Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Return on Invested Capital (ROIC)
Intel Corp., ROIC calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| ROIC3 | ||||||
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit After Taxes (NOPAT)
- The NOPAT shows a significant declining trend over the analyzed period. It starts at a high value of 22,960 million USD in 2020, decreases to 19,493 million USD in 2021, and then undergoes a sharp drop to 3,672 million USD in 2022. In 2023 and 2024, NOPAT becomes negative, reaching -1,469 million USD and further declining to -13,095 million USD respectively. This indicates a transition from profitability to substantial operational losses by the end of the period.
- Invested Capital
- The invested capital demonstrates a gradual upward trend. Beginning at 81,967 million USD in 2020, it increases steadily each year, reaching 88,498 million USD in 2021, 88,671 million USD in 2022, 92,095 million USD in 2023, and 92,296 million USD in 2024. This steady increase suggests the company has been consistently increasing its asset base or capital employed despite the deteriorating profitability.
- Return on Invested Capital (ROIC)
- ROIC decreases markedly throughout the timeframe. Initially, it is at a high level of 28.01% in 2020, falls to 22.03% in 2021, and plummets to 4.14% in 2022. It becomes negative afterward, with -1.6% in 2023 and -14.19% in 2024. The downward trajectory aligns with the diminishing NOPAT and indicates increasing inefficiency in the use of invested capital to generate returns.
Decomposition of ROIC
Intel Corp., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 28, 2024 | = | × | × | ||||
| Dec 30, 2023 | = | × | × | ||||
| Dec 31, 2022 | = | × | × | ||||
| Dec 25, 2021 | = | × | × | ||||
| Dec 26, 2020 | = | × | × |
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
- Operating Profit Margin (OPM)
- The operating profit margin shows a clear and continuous decline over the analyzed periods. It decreased from 32.68% in 2020 to a negative value of -21.05% by the end of 2024. This trend indicates a significant deterioration in operational efficiency and profitability, culminating in losses from operations in the final year.
- Turnover of Capital (TO)
- The turnover of capital ratio exhibits a steady decrease each year, moving from 0.95 in 2020 down to 0.58 in 2024. This consistent decline suggests a diminishing efficiency in utilizing capital to generate revenue, potentially reflecting reduced asset productivity or increased capital base without proportional revenue growth.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate, expressed here as "1 – CTR," fluctuates significantly. It started very high at over 87% in 2020 and 2021, then dropped notably to 42.87% in 2022 before increasing sharply to 100% in both 2023 and 2024. The rise to 100% indicates that the company is not retaining any cash benefit from tax shields in those years, possibly due to losses or taxation policy changes.
- Return on Invested Capital (ROIC)
- Return on invested capital follows a downward trajectory similar to the operating profit margin, falling from a robust 28.01% in 2020 to a negative return of -14.19% by the end of 2024. This decline highlights a reduced ability to generate profitable returns from invested capital, reflecting operational challenges and inefficient capital allocation during the period.
Operating Profit Margin (OPM)
Intel Corp., OPM calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Net revenue | ||||||
| Profitability Ratio | ||||||
| OPM3 | ||||||
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
OPM = 100 × NOPBT ÷ Net revenue
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit Before Taxes (NOPBT)
- The net operating profit before taxes demonstrated a declining trend over the observed periods. Initially, the NOPBT was strong at 25,448 million USD in late 2020, followed by a moderate decrease to 22,168 million USD in 2021. Subsequently, a sharper decline occurred, with values dropping to 8,566 million USD by the end of 2022. The trend continued downwards, culminating in negative figures in 2023 (-464 million USD) and further deteriorating to -11,178 million USD in 2024. This progression indicates growing operational challenges and diminishing profitability before tax considerations over the five-year span.
- Net Revenue
- Net revenue showed a fluctuating but predominantly downward pattern. Starting at 77,867 million USD in 2020, a slight increase to 79,024 million USD was observed in 2021. However, from 2022 onwards, revenue decreased significantly, falling to 63,054 million USD, then further to 54,228 million USD in 2023, and marginally down to 53,101 million USD by 2024. The data suggests that after a period of stability and minor growth, sales or income streams faced persistent declines.
- Operating Profit Margin (OPM)
- The operating profit margin mirrored the declining pattern seen in profit and revenue figures. It started at a robust 32.68% in 2020, decreased to 28.05% in 2021, then sharply fell to 13.58% by 2022. In 2023, the margin turned negative at -0.86%, indicating operational losses relative to net revenue. By 2024, the margin further dropped to -21.05%, signaling substantial operational inefficiencies or cost issues affecting profitability.
- Summary
- Across the five-year period, there is a clear and consistent decline in both profit and revenue, culminating in negative operating profit margins and losses before taxes in recent years. These patterns reflect increasing challenges in sustaining operational profitability amid decreasing net revenues. The negative profitability indicators in the later years suggest potential structural issues or adverse market conditions that have significantly impacted financial performance.
Turnover of Capital (TO)
Intel Corp., TO calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Invested capital1 | ||||||
| Efficiency Ratio | ||||||
| TO2 | ||||||
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
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).
1 Invested capital. See details »
2 2024 Calculation
TO = Net revenue ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
The financial data reveals significant trends in revenue, invested capital, and capital turnover over the five-year period from 2020 to 2024.
- Net Revenue
- Net revenue experienced a decline throughout the period. Starting at $77,867 million in 2020, it slightly increased to $79,024 million in 2021, then dropped sharply to $63,054 million in 2022. This downward trend continued in 2023 and 2024, with revenues recorded at $54,228 million and $53,101 million respectively.
- Invested Capital
- Invested capital consistently increased each year. From $81,967 million in 2020, it rose to $88,498 million in 2021 and slightly increased to $88,671 million in 2022. The upward trend became more pronounced in 2023 and 2024, reaching $92,095 million and $92,296 million respectively.
- Turnover of Capital (TO)
- The turnover of capital ratio, which indicates the efficiency of capital use to generate revenue, showed a steady decline. It was 0.95 in 2020, decreasing to 0.89 in 2021 and continuing downward to 0.71 in 2022. The ratio further declined to 0.59 in 2023 and 0.58 in 2024, reflecting reduced efficiency in utilizing invested capital to generate revenue.
Overall, the data illustrates a scenario where net revenues are diminishing while invested capital is increasing, resulting in a continuous decline in capital turnover efficiency. This suggests challenges in converting capital investment into equivalent revenue growth during the analyzed periods.
Effective Cash Tax Rate (CTR)
Intel Corp., CTR calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Tax Rate | ||||||
| CTR3 | ||||||
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
- Cash Operating Taxes
- The cash operating taxes exhibited a fluctuating trend over the analyzed periods. Starting at 2,488 million USD in December 2020, the amount increased to 2,675 million USD in December 2021, followed by a significant jump to 4,893 million USD in December 2022. Subsequently, there was a sharp decline to 1,005 million USD in December 2023 before rising again to 1,916 million USD in December 2024. This pattern suggests volatility in taxable income or tax planning strategies affecting cash tax payments.
- Net Operating Profit Before Taxes (NOPBT)
- The net operating profit before taxes demonstrated a notable downward trajectory. Beginning at 25,448 million USD in December 2020, it decreased moderately to 22,168 million USD by the end of 2021, then sharply dropped to 8,566 million USD in December 2022. The trend further deteriorated with a negative result of -464 million USD in December 2023, culminating in a substantial loss of -11,178 million USD in December 2024. This indicates a significant decline in operating profitability over the period, potentially reflecting operational challenges or adverse market conditions.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate rose markedly in the earlier years, from 9.78% in December 2020 to 12.07% in December 2021, and then sharply increased to 57.13% in December 2022. Data for the subsequent years is missing, however, the earlier trend suggests that tax liabilities became a larger portion of operating profits before taxes over these periods, possibly due to reduced profitability or changes in tax regulation or structure.
- General Insights
- The combined analysis shows a substantial decline in profitability over the five-year span, accompanied by high volatility in cash operating taxes and a marked increase in the effective cash tax rate up to 2022. The deteriorating operating profit leading into negative territory suggests operational or strategic issues impacting earnings before tax. The volatility in cash taxes despite shrinking profits may reflect complex tax strategies, non-cash adjustments, or timing differences. The incomplete data on the effective tax rate for the latest years limits comprehensive understanding of the tax burden in the context of reduced profitability.