Intel Corp. (NASDAQ:INTC)

The analysis of the financial ratios over the examined periods reveals notable fluctuations in the company's profitability and leverage metrics. The key indicators considered include Return on Assets (ROA), Financial Leverage, and Return on Equity (ROE).

Return on Assets (ROA)

The ROA displayed a relatively strong level initially, with values around 12-14% through early 2022, indicating efficient asset utilization. However, from late 2022, a declining trend is observed, dipping into negative territory between early 2023 and late 2024, reaching a low of approximately -10.65%. This decline suggests reduced profitability from asset operations during this period. The final period shows a slight recovery toward near zero.

Financial Leverage

The financial leverage ratio remained relatively stable, fluctuating narrowly between approximately 1.68 and 1.98 across all periods. This stability suggests that the company's capital structure has maintained a consistent balance between equity and debt financing without significant shifts that might amplify financial risk.

Return on Equity (ROE)

The ROE trend closely resembles that of ROA but with more pronounced volatility. Early periods reflect strong returns above 20%, peaking at nearly 24%. From late 2022 onward, ROE declined sharply into negative values, bottoming out close to -21% by late 2024. This points to a substantial decrease in profitability attributable to shareholders during this timeframe. A modest recovery is noted in the final period, though the value remains below early period levels.

In summary, the company experienced robust profitability and stable leverage ratios initially, but profitability metrics weakened significantly starting from the end of 2022 through 2024. The persistent negative return rates during these periods suggest operational or market challenges impacting financial performance. Nonetheless, the steadiness in financial leverage indicates conservative management of financial risk. The slight improvement in the most recent data could indicate early signs of stabilization or recovery.

Net Profit Margin

The net profit margin displayed initial stability with values around 23% to 27% during 2021, followed by a peak reaching approximately 31.68% in early 2022. Subsequently, there was a noticeable decline, dropping to negative territory by early 2023. While a slight recovery occurred during the 2023 and early 2024 periods, the margin again sharply decreased to deeply negative figures by late 2024 and early 2025. Overall, the trend indicates significant volatility with a downward trajectory over the full period.

Asset Turnover

Asset turnover exhibited a gradual and consistent decline from approximately 0.52 in early 2021 to about 0.26 by mid-2025. This steady decrease suggests a diminishing efficiency in generating revenue relative to the company's asset base over time.

Financial Leverage

Financial leverage ratios fluctuated moderately around the range of 1.68 to 1.98, without a clear upward or downward long-term trend. The values indicate relatively stable use of debt compared to equity, with minor variations reflecting changes in capital structure but no significant shifts.

Return on Equity (ROE)

Return on equity mirrored the trend seen in net profit margin, starting at strong positive levels near 23% in early 2021, with a peak around 23.87% in early 2022. This was followed by a steady decline, reaching negative values by early 2023. Although the ROE showed modest improvement during parts of 2023 and early 2024, it again plunged into negative territory in late 2024 and early 2025. The data reflects a deterioration in profitability and value creation for shareholders over the examined time frame.

The financial indicators demonstrate a varied but overall declining performance trend over the examined quarters.

Net Profit Margin

The net profit margin started at a robust level near 24% in early 2021, peaking above 31% in the first quarter of 2022. This was followed by a significant deterioration, reaching negative territory around early 2023. Despite minor recoveries in mid-2023, the margin sharply declined again, hitting its lowest point near -38.6% by late 2025 before a slight recovery to near zero percent. This pattern suggests volatility and challenges in maintaining profitability, especially in the later periods.

Asset Turnover

The asset turnover ratio exhibits a consistent downward trend throughout the timeline. Beginning at 0.52 in early 2021, the ratio steadily decreased to around 0.26 by the end of 2025. This decline indicates decreasing efficiency in utilizing assets to generate revenue, suggesting either increased asset base without proportional revenue growth or diminishing sales performance over time.

Return on Assets (ROA)

Return on assets followed a similar trajectory to net profit margin, starting positively at around 12% and peaking close to 14% in early 2022. Subsequently, ROA declined sharply, turning negative by early 2023, with the lowest point near -10.7% occurring towards the end of the period. There was a minor improvement noted just before the steep decline, but the overall trend points towards deteriorating asset profitability, reflecting the combined effects of reduced profitability and less efficient asset usage.

In summary, the data indicate that the company experienced strong profitability and asset efficiency in the initial years, with a peak in early 2022. However, from 2023 onwards, there is a marked decline in profitability margins and asset returns alongside a gradual reduction in asset turnover. This suggests growing operational challenges and inefficiencies, leading to negative profitability in multiple quarters within the latest periods.