Stock Analysis on Net

Intel Corp. (NASDAQ:INTC)

Financial Reporting Quality: Aggregate Accruals 

Microsoft Excel LibreOffice Calc

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Intel Corp., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Operating Assets
Total assets 168,406  153,091  136,524  127,963  123,249 
Less: Cash and cash equivalents 4,827  5,865  4,194  3,019  3,433 
Less: Short-term investments 2,103  2,292  1,082  2,788  1,814 
Less: Trading assets 21,483  15,738  7,847  5,843  8,755 
Operating assets 139,993  129,196  123,401  116,313  109,247 
Operating Liabilities
Total liabilities 73,015  72,053  58,865  52,981  53,364 
Less: Short-term debt 4,591  2,504  3,693  1,261  1,776 
Less: Long-term debt 33,510  33,897  25,308  25,098  25,037 
Operating liabilities 34,914  35,652  29,864  26,622  26,551 
 
Net operating assets1 105,079  93,544  93,537  89,691  82,696 
Balance-sheet-based aggregate accruals2 11,535  3,846  6,995  — 
Financial Ratio
Balance-sheet-based accruals ratio3 11.61% 0.01% 4.20% 8.12%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Advanced Micro Devices Inc. 8.05% 72.69% 28.39% 49.43%
Analog Devices Inc. 90.70% -2.85% 0.29% -2.75% 142.61%
Applied Materials Inc. 17.33% 3.75% 19.87% 9.56% 7.98%
Broadcom Inc. -8.72% 8.42% 27.77% 29.77% -9.33%
Lam Research Corp. 21.20% 12.45% -6.77% 10.60% 0.89%
Micron Technology Inc. 11.51% 7.56% 11.13% 20.96% 30.97%
NVIDIA Corp. 115.40% -16.93% 49.27% 28.14%
Qualcomm Inc. 22.56% 20.94% 48.90% -98.54% -47.48%
Texas Instruments Inc. 18.48% 1.00% -5.28% -1.17%
Balance-Sheet-Based Accruals Ratio, Sector
Semiconductors & Semiconductor Equipment 20.07% 4.72% 12.10% 7.37%
Balance-Sheet-Based Accruals Ratio, Industry
Information Technology 19.17% 2.17% 13.41% -3.21%

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).

1 2021 Calculation
Net operating assets = Operating assets – Operating liabilities
= 139,99334,914 = 105,079

2 2021 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2021 – Net operating assets2020
= 105,07993,544 = 11,535

3 2021 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 11,535 ÷ [(105,079 + 93,544) ÷ 2] = 11.61%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Intel Corp. deteriorated earnings quality from 2020 to 2021.

Cash-Flow-Statement-Based Accruals Ratio

Intel Corp., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Net income 19,868  20,899  21,048  21,053  9,601 
Less: Net cash provided by operating activities 29,991  35,384  33,145  29,432  22,110 
Less: Net cash used for investing activities (25,167) (20,796) (14,405) (11,239) (15,762)
Cash-flow-statement-based aggregate accruals 15,044  6,311  2,308  2,860  3,253 
Financial Ratio
Cash-flow-statement-based accruals ratio1 15.15% 6.75% 2.52% 3.32%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Advanced Micro Devices Inc. 8.10% 83.38% -0.19% 43.37%
Analog Devices Inc. -11.85% -3.72% -3.61% -3.78% 62.93%
Applied Materials Inc. 14.75% -0.54% -1.09% -13.49% 33.14%
Broadcom Inc. -12.34% 3.65% 18.25% 23.21% -13.51%
Lam Research Corp. 5.16% 9.16% 16.67% -78.67% 47.67%
Micron Technology Inc. 10.01% 5.45% 9.74% 17.59% 20.50%
NVIDIA Corp. 233.25% -225.09% 143.36% -83.66%
Qualcomm Inc. 15.61% 48.48% -30.37% -127.94% -102.91%
Texas Instruments Inc. 29.95% 4.03% 3.01% -15.48%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Semiconductors & Semiconductor Equipment 12.48% 3.86% 7.50% -2.38%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Information Technology 10.59% -6.24% -9.17% -17.50%

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).

1 2021 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 15,044 ÷ [(105,079 + 93,544) ÷ 2] = 15.15%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Intel Corp. deteriorated earnings quality from 2020 to 2021.