Intel Corp. (NASDAQ:INTC)

Debt to Equity Ratio

The debt to equity ratio shows a moderate fluctuation throughout the observed periods. Initially, it decreases from 0.52 in March 2020 to a low of 0.35 in July 2022, indicating a gradual reduction in the company's reliance on debt relative to equity. Subsequently, this ratio rises again, reaching about 0.52 by June 2025, suggesting an increased leverage or borrowing relative to shareholders’ equity towards the later periods.

Debt to Capital Ratio

A generally consistent downward trend is observed in the debt to capital ratio from 0.34 in early 2020 to a low of 0.26 in mid-2022, indicating a reduction in debt as a component of the company’s overall capital structure. After this point, the ratio trends slightly upward but remains near the initial levels by mid-2025, fluctuating in the range of 0.32 to 0.34, reflecting a relatively stable balance between debt and total capital over the long term.

Debt to Assets Ratio

The debt to assets ratio decreases modestly from 0.27 in March 2020 to around 0.21 in early 2022, reflecting a decline in the proportion of total assets financed by debt. Following this low point, the ratio returns to approximately 0.26 by mid-2025, indicating a slight increase in asset financing through debt but still maintaining a generally moderate level of indebtedness relative to the asset base.

Financial Leverage Ratio

The financial leverage ratio declines from 1.93 in March 2020 to a trough of 1.68 in July 2022, suggesting a decrease in the extent to which the company uses debt financing relative to equity. After this decline, the leverage ratio increases again, reaching values close to or above the initial levels (up to approximately 1.98) by late 2024 and mid-2025, indicating a heightened reliance on borrowed funds to finance assets in the most recent periods.

General Observations

Across all leverage-related metrics, there is a clear pattern of reduction in debt usage from 2020 through mid-2022, followed by a reversal and gradual increase through 2025. This suggests the company initially focused on deleveraging or reducing financial risk, then shifted towards increasing leverage potentially to support growth or capital expenditures. The fluctuations in financial leverage and debt ratios imply a dynamic capital management strategy responsive to the company's operational and financial environment.

The financial data reveals discernible trends in debt, equity, and leverage ratios over the observed periods. The total debt initially shows a declining pattern from March 2020 through June 2021, decreasing from approximately $39.9 billion to $35.4 billion. Following this phase, the total debt generally increases, with some fluctuations, reaching a peak of around $53 billion in June 2024 before slightly retracting toward the end of the series.

Total stockholders’ equity exhibits a generally upward trajectory from March 2020 to June 2024, climbing from approximately $76.4 billion to a peak exceeding $115 billion. A notable dip occurs after June 2024, with equity declining to just below $98 billion by June 2025.

The debt to equity ratio demonstrates variability that corresponds with the movements in debt and equity. Initially, the ratio declines from 0.52 in March 2020 to a low near 0.35 in July 2022, reflecting a combination of falling debt levels and rising equity. Subsequent quarters reveal an increase in the leverage ratio, reaching back to approximately 0.52 by June 2025, signaling a relative increase in debt levels compared to equity.

Overall, these patterns suggest a period of deleveraging followed by gradual re-leveraging. The company initially reduced its debt relative to equity, strengthening its balance sheet, before increasing its debt burden in later periods. The rise and subsequent fall in equity levels imply changes in retained earnings, asset valuations, or shareholder transactions that impact net worth. This interplay between debt and equity affects financial risk and capital structure dynamics, highlighting periods of both cautious and more aggressive financial positioning.

Total Debt

Declined from $39.9 billion to $35.4 billion (Q1 2020 to Q2 2021), then trended upward to $53 billion (Q2 2024), followed by slight decreases.

Total Stockholders’ Equity

Increased from $76.4 billion to $115.2 billion (Q1 2020 to Q2 2024), then declined to approximately $97.9 billion by Q2 2025.

Debt to Equity Ratio

Fell from 0.52 to 0.35 (Q1 2020 to Q3 2022), indicating deleveraging; then rose back to 0.52 by Q2 2025, indicating increased leverage.

Financial Implications

Initial balance sheet strengthening through reduced leverage, followed by a phase of increased debt usage relative to equity, suggesting shifting risk appetite or capital needs over the periods.

The analysis of the debt and capital structure over the reported periods reveals several key trends and observations.

Total Debt

The total debt demonstrates some fluctuations with a moderate upward trend over the long term. Initially, the total debt decreased slightly from 39,919 million US dollars in March 2020 to a low point near 35,409 million US dollars in June 2021. Subsequently, debt levels exhibited volatility, with increases and decreases but an overall upward movement reaching a peak of approximately 53,029 million US dollars in June 2024 before marginal declines near the end of the observed period.

Total Capital

Total capital shows a generally increasing pattern with some variability. It rose from 116,273 million US dollars in March 2020 to a high near 168,258 million US dollars in June 2024. However, there was a notable decrease starting immediately afterward, where capital dropped below 150,000 million US dollars by the end of the reporting period in June 2025. This suggests some contraction or restructuring of capital in the most recent quarters following a strong growth phase.

Debt to Capital Ratio

The debt to capital ratio behaved within a relatively narrow band between approximately 0.26 and 0.34. Early in the timeline, the ratio showed a declining trend from around 0.34 to a low near 0.26 by mid-2022, indicating a modest deleveraging or an increase in equity relative to debt. After mid-2022, the ratio reversed course, climbing back to around 0.34 by mid-2025. This rise indicates an increasing proportion of debt within the capital structure, reflecting the increase in total debt alongside the decreasing total capital seen in later periods.

Overall Insights

Over the entire period, the company's capital base expanded significantly until mid-2024, supported by controlled increases in debt. The debt to capital ratio's moderate fluctuations suggest a balanced approach towards leverage, maintaining it roughly one-third of total capital. The recent trend toward higher leverage alongside declining total capital may warrant closer attention as it might reflect changing financial strategy, increased risk tolerance, or responses to external financing conditions. Maintaining a debt to capital ratio near one-third can indicate a moderate risk profile, but the rising trend in the ratio coupled with decreasing capital may impact future financial stability.

Total Debt

The total debt exhibited fluctuations over the observed periods. Initially, it decreased gradually from approximately 39.9 billion USD in March 2020 to around 35.4 billion USD by June 2021. Subsequently, a noticeable increase occurred, peaking at about 50.3 billion USD in April 2023. Following this peak, total debt stabilized somewhat but remained elevated, fluctuating near 50 billion USD through mid-2025.

Total Assets

Total assets demonstrated an overall upward trend during the time horizon. Starting at roughly 147.7 billion USD in March 2020, assets experienced growth with some intermittent variations. Total assets reached about 185.6 billion USD by mid-2023 and continued to rise, peaking at approximately 206.2 billion USD in September 2024 before slightly retracting to near 192.5 billion USD by mid-2025. This trajectory reflects a general expansion in asset base over the five-year period.

Debt to Assets Ratio

The debt to assets ratio generally remained within a narrow range, indicating relative stability in capital structure dynamics. It started at approximately 0.27 in early 2020 and declined gradually to reach a low near 0.21 in the first quarter of 2022, signifying a reduction in leverage relative to assets. From 2023 onwards, the ratio increased back to the range of 0.25 to 0.27, reflecting a rise in debt levels relative to assets consistent with the observed increase in total debt. The ratio's fluctuation suggests periodic adjustments in financing strategy while maintaining moderate leverage levels.

Overall Insights

The data indicates that the company managed to grow its asset base significantly over the period analyzed, albeit with some volatility. The total debt increased notably after mid-2021, suggesting possible strategic borrowing or increased liabilities. Despite this rise in debt, the leverage ratio remained relatively stable, demonstrating a balance between debt and asset accumulation. This balance could imply prudent financial management focused on supporting growth while controlling risk associated with leverage. The stabilization of debt levels in recent quarters suggests a period of consolidation following aggressive borrowing phases.

The analysis of the quarterly financial data reveals distinct trends in total assets, stockholders' equity, and financial leverage over the observed periods.

Total Assets

Total assets display a general upward trend with some fluctuations. Starting at approximately 147.7 billion USD in March 2020, assets increased to around 168.4 billion USD by December 2021. Thereafter, assets continued to grow, peaking near 206.2 billion USD in September 2024. However, the final quarters show a slight decline, settling close to 192.5 billion USD by June 2025. These variations suggest periods of asset accumulation likely due to investment or acquisition activities, followed by stabilization or asset optimization in the later quarters.

Total Intel Stockholders’ Equity

Stockholders' equity exhibits modest growth with a volatile pattern. Initially valued at approximately 76.4 billion USD in March 2020, equity rose sharply to over 95 billion USD by December 2021. This increase is followed by fluctuations in subsequent quarters, reaching a high of about 115.2 billion USD in June 2024. After this peak, equity declines somewhat, ending near 97.9 billion USD in June 2025. This pattern indicates periods of retained earnings growth and capital infusions, interspersed with potential shareholder distributions or valuation adjustments.

Financial Leverage

The financial leverage ratio hovers within a narrow band throughout the periods. Beginning around 1.93 in March 2020, leverage exhibits minor decreases and increases, reaching a low near 1.68 by July 2022, indicating an improvement in equity relative to debt. Subsequently, the ratio trends upward again, nearing 1.97 by June 2025. Overall, the leverage ratio remains relatively stable but shows signs of increased leverage in the most recent quarters, reflecting a possible strategic shift toward higher debt usage or capital structure adjustments.

In summary, the company’s total assets and stockholders' equity have grown over the analyzed timeframe with some variability, while the financial leverage ratio has remained relatively stable but trending slightly higher toward the end of the period. These patterns suggest ongoing active management of capital structure and asset base amidst changing market or operational conditions.