Intel Corp. (NASDAQ:INTC)

Inventory Turnover

The inventory turnover ratio shows a general declining trend from 4.15 to 2.68 between March 2021 and April 2023, indicating slower inventory movement over time. From April 2023 onward, the ratio gradually recovers, reaching 3.28 by June 2025, suggesting an improvement in how efficiently inventory is managed in the later periods.

Receivables Turnover

Receivables turnover fluctuates considerably, starting at 10.78 in March 2021, dipping to a low of 8.36 in December 2021, and then rising sharply to 22.49 by June 2025. This pattern reflects varied collections efficiency, with notable improvements in recent quarters indicating faster collection of outstanding receivables.

Payables Turnover

Payables turnover shows a decreasing trend from 6.49 in March 2021 to around 3.33–3.49 in mid-2025, indicating a slower payment pace to suppliers over time. This implies longer payment periods and potential changes in credit terms or liquidity management.

Working Capital Turnover

The working capital turnover ratio declines initially from 3.59 to 2.34 between March 2021 and April 2022 but then rises substantially, peaking at 6.31 by June 2025. This signifies improved efficiency in generating sales from working capital resources, particularly in the most recent quarters.

Average Inventory Processing Period

The average inventory processing period increases steadily from 88 days in March 2021 to a peak of 136 days in April 2023, indicating longer holding times. After this apex, the days decline gradually to 111 by June 2025, consistent with the improved inventory turnover trend seen later.

Average Receivable Collection Period

The receivable collection period rises from 34 days to a high of 44 days by December 2021, suggesting slower collections, followed by a marked reduction to 16 days by June 2025. This downward trend reflects enhanced receivables management and faster cash inflow collection.

Operating Cycle

The operating cycle lengthens from 122 days in March 2021 to 165 days in October 2022, indicating increased time to convert inventory and receivables into cash. From that point, it shortens progressively to 127 days by June 2025, reflecting a more efficient operation cycle in recent periods.

Average Payables Payment Period

The average payable payment period generally increases from 56 days in March 2021 to a peak of 128 days in December 2024, indicating a trend of delaying payments to suppliers. This extended payment horizon could be part of working capital management strategies, although a slight decrease follows, moving to 104 days by June 2025.

Cash Conversion Cycle

The cash conversion cycle (CCC) fluctuates, initially around mid-60s days, peaking at 96 days in December 2021 and again rising in late 2022 before trending downward to a low of 21 days by December 2024. This decline indicates a significant improvement in the efficiency of converting resources into cash, enhancing liquidity in the latest quarters.

The financial data displays notable trends in cost of sales, inventories, and inventory turnover over multiple quarters.

Cost of Sales

Cost of sales in USD millions fluctuates across the periods presented. Initial values show costs near 8.8 billion, with some quarters rising close to or above 9 billion, peaking at 11.3 billion in one quarter before receding in subsequent periods. The trend indicates variability, with occasional spikes suggesting periods of increased production or sales activity, followed by moderation. The cost reached its lowest point near 7.5 billion in Q1 2024 and highest near 11.3 billion in Q4 2024, implying some seasonality or operational adjustments.

Inventories

Inventory levels exhibit a steady upward trend over the timeline, rising from approximately 8.5 billion USD to over 12 billion USD by mid-2025. The increase in inventory suggests accumulation and possibly a strategic buildup of stock. The trend, however, shows a slight decline in later quarters after peaking, indicating efforts to manage or reduce inventory towards the end of the period analyzed.

Inventory Turnover Ratio

The inventory turnover ratio presents a declining trend from over 4.1 in early 2021 down to a trough near 2.68 by early 2023, which reflects slower movement of inventory relative to cost of sales. After this decline, the turnover ratio begins to improve gradually, reaching above 3.2 in mid-2025. This pattern suggests initial challenges in inventory management or demand, followed by improved efficiency in converting inventory to sales in later periods.

Overall, the data reveals an environment of fluctuating costs and growing inventory levels initially coupled with decreasing turnover efficiency. The latter part of the timeline shows signs of inventory management improvement and stabilization in cost fluctuations. Such insights suggest a focus on optimizing inventory and controlling costs to enhance operational effectiveness.

The analysis of the quarterly financial data reveals several notable trends in revenue, accounts receivable, and receivables turnover ratios over the observed periods.

Net Revenue

Net revenue has exhibited a generally declining trend from March 2021 through June 2025. Starting at approximately $19.7 billion in early 2021, revenue decreased gradually across most quarters, reaching lows around $11.7 billion in early 2023. Despite some recovery signs with revenues increasing to approximately $15.4 billion by the end of 2023, revenue again showed fluctuation and slight decline in 2024 and 2025. This pattern suggests cyclical or market-driven variability in sales volumes or pricing power.

Accounts Receivable, Net

Net accounts receivable have displayed considerable volatility and an overall downward movement over the reporting periods. Initially rising from about $7.2 billion in early 2021 to peak near $9.5 billion in late 2021, the balance then declined significantly, reaching a trough closer to $2.4 billion by mid-2025. The sharp reduction in receivables during 2022 and 2023 could indicate improved collections or tighter credit policies. More recent quarters reflect stabilization but at a much lower level compared to the early periods.

Receivables Turnover Ratio

The receivables turnover ratio has improved markedly over time, moving from a ratio of approximately 8.36 in late 2021 up to 22.49 by mid-2025. This upward trend implies that the company has become more efficient at converting accounts receivable to cash, which may be attributed to enhanced credit management, more effective collection strategies, or shifts in sales terms. The improvement in turnover ratio coincides with the reduction in accounts receivable balances, reinforcing the notion of enhanced collection efficiency.

In summary, the data suggest a revenue profile experiencing fluctuations with an overall decline, accompanied by a disciplined reduction in accounts receivable and a significant enhancement in receivables turnover efficiency. These patterns may reflect adaptive operational or financial strategies in response to market and internal factors over the reported periods.

The cost of sales fluctuated over the observed periods with notable variability. Initially, it decreased from 8,819 million USD to 8,425 million USD, then showed minor changes before reaching a peak in the last quarters. The highest value was observed in September 2024 at 11,287 million USD, followed by a decline and subsequent increases, suggesting periodic shifts possibly due to operational adjustments or market factors affecting production costs.

Accounts payable demonstrated an overall increasing trend across the time periods. Starting at 5,434 million USD, accounts payable rose steadily with some fluctuations, reaching a maximum of 12,556 million USD by June 2025. This rising pattern signifies an expansion of credit purchases or extended payment terms from suppliers over time.

The payables turnover ratio exhibited a distinct downward trend from 6.49 to as low as 2.85 during the observed timeline, with slight recoveries toward the end. This ratio decline indicates that the company is taking longer to pay its suppliers or slower payment cycles, which correlates with the increasing accounts payable balances. The lower turnover ratio may reflect changes in working capital management or supplier negotiations.

Cost of Sales

Displayed variability with an initial decrease, mid-period fluctuations, and a notable peak in September 2024 before tapering.

Accounts Payable

Consistently increased over time, more than doubling from the start to the end of the series, implying growing payables or extended credit terms.

Payables Turnover Ratio

Experienced a significant decline, indicating slower payments to suppliers, consistent with increased accounts payable balances.

The financial data reveals distinct trends in working capital, net revenue, and working capital turnover over the observed quarters.

Working Capital

Working capital shows an overall declining trend from the earlier to the later periods. It reached a peak around the third quarter of 2021 with a value exceeding 31 billion USD, followed by a general decrease through subsequent quarters. By mid-2025, working capital dropped to below 9 billion USD, indicating a significant reduction in liquid assets available to fund day-to-day operations.

Net Revenue

Net revenue exhibits fluctuations with some periods of decline and partial recoveries. It started at nearly 20 billion USD in early 2021, then declined progressively to around 14 billion USD by the end of 2022. Into 2023, revenues further decreased, reaching a low near 11.7 billion USD before rebounding moderately to around 14.3 billion USD by late 2024. However, a slight decline is evident again toward mid-2025, suggesting challenges in maintaining consistent growth in sales or service income.

Working Capital Turnover

The working capital turnover ratio, which reflects the efficiency of using working capital to generate revenue, demonstrates substantial variability. Initially, the ratio was relatively high at approximately 3.6 but declined to about 2.3 by early 2022, indicating a lower efficiency in converting working capital into revenue. Subsequently, the turnover ratio improved notably, exceeding 3.5 during late 2022 and early 2023. A particularly strong increase in the turnover ratio is observed from late 2024 into 2025, reaching over 6.3 by mid-2025. This suggests a marked improvement in operational efficiency, possibly driven by better working capital management or a relative decrease in working capital compared to revenue.

In summary, the company experienced significant decreases in working capital and net revenue over the observed timeframe, yet operational efficiency, as measured by working capital turnover, improved markedly in the latter periods. This could imply strategic adjustments focusing on maximizing resource utilization despite facing revenue declines and reduced working capital. Continued monitoring of these metrics is advisable to assess if the improved turnover ratio can sustain operational effectiveness amid fluctuating revenue trends.

Inventory Turnover Ratio

The inventory turnover ratio exhibits a clear declining trend initially, dropping from 4.15 to a low of 2.68 over a span from March 2021 to April 2023. This indicates a slowdown in the rate at which inventory is sold and replaced during this period. Following this decline, the ratio stabilizes somewhat, fluctuating modestly between 2.78 and 2.95 for the next four quarters.

Notably, in the most recent periods ending June 2025, the ratio shows an upward movement, increasing from 2.95 to 3.28. This suggests an improvement in inventory management efficiency or higher sales velocity relative to inventory levels toward the end of the timeline analyzed.

Average Inventory Processing Period

This metric demonstrates a strong inverse relationship to the inventory turnover ratio, as expected. The average inventory processing period increases steadily from 88 days to a peak of 136 days between March 2021 and April 2023, signifying that inventory is being held longer before sale.

From April 2023 onward, this period declines gradually with some fluctuations, reaching 111 days by June 2025. The reduction in days indicates enhanced inventory turnover efficiency and potentially improved operational or sales performance during this later timeframe.

Overall Insights

Over the analyzed periods, there is an evident shift from a slower inventory turnover environment with extended holding periods toward a more efficient management scenario. The easing of inventory processing duration alongside a rising turnover ratio towards the end of the timeline points to positive developments in inventory control or demand fulfillment.

The interim period of reduced turnover and longer holding might suggest challenges such as demand softness, supply chain delays, or strategic stockpiling, which appear to have been partially resolved or improved upon in later quarters.

The receivables turnover ratio displays notable fluctuations over the observed periods, indicating varying efficiency in collecting receivables. Initially, the ratio starts relatively high at 10.78 and gradually declines to a low of 8.36 by the end of 2021. Subsequent quarters reveal a recovery and an upward trend, peaking significantly at 22.49 in June 2025. This peak suggests a marked improvement in the company's ability to convert receivables into cash.

Correspondingly, the average receivable collection period generally moves inversely to the receivables turnover ratio, as expected. It begins at 34 days, increasing to a peak of 44 days by December 2021, which indicates a slowdown in collections. Following this, the collection period shortens substantially, reaching a low of 16 days by June 2025. The reduction in days outstanding is consistent with the increase in receivables turnover, reflecting enhanced efficiency in collecting payments from customers.

Overall, the financial data suggests that after a period of declining collections efficiency through 2021, there is a sustained improvement in receivables management from 2022 onward. This improvement is evident in the rising turnover ratio coupled with the shrinking collection period, which together imply strengthened cash flow management and potentially a more rigorous credit control policy or faster customer payments over the later periods.

Average Inventory Processing Period

The average inventory processing period exhibits a generally increasing trend from 88 days in early 2021 to a peak around 136 days by early 2023. Following this peak, there is a slight decline, with fluctuations around the mid-120s to low 130s range until mid-2025, where a notable reduction to 111 days occurs. This pattern suggests an initial lengthening of inventory holding times, possibly due to supply chain or demand-related factors, followed by improvements in inventory turnover or management efficiency in the more recent periods.

Average Receivable Collection Period

The receivable collection period shows variability but an overall trend towards improvement. Starting at 34 days in early 2021, the period fluctuates, with some increases noted in late 2021 and early 2022, reaching up to 39 days. Subsequently, there is a decline to consistently lower levels around 20-25 days during 2023 and 2024. The latest data indicates a further improvement, reaching 16 days by mid-2025. This reduction likely reflects enhanced credit control and collection processes, improving cash flow from customers over time.

Operating Cycle

The operating cycle, which combines inventory and receivables periods, increased from 122 days in early 2021 to a peak of 165 days by late 2022. After this peak, the cycle shows some moderation, stabilizing in the range of approximately 145 to 152 days through 2023 and 2024, before dropping significantly to 127 days by mid-2025. The initial increase corresponds with lengthening inventory periods and some volatility in receivables collection, while the later reduction aligns with the improvements in both inventory turnover and receivables collection periods.

The payables turnover ratio demonstrates a declining trend over the examined periods, indicating a slowing rate at which the company is paying off its accounts payable. Initially, the ratio starts at 6.49 and experiences fluctuations but predominantly decreases, reaching values below 4.0 in recent quarters. This suggests that the company is taking longer to settle its payables compared to earlier periods.

Complementing this trend, the average payables payment period, expressed in number of days, shows an increasing trajectory. Starting from 56 days, it rises consistently with some fluctuations, ending at 104 days in the latest period. This confirms an elongation in the time taken for vendor payments, moving from just under two months to over three months.

Payables turnover ratio

Declined from 6.49 to around 3.3-3.5 in later periods, signaling slower payments to suppliers.

Average payables payment period

Increased from 56 days to just over 100 days, supporting the observation of extended payment terms or slower cash outflows to suppliers.

The overall pattern reflects a strategic or operational shift resulting in longer payment cycles. This might be indicative of cash management practices aimed at preserving liquidity, renegotiated payment terms with suppliers, or potential challenges in working capital management. While this may improve short-term cash flow, extended payment periods could affect supplier relationships and the company's credit terms in the long run.

Inventory Processing Period

The average inventory processing period exhibits a generally rising trend from 88 days in March 2021 to a peak near 136 days in April 2023. Following this peak, a gradual decrease is observed down to 111 days by June 2025. This indicates an initial lengthening in the time inventory remains in stock, which then shortens significantly towards the end of the period under review.

Receivable Collection Period

The average receivable collection period fluctuates over the timeframe but shows an overall declining pattern. It begins at 34 days in March 2021, temporarily increases to 44 days by December 2021, then steadily decreases, reaching a low of 16 days in June 2025. This decreasing trend suggests improvements in the efficiency of collections from customers.

Payables Payment Period

The average payables payment period presents increased variability with a clear upward trend overall. Starting at 56 days in March 2021, it increases with some fluctuations to a peak of 128 days by June 2025. This longer payment period implies a potential extension in the company’s credit terms with suppliers or a strategic delay in disbursing payables.

Cash Conversion Cycle

The cash conversion cycle shows significant fluctuations but demonstrates an overall downward trend. The cycle begins at 66 days in March 2021, peaks at 96 days in December 2021, and then steadily declines to a low point of 21 days by December 2024. A slight uptick occurs thereafter but remains low at 23 days by June 2025. This trend indicates increasing operational efficiency in converting investments in inventory and receivables back to cash.

Summary Insights

The trends in the inventory processing and receivables collection periods suggest that while inventory turnover initially slowed, its recent improvement coupled with faster receivables collection has positively affected liquidity. Simultaneously, the extended payables payment period indicates the company is effectively managing supplier payments to support cash flow. Overall, the notable reduction in the cash conversion cycle over the period analyzed reflects enhancements in working capital management and operational efficiency.