Intel Corp. (NASDAQ:INTC)

The liquidity position, as indicated by the current, quick, and cash ratios, demonstrates a generally declining trend over the observed period, followed by a recent stabilization and, in some cases, improvement. Initial values show a relatively strong liquidity position, which gradually weakens through the first three quarters of 2023 before showing signs of recovery in late 2023 and into 2025.

Current Ratio

The current ratio begins at 2.13 and generally decreases to a low of 1.31 in September 2024. A slight recovery is then observed, reaching 1.33 in December 2024, before increasing to 2.02 by December 2025. This suggests a diminishing ability to cover short-term liabilities with short-term assets initially, followed by a strengthening of this ability in the most recent periods. The fluctuations indicate potential shifts in working capital management or changes in the composition of current assets and liabilities.

Quick Ratio

The quick ratio exhibits a similar downward trend, starting at 1.56 and reaching a low of 0.67 in June 2025. However, it shows a more pronounced recovery than the current ratio, increasing to 1.31 by December 2025. This indicates a weakening ability to meet short-term obligations with the most liquid assets, followed by a substantial improvement. The quick ratio’s sensitivity suggests a greater reliance on inventory to meet current obligations during the periods of decline.

Cash Ratio

The cash ratio demonstrates a consistent decline from 1.32 to a low of 0.61 in June 2025. A subsequent increase is observed, reaching 1.18 by December 2025. This indicates a decreasing ability to cover immediate liabilities with cash and cash equivalents, followed by a notable strengthening of this position. The cash ratio’s movement suggests changes in the company’s cash management practices or a shift in the need for readily available funds.

Overall, the ratios suggest a period of increasing liquidity pressure culminating in mid-2025, followed by a positive trend towards improved liquidity. The recovery in all three ratios during the latter part of the period is a positive sign, potentially indicating successful implementation of strategies to bolster the company’s short-term financial health.

The current ratio experienced fluctuations over the analyzed period, generally exhibiting a declining trend before a recent increase. Initial values indicated a relatively strong liquidity position, which subsequently weakened before showing signs of improvement in the latter quarters.

Overall Trend

The current ratio began at 2.13 and generally decreased through the end of 2023, reaching a low of 1.31. A subsequent upward trend is observed, culminating in a ratio of 2.02 in the most recent quarter. This suggests a period of decreasing short-term liquidity followed by a recovery.

Initial Decline (Apr 2, 2022 – Dec 31, 2022)

From April 2022 to December 2022, the current ratio decreased from 2.13 to 1.57. This decline occurred alongside decreases in both current assets and current liabilities, however, the decrease in current liabilities was proportionally smaller, contributing to the ratio’s reduction. This period indicates a potential tightening of short-term liquidity.

Stabilization and Further Decline (Apr 1, 2023 – Sep 30, 2023)

The ratio stabilized somewhat in the first half of 2023, fluctuating between 1.76 and 1.60. However, a further decline was observed through September 30, 2023, reaching 1.53. Both current assets and current liabilities continued to fluctuate, with current liabilities increasing slightly during this period.

Recent Improvement (Dec 30, 2023 – Dec 27, 2025)

Beginning with the December 30, 2023 period, the current ratio began to increase. The ratio reached 1.59 by June 29, 2024, and continued to climb, reaching 2.02 by December 27, 2025. This improvement is attributable to a more substantial increase in current assets compared to the increase in current liabilities. The most recent quarter shows a significant improvement in the company’s ability to cover its short-term obligations.

Quarterly Volatility

Throughout the analyzed period, the current ratio exhibited some degree of quarterly volatility. While the overall trend is discernible, individual quarterly fluctuations suggest potential seasonal or cyclical factors influencing short-term asset and liability management.

In conclusion, the current ratio demonstrates a pattern of initial decline, followed by stabilization and a recent, notable recovery. The latest figures suggest an improved short-term liquidity position.

The quick ratio exhibited fluctuating performance over the analyzed period, spanning from April 2022 to December 2025. Initially, the ratio demonstrated a decline from 1.56 to 1.01, followed by periods of relative stability and subsequent improvement towards the end of the observation window.

Initial Decline (Apr 2, 2022 – Dec 31, 2022)

A consistent downward trend in the quick ratio was observed during this timeframe. Starting at 1.56, the ratio decreased to 1.01. This suggests a weakening in the company’s ability to meet its short-term obligations with its most liquid assets. The decrease in total quick assets was proportionally greater than the change in current liabilities during this period, contributing to the decline.

Stabilization and Fluctuations (Apr 1, 2023 – Sep 30, 2023)

Following the initial decline, the quick ratio experienced a period of relative stabilization, fluctuating between 1.00 and 1.15. While not exhibiting a strong upward trend, the ratio did not continue its previous downward trajectory. Both quick assets and current liabilities remained relatively stable during this period.

Further Decline (Dec 30, 2023 – Jun 28, 2025)

A renewed downward trend was evident from December 2023 through June 2025. The quick ratio decreased from 1.01 to a low of 0.67. This decline was primarily driven by an increase in current liabilities, outpacing the changes in quick assets. The lowest point, 0.67, indicates a potentially concerning level of liquidity.

Recovery (Sep 27, 2025 – Dec 27, 2025)

The final two periods analyzed show a significant recovery in the quick ratio, increasing from 1.06 to 1.31. This improvement is attributable to a substantial increase in total quick assets, while current liabilities remained relatively stable. This suggests a strengthening of the company’s short-term liquidity position.

Overall Trend

The overall trend demonstrates cyclical behavior. While the ratio began at a relatively healthy level, it experienced a period of decline, stabilization, another decline, and ultimately a recovery. The fluctuations suggest sensitivity to changes in both liquid asset levels and short-term obligations. The final value of 1.31 represents the highest point in the observed period.

The observed fluctuations warrant continued monitoring to assess the sustainability of the recent improvement and to understand the underlying drivers of these changes in the quick ratio.

The cash ratio, representing the ability to meet current liabilities with only cash and cash equivalents, exhibits fluctuations over the observed period. Initially, the ratio demonstrates a decline from 1.32 to 0.81, followed by a period of relative stability and then a subsequent decrease before a recent upward trend.

Initial Decline (Apr 2, 2022 – Oct 1, 2022)

A consistent downward trend in the cash ratio is apparent during this timeframe. Starting at 1.32, the ratio decreases to 0.99 and then to 0.81. This suggests a relative decrease in the company’s most liquid assets compared to its immediate obligations during this period. The total cash assets decreased from US$38,696 million to US$22,559 million, while current liabilities remained relatively stable.

Stabilization and Subsequent Dip (Oct 1, 2022 – Sep 30, 2023)

Following the initial decline, the cash ratio stabilizes between 0.81 and 0.89 for several quarters. However, a further decrease is observed in the subsequent period, reaching 0.69 by Jun 29, 2024. This indicates a renewed weakening in the company’s immediate liquidity position. Current liabilities increased significantly during this period, contributing to the ratio’s decline.

Recent Improvement (Mar 30, 2024 – Dec 27, 2025)

The cash ratio demonstrates a positive trend in the most recent quarters. It increases from 0.65 to 1.18, reaching its highest point at 1.18 on December 27, 2025. This improvement is driven by a substantial increase in total cash assets, rising from US$21,048 million to US$37,416 million, while current liabilities have remained relatively stable. This suggests a strengthening of the company’s short-term liquidity.

Overall Trend

The overall trend is characterized by initial weakness, a period of stabilization, a subsequent dip, and a recent recovery. The fluctuations suggest potential shifts in working capital management, investment strategies, or financing activities. The recent increase in the cash ratio is a positive indicator, but continued monitoring is warranted to assess the sustainability of this trend.

The observed changes in the cash ratio should be considered in conjunction with other liquidity and solvency metrics to gain a comprehensive understanding of the company’s financial health.