Intel Corp. (NASDAQ:INTC)

Return on Assets (ROA)

The ROA demonstrates a consistent downward trend over the five-year period. Starting at 13.65% in 2020, it declined to 11.8% in 2021, followed by a more pronounced drop to 4.4% in 2022. The decreasing trend continued into 2023, reaching a marginal 0.88%, and further deteriorated into negative territory at -9.55% by 2024. This pattern indicates that asset efficiency in generating profit has substantially weakened over time, culminating in losses relative to total assets by the final year.

Financial Leverage

The financial leverage ratio remained relatively stable with slight fluctuations across the period. Beginning at 1.89 in 2020, it decreased marginally to 1.77 in 2021, then slightly increased to 1.8 in 2022, and 1.81 in 2023. By 2024, there was a more noticeable increase to 1.98. Overall, the leverage ratio stayed close to the 1.8-2.0 range, reflecting a moderate but stable reliance on debt financing, with a slight uptick in leverage towards the end of the period.

Return on Equity (ROE)

The ROE exhibits a significant downward trajectory similar to ROA, suggesting declining profitability from shareholders’ perspective. In 2020, the ROE was 25.79%, decreasing to 20.83% in 2021, dropping steeply to 7.9% in 2022, and declining further to a mere 1.6% in 2023. By 2024, ROE turned negative to -18.89%. This decline alongside increasing financial leverage in 2024 may indicate deteriorating earnings performance despite the use of debt, potentially impacting shareholder value negatively.

The financial data over the five-year period reveals significant changes in the key profitability and efficiency metrics, indicating a shifting operational and financial landscape.

Net Profit Margin

The net profit margin shows a continuous decline from 26.84% in 2020 to a negative margin of -35.32% in 2024. This steep downward trend reflects increasing challenges in maintaining profitability, with the margin turning negative in the final year, signaling operational losses or extraordinary financial pressures.

Asset Turnover

Asset turnover decreased steadily from 0.51 in 2020 to 0.27 in 2024. This decline suggests a diminishing efficiency in utilizing assets to generate sales revenue, indicating potential underutilization of resources or declining sales relative to asset base growth.

Financial Leverage

Financial leverage experienced minor fluctuations but generally remained stable around a ratio of 1.8, increasing slightly to 1.98 by 2024. This suggests a modest increase in reliance on debt or other fixed financial obligations to finance assets, which may amplify financial risk, especially in the context of deteriorating profitability.

Return on Equity (ROE)

Return on equity exhibited a pronounced decline from 25.79% in 2020 to -18.89% in 2024, mirroring the trend in net profit margin. The negative ROE at the end of the period highlights a loss for shareholders and points to significant challenges in generating value from equity investments.

Overall, the data indicate a deteriorating financial performance characterized by reduced profitability, lowered asset efficiency, and slightly increased financial leverage. These trends point to operational difficulties and potential financial risk concerns that warrant close attention and strategic review.

The analysis of the financial ratios over the five-year period reveals several notable trends and shifts.

Tax Burden

This ratio demonstrates a rising trend from 0.83 in 2020 to a peak of 2.18 in 2023, indicating an increasing portion of income retained after tax or potentially accounting anomalies in the later year. The data for 2024 is unavailable, preventing further trend analysis for this period.

Interest Burden

The interest burden remains relatively stable between 0.98 and 0.94 from 2020 to 2022 but sharply declines to 0.47 in 2023. This suggests a significant reduction in earnings before interest and taxes relative to pre-interest operating income, which potentially reflects increased interest expenses or decreased operating income.

EBIT Margin

A clear downward trajectory occurs here, with EBIT margin decreasing from 33.01% in 2020 to a negative figure of -18.27% in 2024. This indicates a deteriorating operating profitability, where the company moves from a healthy profit margin to operating losses over this timespan.

Asset Turnover

Asset turnover decreases steadily from 0.51 in 2020 to 0.27 in 2024, implying declining efficiency in generating sales from assets. This reduction in asset utilization suggests potential challenges in maximizing revenue generation from its asset base.

Financial Leverage

Financial leverage remains mostly stable, fluctuating modestly between 1.77 and 1.98 over the five years. The slight increase toward 1.98 in 2024 may indicate an increased reliance on debt or other forms of financing, which can amplify returns but also elevate financial risk.

Return on Equity (ROE)

ROE exhibits a significant decline, from a solid 25.79% in 2020 down to -18.89% in 2024. This transition from positive to negative ROE signals a fundamental downturn in shareholder profitability, mirroring the trends observed in EBIT margin and asset efficiency.

Overall, the financial indicators portray a company experiencing decreasing profitability and efficiency over this period, with growing financial risk. These patterns warrant further detailed investigation to identify underlying causes and potential strategic responses.

The financial ratios exhibit significant downward trends over the five-year period under review, indicating a deterioration in operational efficiency and profitability.

Net Profit Margin

The net profit margin shows a progressive decline from 26.84% in 2020 to a negative figure of -35.32% in 2024. The margin remained relatively stable between 2020 and 2021, followed by a sharp drop from 12.71% in 2022 to near breakeven at 3.11% in 2023, ultimately plunging into negative territory. This trend signals escalating costs or declining revenues severely impacting profitability.

Asset Turnover

The asset turnover ratio declines steadily from 0.51 in 2020 to 0.27 in 2024. This decrease suggests the company is generating less revenue per unit of asset over time, indicating reduced efficiency in utilizing its assets to produce sales or a possible asset base expansion not matched by revenue growth.

Return on Assets (ROA)

ROA deteriorated from a healthy 13.65% in 2020 to a negative -9.55% in 2024. This decline mirrors decreasing profitability and asset utilization efficiency. The downward trajectory is consistent with the diminishing net profit margin and asset turnover, highlighting escalating losses relative to the asset base.

Overall, the trends demonstrate weakening financial performance characterized by declining profitability and efficiency metrics. The persistent negative movement, especially the significant losses reflected in the 2024 figures, may indicate operational challenges, increased costs, or external factors adversely impacting the company's financial health.

The financial ratios indicate a notable shift in the company's operational and profitability metrics over the reported periods. There is a clear downward trend in profitability as reflected through several key indicators.

Tax Burden

Initially, the tax burden ratio increased steadily from 0.83 in 2020 to 2.18 in 2023, indicating a rising portion of earnings being influenced by taxes. The lack of data for 2024 prevents analysis for the most recent year.

Interest Burden

This ratio shows a gradual decrease from 0.98 in 2020 to 0.94 in 2022, followed by a sharp decline to 0.47 in 2023. This trend suggests a significant increase in interest expense relative to EBIT in the last reported year, possibly indicating higher leverage or cost of debt.

EBIT Margin

The EBIT margin exhibits a marked deteriorating trend from 33.01% in 2020 down to -18.27% in 2024. This sharp contraction highlights a substantial reduction in operating profitability, moving from strong positive margins to negative territory, which may point to operational inefficiencies or adverse market conditions.

Asset Turnover

Asset turnover decreases consistently from 0.51 in 2020 to 0.27 in 2024, suggesting a declining efficiency in using assets to generate revenue over the years.

Return on Assets (ROA)

The ROA follows a declining trajectory from 13.65% in 2020 to -9.55% in 2024. The falling ROA underscores diminishing overall asset profitability, culminating in a negative return in the last year, which may signify losses or underperforming asset utilization.

Overall, the data reveals a deteriorating profitability and efficiency scenario, characterized by increasing tax and interest burdens, shrinking EBIT margins, declining asset turnover, and a negative return on assets in the most recent year reported.

The financial data for the indicated periods reveal significant trends in the profitability and burden ratios over time.

Tax Burden

The tax burden ratio shows a noticeable increase from 0.83 in 2020 to 2.18 in 2023. This upward trend indicates that taxes or related expenses have increasingly impacted the company's earnings, culminating in more than doubling within the observed period. Data for 2024 is not provided, so recent developments remain unclear.

Interest Burden

The interest burden ratio has gradually declined from 0.98 in 2020 to 0.47 in 2023, suggesting a reduced impact of interest expenses relative to earnings before interest and taxes. This trend may reflect lower debt levels or more favorable financing costs. The latest year’s data is not available.

EBIT Margin

The EBIT margin exhibits a marked downward trend, dropping substantially from 33.01% in 2020 to just 3.05% in 2023, followed by a negative margin of -18.27% in 2024. This indicates a sharp deterioration in operating profitability, moving from strong positive earnings to a loss position by the end of the period.

Net Profit Margin

Similarly, the net profit margin decreases significantly from 26.84% in 2020 to 3.11% in 2023 and turns strongly negative at -35.32% in 2024. This pattern reflects worsening bottom-line results, with profitability virtually eroded and substantial net losses occurring in the most recent year.

Overall, the company appears to have experienced rising tax-related burdens alongside reduced interest costs, but these financial changes have not prevented a considerable decline in both operating and net profitability. The data indicate sustained financial challenges culminating in negative profitability by 2024, suggesting the need for strategic review and remedial action.