Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Intel Corp., liquidity ratios
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.33 | 1.54 | 1.57 | 2.10 | 1.91 | |
| Quick ratio | 0.72 | 1.01 | 1.01 | 1.38 | 1.24 | |
| Cash ratio | 0.62 | 0.89 | 0.88 | 1.03 | 0.97 |
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).
The analysis of the financial liquidity ratios over the five-year period presents a clear declining trend in the company's short-term financial strength and ability to cover current liabilities.
- Current Ratio
- The current ratio decreased steadily from 1.91 in 2020 to 1.33 in 2024. Although the ratio remained above 1.0, indicating that current assets still exceeded current liabilities, the reduction suggests a weakening margin of liquidity. This trend could imply that the company's short-term financial buffer has diminished, potentially increasing liquidity risk if liabilities are called upon.
- Quick Ratio
- The quick ratio, which excludes inventory from current assets, showed a similar downward pattern, moving from 1.24 in 2020 to 0.72 in 2024. The decline below 1.0 in the later years highlights a more pronounced reduction in liquid assets relative to current liabilities. This drop may signal increasing dependence on inventory liquidation or a tightening in readily available liquid resources.
- Cash Ratio
- This ratio, representing the most conservative liquidity measure by considering only cash and cash equivalents over current liabilities, also declined from 0.97 in 2020 to 0.62 in 2024. The consistent decrease reinforces the insight that immediate liquidity has become more constrained, potentially affecting the company's capability to cover short-term obligations without relying on the sale of other assets.
Overall, the consistent downward trends across all three liquidity ratios suggest a gradual erosion of the company's short-term financial flexibility over the analyzed period. This pattern may warrant attention to working capital management and cash flow strategies to ensure sufficient liquidity for operational stability.
Current Ratio
Intel Corp., current ratio 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) | ||||||
| Current assets | 47,324) | 43,269) | 50,407) | 57,718) | 47,249) | |
| Current liabilities | 35,666) | 28,053) | 32,155) | 27,462) | 24,754) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.33 | 1.54 | 1.57 | 2.10 | 1.91 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 2.62 | 2.51 | 2.36 | 2.02 | 2.54 | |
| Analog Devices Inc. | 1.84 | 1.37 | 2.02 | 1.94 | 1.84 | |
| Applied Materials Inc. | 2.51 | 2.60 | 2.16 | 2.54 | 3.00 | |
| Broadcom Inc. | 1.17 | 2.82 | 2.62 | 2.64 | 1.87 | |
| KLA Corp. | 2.15 | 2.24 | 2.50 | 2.71 | 2.78 | |
| Lam Research Corp. | 2.97 | 3.16 | 2.69 | 3.30 | 3.43 | |
| Micron Technology Inc. | 2.64 | 4.46 | 2.89 | 3.10 | 2.71 | |
| Monolithic Power Systems Inc. | 5.31 | 7.74 | 5.36 | 4.96 | 5.73 | |
| NVIDIA Corp. | 4.17 | 3.52 | 6.65 | 4.09 | 7.67 | |
| Qualcomm Inc. | 2.40 | 2.33 | 1.75 | 1.68 | 2.14 | |
| Texas Instruments Inc. | 4.12 | 4.55 | 4.70 | 5.33 | 4.28 | |
| Current Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 2.15 | 2.46 | 2.35 | 2.47 | 2.47 | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.24 | 1.41 | 1.37 | 1.55 | 1.71 | |
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 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 47,324 ÷ 35,666 = 1.33
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibited a fluctuating trend over the five-year period. Starting at $47,249 million in 2020, they increased significantly to $57,718 million in 2021. However, this was followed by a decline to $50,407 million in 2022 and further decreased to $43,269 million in 2023. In 2024, there was a modest recovery with current assets rising again to $47,324 million.
- Current Liabilities
- Current liabilities showed an overall upward trajectory. Beginning at $24,754 million in 2020, liabilities increased steadily each year with a marked jump in 2022 to $32,155 million, a slight decrease in 2023 to $28,053 million, and then a significant increase in 2024 reaching $35,666 million.
- Current Ratio
- The current ratio demonstrated a steady decline throughout the period from a strong 1.91 in 2020, peaking slightly higher at 2.1 in 2021, then declining sharply to 1.57 in 2022 and continuing to decrease to 1.54 in 2023. By 2024, the current ratio further declined to 1.33, indicating a reduction in short-term liquidity relative to current liabilities.
- Summary
- Overall, the data suggests that while current assets experienced volatility with initial growth followed by declines and partial recovery, current liabilities followed an increasing trend with some fluctuations. The decreasing current ratio over the years indicates a relative weakening in the company's ability to cover short-term obligations with its current assets, potentially reflecting increasing short-term financial pressure or changes in working capital management.
Quick Ratio
Intel Corp., quick ratio calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 8,249) | 7,079) | 11,144) | 4,827) | 5,865) | |
| Short-term investments | 13,813) | 17,955) | 17,194) | 23,586) | 18,030) | |
| Accounts receivable, net | 3,478) | 3,402) | 4,133) | 9,457) | 6,782) | |
| Total quick assets | 25,540) | 28,436) | 32,471) | 37,870) | 30,677) | |
| Current liabilities | 35,666) | 28,053) | 32,155) | 27,462) | 24,754) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.72 | 1.01 | 1.01 | 1.38 | 1.24 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 1.66 | 1.67 | 1.57 | 1.49 | 1.81 | |
| Analog Devices Inc. | 1.24 | 0.76 | 1.34 | 1.24 | 1.31 | |
| Applied Materials Inc. | 1.74 | 1.63 | 1.17 | 1.64 | 1.95 | |
| Broadcom Inc. | 0.82 | 2.34 | 2.18 | 2.27 | 1.56 | |
| KLA Corp. | 1.36 | 1.33 | 1.57 | 1.81 | 1.82 | |
| Lam Research Corp. | 1.93 | 1.95 | 1.72 | 2.11 | 2.22 | |
| Micron Technology Inc. | 1.59 | 2.53 | 1.92 | 2.17 | 1.82 | |
| Monolithic Power Systems Inc. | 3.72 | 5.84 | 3.50 | 3.66 | 4.50 | |
| NVIDIA Corp. | 3.38 | 2.61 | 5.96 | 3.56 | 7.04 | |
| Qualcomm Inc. | 1.64 | 1.51 | 1.01 | 1.34 | 1.75 | |
| Texas Instruments Inc. | 2.55 | 3.12 | 3.67 | 4.45 | 3.34 | |
| Quick Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.42 | 1.64 | 1.63 | 1.80 | 1.79 | |
| Quick Ratio, Industry | ||||||
| Information Technology | 0.96 | 1.12 | 1.08 | 1.30 | 1.46 | |
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 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 25,540 ÷ 35,666 = 0.72
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets have shown a fluctuating trend over the five-year period. Starting at 30,677 million US dollars in 2020, they increased to a peak of 37,870 million US dollars in 2021, followed by a decline to 32,471 million in 2022. This downward trend continued in 2023 and 2024, reaching 25,540 million. Overall, the quick assets decreased by approximately 16.8% from 2020 to 2024.
- Current liabilities
- Current liabilities have risen consistently over the period, from 24,754 million US dollars in 2020 to 35,666 million in 2024. There was a steady increase each year, with a notable rise between 2023 and 2024 where liabilities increased by about 7,613 million. This represents an overall increase of approximately 44% over the five years.
- Quick ratio
- The quick ratio shows a declining trend. It started at 1.24 in 2020, improved slightly to 1.38 in 2021, but then dropped sharply to 1.01 in 2022 and remained stable in 2023. By 2024, the quick ratio fell significantly to 0.72, indicating a reduced ability to cover current liabilities with quick assets. This suggests diminished short-term liquidity and potential pressure on working capital management.
Cash Ratio
Intel Corp., cash ratio 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) | ||||||
| Cash and cash equivalents | 8,249) | 7,079) | 11,144) | 4,827) | 5,865) | |
| Short-term investments | 13,813) | 17,955) | 17,194) | 23,586) | 18,030) | |
| Total cash assets | 22,062) | 25,034) | 28,338) | 28,413) | 23,895) | |
| Current liabilities | 35,666) | 28,053) | 32,155) | 27,462) | 24,754) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.62 | 0.89 | 0.88 | 1.03 | 0.97 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.70 | 0.86 | 0.92 | 0.85 | 0.95 | |
| Analog Devices Inc. | 0.79 | 0.30 | 0.60 | 0.71 | 0.77 | |
| Applied Materials Inc. | 1.12 | 0.93 | 0.35 | 0.86 | 1.29 | |
| Broadcom Inc. | 0.56 | 1.92 | 1.76 | 1.94 | 1.20 | |
| KLA Corp. | 0.97 | 0.87 | 0.94 | 1.19 | 1.17 | |
| Lam Research Corp. | 1.35 | 1.28 | 0.77 | 1.25 | 1.55 | |
| Micron Technology Inc. | 0.88 | 2.01 | 1.24 | 1.34 | 1.23 | |
| Monolithic Power Systems Inc. | 2.93 | 4.86 | 2.80 | 3.19 | 4.05 | |
| NVIDIA Corp. | 2.44 | 2.03 | 4.89 | 2.95 | 6.11 | |
| Qualcomm Inc. | 1.27 | 1.18 | 0.54 | 1.04 | 1.29 | |
| Texas Instruments Inc. | 2.08 | 2.58 | 3.04 | 3.79 | 2.75 | |
| Cash Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.00 | 1.24 | 1.15 | 1.31 | 1.33 | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.57 | 0.71 | 0.66 | 0.89 | 1.06 | |
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 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 22,062 ÷ 35,666 = 0.62
2 Click competitor name to see calculations.
Analysis of the financial data reveals several notable trends over the five-year period.
- Total Cash Assets
- The total cash assets exhibited an initial increase from approximately 23,895 million USD in 2020 to 28,413 million USD in 2021, indicating a strong liquidity position. However, from 2021 onwards, cash assets gradually declined each year, falling to about 22,062 million USD by 2024. This downward movement suggests a reduction in readily available cash resources over the latter part of the period.
- Current Liabilities
- Current liabilities increased substantially over the timeframe, rising from 24,754 million USD in 2020 to 35,666 million USD by 2024. The increase was somewhat uneven, with a peak in 2022 at 32,155 million USD, a slight decrease in 2023, and then a sharp increase in 2024. This indicates growing short-term obligations that may pose increased liquidity risk if not managed carefully.
- Cash Ratio
- The cash ratio, which measures the company’s ability to cover its current liabilities with cash and cash equivalents, started just below parity at 0.97 in 2020, improved slightly to 1.03 in 2021, and then declined progressively to 0.62 by 2024. This downward trend, especially the decline below 1.0 from 2022 onward, suggests a weakening in the company’s immediate liquidity position relative to its obligations.
Overall, the data reflects a scenario where cash assets have decreased since 2021 while current liabilities have risen, leading to a deteriorating cash ratio and potentially tighter liquidity conditions by the end of 2024. This trend may warrant attention to ensure that liquidity remains sufficient to meet short-term obligations.