Intel Corp. (NASDAQ:INTC)

The analysis of the annual financial data reveals notable fluctuations and trends across multiple key financial metrics over the periods under review.

Profitability

Net income displays a declining trend from 2020 through 2024, with a significant drop from a positive US$20,899 million in 2020 to a negative US$19,233 million in 2024. This sharp decrease highlights deteriorating profitability, especially pronounced between 2022 and 2024.

Operating Expenses and Non-Cash Charges

Depreciation expenses remain relatively stable, fluctuating slightly but generally staying around the US$7,847 to US$11,128 million range. Share-based compensation steadily increases year-over-year, indicating growing costs related to employee incentives. Amortization of intangibles shows a gradual decline, suggesting a reduction in intangible asset amortization over time. Restructuring and other charges vary significantly, peaking in 2024 at US$3,491 million.

Gains and Investment Related Items

Gains on equity investments consistently register as negative, indicating losses or write-downs, with a peak net loss of US$4,254 million in 2022. Gains on divestitures occur primarily in 2022, amounting to US$1,059 million negatively, and significant proceeds from divestitures are present only that year. Deferred taxes show considerable volatility, swinging from a large negative figure in 2022 (-US$5,148 million) to a positive position of US$6,132 million in 2024. Impairments and losses on asset retirements appear only in the later years and increase significantly in 2024 (US$2,252 million).

Working Capital Changes

Accounts receivable fluctuate irregularly, peaking at US$5,327 million in 2022 but then turning negative by 2024. Inventories show negative values in most years except for 2023, indicating possible stock reductions or adjustments. Accounts payable and accrued compensation show inconsistency with shifts from positive to negative amounts over the years. Income taxes show swings between positive and negative values reflecting variability in tax obligations or benefits. Other assets and liabilities and changes in assets and liabilities similarly fluctuate, indicating variations in operational resource management.

Cash Flows

Net cash from operating activities trends downward from US$35,384 million in 2020 to US$8,288 million by 2024, matching the declining profitability. Investing activities consistently result in cash outflows, though the magnitude of net cash used for investing activities declines after peaking in 2023 (US$24,041 million). Capital expenditures remain substantial, with additions to property, plant, and equipment increasing until 2023 and slightly decreasing in 2024. Proceeds from capital-related government incentives appear in 2023 and 2024, contributing positively to cash inflows. Significant purchases of short-term investments outpace maturities and sales, resulting in continued negative net cash from investing activities.

Financing Activities

Financing activities reflect a dynamic situation: net cash used for financing is negative in 2020 and 2021 but turns positive from 2022 onward, peaking at US$11,138 million in 2024. Issuance of long-term debt generally increases, while repayments occur consistently but are smaller, indicating a net increase in debt. Partner contributions and proceeds from sales of subsidiary shares emerge as meaningful positive inflows in the last two years. Repurchase of common stock occurs only in 2020 and 2021, ceasing after 2021. Dividends paid to stockholders show a declining trend over the years.

Liquidity

Cash and cash equivalents show variability, increasing sharply in 2022 to reach US$11,144 million, then dropping in 2023 but recovering somewhat in 2024. The net increase/decrease in cash and cash equivalents follows a corresponding pattern, with notable negative movement in 2023 and modest positive movement in 2024.

In summary, the company exhibits weakening profitability alongside sustained operational cash flow generation, which diminishes over time. Investing activities reflect continued heavy capital spending, while financing activities show a mixed strategy with increased long-term borrowing and reduced share repurchases. Working capital elements fluctuate considerably, pointing to volatility in asset and liability management. Liquidity remains adequate but subject to fluctuations in cash flow dynamics.