Intel Corp. (NASDAQ:INTC)

An examination of the presented financial information reveals notable trends in goodwill and intangible assets over the five-year period. Overall, a consistent decline in the aggregate value of these assets is observed, driven by reductions in both goodwill and identified intangible assets.

Goodwill

Goodwill experienced a modest increase from 2021 to 2022, rising from US$26,963 million to US$27,591 million. This was followed by a significant decrease in 2024, falling to US$24,693 million, and continued to decline to US$23,912 million in 2025. The period between 2022 and 2025 demonstrates a cumulative reduction of approximately US$3,679 million, or 13.3%, in goodwill.

Developed Technology

Developed technology exhibited a consistent downward trend throughout the period. Starting at US$11,102 million in 2021, it decreased to US$8,007 million in 2024 and further to US$3,853 million in 2025. This represents a substantial decrease of approximately US$7,249 million, or 65.3%, over the five years.

Customer Relationships and Brands

The value of customer relationships and brands also declined, though at a slower pace than developed technology. From US$2,110 million in 2021, the value decreased to US$1,907 million in 2024 and ultimately reached US$808 million in 2025. This represents a cumulative reduction of approximately US$1,302 million, or 61.7%, over the period.

Licensed Technology, Patents and Other

This category showed a more volatile pattern. It increased from US$2,893 million in 2021 to US$3,219 million in 2022, then decreased to US$3,093 million in 2023, before increasing again to US$3,519 million in 2024 and finally reaching US$3,857 million in 2025. While fluctuations occurred, the value in 2025 is higher than the initial value in 2021.

Identified Intangible Assets (Gross & Net)

Gross identified intangible assets decreased from US$16,105 million in 2021 to US$8,518 million in 2025. Accumulated amortization increased consistently from US$8,835 million in 2021 to US$11,010 million in 2023, before decreasing to US$5,746 million in 2025. Consequently, net identified intangible assets declined from US$7,270 million in 2021 to US$2,772 million in 2025, a reduction of approximately US$4,498 million, or 61.8%.

Aggregate Value

The combined value of goodwill and identified intangible assets decreased from US$34,233 million in 2021 to US$26,684 million in 2025. This represents a total decrease of US$7,549 million, or 22.0%, over the five-year period. The most significant declines occurred between 2023 and 2025.

The observed trends suggest a potential reassessment of the value of acquired assets and internally developed intangibles. The substantial reduction in developed technology and customer relationships warrants further investigation into the underlying factors contributing to these decreases, such as impairment charges or changes in valuation methodologies.

The financial information reveals a consistent reduction in total assets and stockholders’ equity when goodwill is adjusted for. Total assets decreased between 2021 and 2025 when adjusted for goodwill, while reported total assets increased over the same period. A similar pattern is observed in stockholders’ equity, with adjusted equity consistently lower than reported equity and exhibiting a more moderate growth rate. Net income attributable to Intel remained unchanged between reported and adjusted figures, indicating that the goodwill adjustments primarily impact the balance sheet and not the income statement.

Total Assets

Reported total assets increased from US$168,406 million in 2021 to US$211,429 million in 2025. However, adjusted total assets, reflecting the removal of goodwill, show a more gradual increase, rising from US$141,443 million in 2021 to US$187,517 million in 2025. This difference highlights the significant contribution of goodwill to the company’s reported asset base.

Stockholders’ Equity

Reported total stockholders’ equity increased from US$95,391 million in 2021 to US$114,281 million in 2025. The adjusted stockholders’ equity, however, demonstrates a smaller increase, moving from US$68,428 million in 2021 to US$90,369 million in 2025. This suggests that a substantial portion of the reported equity is attributable to goodwill.

Net Income

Reported net income attributable to Intel experienced volatility over the period, with a peak of US$19,868 million in 2021, declining to a loss of US$267 million in 2025. The adjusted net income mirrors this trend, remaining identical to the reported figures across all years. This indicates that the adjustments related to goodwill do not affect the reported earnings.

The consistent difference between reported and adjusted figures for assets and equity suggests that goodwill represents a considerable component of the company’s financial position. The absence of any adjustment to net income implies that the impairment or removal of goodwill is being accounted for through adjustments to equity rather than impacting current period profitability.

The financial performance, as indicated by a set of key ratios, exhibits notable shifts over the five-year period. Adjustments made to exclude the impact of goodwill and intangible assets reveal alterations in profitability, asset utilization, and financial leverage. Generally, the adjusted ratios demonstrate a more pronounced decline in performance metrics compared to the reported figures, particularly in later years.

Profitability

Reported net profit margin experienced a substantial decrease, moving from 25.14% in 2021 to -35.32% in 2024 before a slight recovery to -0.51% in 2025. The adjusted net profit margin followed a similar trajectory, though the magnitude of the decline was somewhat less severe, ending at -0.51% in 2025. This suggests that goodwill and intangible assets initially provided a buffer to reported profitability, but this effect diminished over time as losses mounted. Both reported and adjusted ROE and ROA show significant declines, with both turning negative in 2024 and remaining so in 2025. The adjusted ROE and ROA consistently exceed their reported counterparts, indicating that the exclusion of goodwill and intangibles reveals a comparatively lower underlying profitability.

Asset Utilization

Reported total asset turnover decreased steadily from 0.47 in 2021 to 0.25 in 2025, indicating a diminishing ability to generate sales from its asset base. The adjusted total asset turnover also declined, but at a slower rate, finishing at 0.28 in 2025. This implies that the presence of goodwill and intangible assets inflated the reported asset turnover ratio, and removing these items provides a more conservative, and lower, assessment of asset efficiency.

Financial Leverage

Reported financial leverage increased from 1.77 in 2021 to 1.98 in 2024, before decreasing slightly to 1.85 in 2025. Adjusted financial leverage consistently exceeded the reported leverage, increasing from 2.07 in 2021 to 2.30 in 2024 and then decreasing to 2.08 in 2025. The higher adjusted leverage suggests that the company’s debt levels appear more substantial when goodwill and intangible assets are excluded from the asset base, potentially indicating a higher risk profile.

In summary, the adjustments made by removing goodwill and intangible assets consistently resulted in lower profitability and asset utilization ratios, and higher financial leverage ratios. The divergence between reported and adjusted figures widened over the period, particularly in 2024 and 2025, suggesting an increasing reliance on these assets to maintain reported performance. The negative profitability metrics in the later years, even after adjustments, raise concerns about the underlying operational performance of the entity.

The reported and adjusted net profit margins exhibit similar trends over the observed period. Initially strong, profitability declines significantly, culminating in negative margins in the later years. The adjusted net profit margin closely mirrors the reported net profit margin, suggesting that adjustments made to net income do not substantially alter the overall profitability picture.

Reported Net Profit Margin

In 2021, the reported net profit margin stood at 25.14%. This decreased to 12.71% in 2022, and further to 3.11% in 2023, indicating a consistent downward trend. The margin then became negative in 2024, reaching -35.32%, and remained negative in 2025 at -0.51%. This represents a substantial deterioration in reported profitability.

Adjusted Net Profit Margin

The adjusted net profit margin followed a parallel trajectory to the reported margin. Starting at 25.14% in 2021, it decreased to 12.71% in 2022 and 3.11% in 2023. Similar to the reported margin, it turned negative in 2024, reaching -29.70%, and remained negative in 2025 at -0.51%. The consistency between the reported and adjusted figures suggests that the factors impacting profitability are consistently reflected in both calculations.

The magnitude of the negative margins in 2024 and 2025 is considerable, signaling significant challenges in maintaining profitability. The decline from positive to negative margins occurred within a two-year period, suggesting a rapid shift in the company’s financial performance. The near convergence of the reported and adjusted margins indicates that non-recurring items or specific adjustments are not the primary driver of the observed profitability decline.

The consistent downward trend in both reported and adjusted net profit margins warrants further investigation into the underlying causes, such as revenue declines, increased costs, or significant impairments. The negative margins in the most recent periods suggest a need for strategic adjustments to restore profitability.

An examination of the financial information reveals trends in both total asset values and associated turnover ratios over a five-year period. Reported total assets demonstrate a consistent increase annually, moving from US$168,406 million in 2021 to US$211,429 million in 2025. Adjusted total assets, which exclude certain items, also exhibit an upward trend, albeit at a slightly lower magnitude, increasing from US$141,443 million to US$187,517 million over the same timeframe.

Reported Total Asset Turnover

The reported total asset turnover ratio shows a consistent decline from 0.47 in 2021 to 0.25 in 2025. This indicates a decreasing efficiency in generating revenue relative to the company’s reported total assets. The rate of decline appears to be slowing, with smaller decreases observed in later years.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrors the trend of the reported ratio, decreasing from 0.56 in 2021 to 0.28 in 2025. This suggests that the decline in revenue generation relative to assets is not solely attributable to the items excluded in the adjusted asset calculation. Similar to the reported ratio, the rate of decrease moderates in the more recent years.

The parallel downward trends in both reported and adjusted total asset turnover ratios suggest a systemic shift in the relationship between asset utilization and revenue generation. The consistent increase in total assets, coupled with the declining turnover ratios, implies that the company is employing a growing asset base to generate a relatively stable, or potentially decreasing, level of revenue. Further investigation into the drivers of asset growth and revenue performance would be necessary to fully understand these trends.

The difference between the reported and adjusted ratios remains relatively consistent throughout the period, indicating that the excluded items do not significantly alter the overall trend in asset turnover efficiency. The adjusted ratio consistently presents a more favorable, though still declining, picture of asset utilization.

An examination of the financial information reveals trends in both reported and adjusted asset and equity figures, impacting calculated financial leverage ratios over the five-year period. Reported total assets demonstrate a consistent upward trajectory, increasing from US$168,406 million in 2021 to US$211,429 million in 2025. Reported total stockholders’ equity also generally increased, though with a dip in 2024, moving from US$95,391 million to US$114,281 million over the same timeframe.

However, when considering adjusted figures, the picture shifts. Adjusted total assets also show an increasing trend, but at a slower rate than reported assets. Adjusted total stockholders’ equity exhibits a similar pattern of growth, but also experiences a decrease in 2024. The difference between reported and adjusted values suggests the presence of significant goodwill and intangible assets that are excluded from the adjusted calculations.

Reported Financial Leverage

Reported financial leverage, calculated as total assets divided by total stockholders’ equity, initially increased from 1.77 in 2021 to 1.81 in 2023. A notable increase occurred in 2024, reaching 1.98, before decreasing slightly to 1.85 in 2025. This indicates a moderate increase in the proportion of assets financed by equity when using reported figures.

Adjusted Financial Leverage

Adjusted financial leverage, which excludes the impact of goodwill and intangible assets, consistently exceeds reported financial leverage. It rose steadily from 2.07 in 2021 to 2.10 in 2023, then increased more substantially to 2.30 in 2024, before declining to 2.08 in 2025. This suggests that the company’s financial risk is higher when these assets are not considered, implying a greater reliance on equity financing when goodwill and intangibles are excluded from the asset base.

The divergence between reported and adjusted financial leverage highlights the substantial impact of goodwill and intangible assets on the company’s capital structure. The increasing adjusted financial leverage suggests that the company’s core, tangible assets require a greater proportion of equity financing than indicated by the reported leverage ratio. The peak in adjusted leverage in 2024, followed by a slight decrease in 2025, warrants further investigation to understand the underlying drivers of these changes.

The period under review demonstrates significant fluctuations in reported and adjusted net income, alongside corresponding shifts in stockholders’ equity and resultant return on equity metrics. A notable divergence exists between reported and adjusted figures, particularly concerning net income and equity, impacting the calculated ROE values.

Net Income Trends

Reported net income experienced a substantial decline from US$19,868 million in 2021 to a loss of US$18,756 million in 2024, with a further loss of US$267 million in 2025. Adjusted net income mirrors this trend, decreasing from US$19,868 million in 2021 to a loss of US$15,772 million in 2024 and US$267 million in 2025. The magnitude of the loss in 2024 is less severe under the adjusted calculation, suggesting the presence of items impacting reported earnings.

Stockholders’ Equity Trends

Reported total stockholders’ equity generally increased from US$95,391 million in 2021 to US$105,590 million in 2023, before decreasing to US$99,270 million in 2024 and increasing again to US$114,281 million in 2025. Adjusted total stockholders’ equity follows a similar pattern, rising from US$68,428 million in 2021 to US$77,999 million in 2023, then decreasing to US$74,577 million in 2024, and increasing to US$90,369 million in 2025. The adjusted equity values are consistently lower than reported equity, indicating adjustments are being made that reduce the equity base.

Reported Return on Equity (ROE)

Reported ROE declined significantly from 20.83% in 2021 to -18.89% in 2024, and further to -0.23% in 2025. This decline directly correlates with the decreasing reported net income and fluctuations in reported equity. The negative ROE in 2024 and 2025 indicates a loss relative to the stockholders’ equity investment.

Adjusted Return on Equity (ROE)

Adjusted ROE also decreased, though the magnitude of the decline appears greater than the reported ROE. It fell from 29.03% in 2021 to 2.17% in 2023, then dropped to -21.15% in 2024 and -0.30% in 2025. The adjusted ROE consistently demonstrates a lower return compared to the reported ROE, attributable to the lower adjusted equity base and the impact of adjustments to net income. The negative adjusted ROE in 2024 and 2025 suggests that, even after adjustments, the company is not generating sufficient profit relative to the adjusted equity investment.

The substantial difference between reported and adjusted ROE highlights the importance of understanding the nature of the adjustments being made. The consistent reduction in both net income and equity, coupled with the resulting negative ROE values in the later years, warrants further investigation into the underlying factors driving these trends.

The period under review demonstrates significant fluctuations in reported and adjusted net income alongside consistent growth in total assets, both reported and adjusted. This has resulted in a volatile return on assets (ROA) profile. A comparison of reported and adjusted figures suggests that adjustments primarily relate to the treatment of certain assets, impacting the overall asset base used in ROA calculations.

Net Income Trends

Reported net income decreased substantially from US$19,868 million in 2021 to a loss of US$18,756 million in 2024, before marginally improving to a loss of US$267 million in 2025. Adjusted net income follows a similar pattern, though the magnitude of the loss in 2024 is slightly less severe at US$15,772 million. The consistency between reported and adjusted net income suggests that adjustments are not significantly impacting profitability.

Asset Trends

Reported total assets increased steadily from US$168,406 million in 2021 to US$211,429 million in 2025. Adjusted total assets also exhibit growth over the same period, rising from US$141,443 million to US$187,517 million. The difference between reported and adjusted total assets widens over time, indicating an increasing impact from the adjustments made to the asset base. This suggests a growing portion of assets are subject to adjustments.

Reported ROA Analysis

Reported ROA declined sharply from 11.80% in 2021 to -9.55% in 2024, reflecting the substantial decrease in net income against a backdrop of increasing assets. A slight improvement is observed in 2025, with ROA reaching -0.13%. The negative ROA in 2024 and 2025 indicates that the company generated insufficient income relative to its reported asset base during those years.

Adjusted ROA Analysis

Adjusted ROA mirrors the trend of reported ROA, decreasing from 14.05% in 2021 to -9.18% in 2024, and then slightly improving to -0.14% in 2025. The adjusted ROA consistently exceeds the reported ROA, suggesting that the asset adjustments positively influence profitability when measured on an adjusted basis. However, the negative adjusted ROA in 2024 and 2025 still indicates underperformance relative to the adjusted asset base.

In summary, the period is characterized by declining profitability and increasing assets. While adjustments to the asset base improve the ROA compared to reported figures, the overall trend remains negative in the latter years of the period. The widening gap between reported and adjusted assets warrants further investigation to understand the nature and impact of these adjustments.