectory, indicating fundamental operational difficulties rather than one-off accounting adjustments.

Overall Insight

The data evidences a transition from robust profitability to significant losses, underscoring the need for a strategic review to address declining financial health and restore sustainable profitability.

Total Assets

There is a consistent upward trend in both reported and adjusted total assets over the five-year period. Reported total assets increased from 153,091 million US dollars in 2020 to 196,485 million US dollars in 2024, reflecting steady growth. Similarly, adjusted total assets, which exclude goodwill, rose from 126,120 million US dollars to 171,792 million US dollars, indicating expansion in the company's asset base even after accounting for goodwill adjustments.

Total Asset Turnover

The reported total asset turnover ratio shows a clear declining trend, falling from 0.51 in 2020 to 0.27 in 2024. This suggests that the efficiency with which the company uses its reported total assets to generate revenue has decreased over the period. The adjusted total asset turnover ratio also declines from 0.62 to 0.31, showing a similar pattern of reduced asset efficiency when considering assets without goodwill. The adjusted turnover remains higher than the reported turnover throughout, indicating that goodwill adjustment results in asset measurements that correlate with relatively higher turnover rates.

Overall Insights

The company is expanding its asset base steadily, but this growth has not translated into proportional increases in asset utilization efficiency. The asset turnover ratios’ declining trend may indicate challenges in maintaining revenue growth relative to asset increases or changes in business strategy, capital intensity, or market conditions. The consistently higher adjusted turnover ratios suggest that goodwill has a dilutive effect on turnover calculations, emphasizing the importance of analyzing both reported and adjusted figures for comprehensive assessment.

The financial data reveals a consistent upward trajectory in both reported and goodwill-adjusted total assets over the five-year period, indicating growth in the company’s asset base. The reported total assets increased from approximately $153 billion in 2020 to about $196 billion in 2024. Similarly, adjusted total assets grew steadily from around $126 billion in 2020 to nearly $172 billion in 2024. The adjusted asset figures are consistently lower than the reported figures, reflecting the exclusion of goodwill components from the total asset values.

Stockholders' equity, both reported and adjusted, also demonstrates an increasing trend throughout the period, though with more volatility observed in the final year. Reported stockholders’ equity rose from about $81 billion in 2020 to peak at roughly $106 billion in 2023 before declining to approximately $99 billion in 2024. Adjusted stockholders’ equity exhibits a similar pattern, growing from approximately $54 billion in 2020 to almost $78 billion in 2023, then decreasing to nearly $75 billion in 2024. The adjusted equity figures remain consistently lower, highlighting the impact of goodwill adjustments on equity valuations.

Financial leverage ratios show a distinct pattern when comparing reported versus adjusted data. The reported financial leverage ratio declined slightly from 1.89 in 2020 to 1.77 in 2021 but rose again to 1.98 by 2024, showing a moderate increase in leverage over the latter years. The adjusted financial leverage ratio is higher at each point in time compared to the reported ratio, which is expected due to the lower adjusted equity base. This ratio fell from 2.33 in 2020 to 2.07 in 2021 and then increased gradually to 2.3 by 2024. The increasing trend in adjusted leverage suggests a higher reliance on debt or liabilities relative to equity after removing goodwill from the balance sheet, indicating a potentially elevated risk profile when considering tangible equity.

Overall, the data reveals ongoing asset growth, strengthening equity positions with some recent decline, and a rising financial leverage ratio, particularly on a goodwill-adjusted basis. This combination suggests a company expanding its asset base while slightly increasing its financial risk, especially when intangible assets are excluded from the equity base.

Total Assets

Steady growth in both reported and adjusted values over the period, with adjusted assets consistently lower due to exclusion of goodwill.

Stockholders’ Equity

Increasing trend with a peak in 2023 followed by a modest decline in 2024; adjusted equity lower than reported, reflecting goodwill adjustments.

Financial Leverage

Reported leverage slightly variable but increasing overall; adjusted leverage higher and rising, signaling increased leverage when goodwill is excluded.

Over the analyzed periods, the reported net income attributable to the company exhibits a clear downward trajectory, decreasing from $20,899 million in 2020 to a negative $18,756 million by the end of 2024. This decline is particularly steep between 2022 and 2024. The adjusted net income, which accounts for goodwill adjustments, follows a similar pattern, though the negative figure in 2024 is less severe than the reported value, at -$15,772 million.

Total stockholders’ equity, when reported without adjustments, shows a consistent upward trend from approximately $81 billion in 2020 to over $105 billion in 2023, before a slight decrease to about $99 billion in 2024. In contrast, the adjusted equity figures, which are lower due to goodwill adjustments, also increase steadily from about $54 billion in 2020 to nearly $78 billion in 2023, followed by a modest decline to approximately $74.6 billion in 2024.

Return on equity (ROE), reported as a percentage, mirrors the net income trend and indicates diminishing profitability over time. The reported ROE falls sharply from 25.79% in 2020 to -18.89% in 2024, indicating the company shifted from solid profitability to losses relative to equity. The adjusted ROE shows an even more pronounced decline, starting at 38.65% in 2020 and plunging to -21.15% in 2024, reflecting the significant impact of goodwill adjustments on return metrics.

Key observations:

The negative net income and ROE in the most recent years underline operational challenges or impairments affecting profitability.

The divergence between reported and adjusted results suggests the presence of significant goodwill impairments or other accounting adjustments impacting earnings and equity.

The steady increase in both reported and adjusted stockholders' equity until 2023 indicates growth in net assets, but the subsequent decline in 2024 aligns with the downturn in profitability.

The sharper decline in adjusted profitability measures implies that after excluding intangible or non-operational factors, the underlying performance is weaker than indicated by reported figures alone.

Net Income Trends

The reported net income attributable to the company demonstrates a significant downward trend over the five-year period. Starting at $20,899 million in 2020, it slightly decreased to $19,868 million in 2021, followed by a sharp decline to $8,014 million in 2022, further dropping to $1,689 million in 2023, and turning into a loss of $18,756 million in 2024. Adjusted net income follows a similar pattern, with values closely aligned to the reported figures, but the loss in 2024 is somewhat less severe at -$15,772 million, indicating the exclusion of certain items affecting reported results.

Total Assets Development

Reported total assets have shown a consistent increase annually, rising from $153,091 million in 2020 to $196,485 million in 2024. Adjusted total assets also exhibit steady growth but at lower absolute values, beginning at $126,120 million and reaching $171,792 million in 2024. The difference between reported and adjusted total assets suggests a notable amount of goodwill or other intangible assets being adjusted out, though the upward trend indicates steady asset accumulation or acquisition activities.

Return on Assets (ROA) Behavior

Reported ROA reveals a marked decline over the period, starting with a high return of 13.65% in 2020, decreasing to 11.8% in 2021, then dropping significantly to 4.4% in 2022 and further to 0.88% in 2023 before becoming negative (-9.55%) in 2024. Adjusted ROA follows a similar trajectory, albeit slightly higher in percentage terms in the earlier years, peaking at 16.57% in 2020 and decreasing to just above zero (1.03%) in 2023, before also going negative (-9.18%) in 2024. This indicates deteriorating efficiency in generating profit from assets over time, culminating in losses relative to the asset base in the latest year.

Insight Summary

Overall, the data indicate a substantial decline in profitability and asset efficiency from 2020 through 2024. While asset growth is consistent, the benefits of this growth have not translated into sustainable profits. The convergence of reported and adjusted figures on net income and ROA suggests that impairments or other adjustments, such as goodwill write-downs, have impacted reported results but not sufficiently to offset the downward trend in core profitability. The shift into negative net income and ROA in the final year signals significant operational or financial challenges requiring strategic attention.