Intel Corp. (NASDAQ:INTC)

The financial ratios reveal several notable trends over the examined periods.

Inventory Turnover

This ratio experienced a general decline from 4.06 to a low near 2.68 between early 2020 and mid-2023, indicating a slower rate of inventory being sold and replaced. Slight recovery is observed towards the end of the dataset, rising to 3.28 by the second quarter of 2025. This downward trend followed by modest improvement may suggest challenges in inventory management or changes in sales velocity.

Receivables Turnover

The ratio fluctuated considerably, initially declining from 11.48 to 8.36 by early 2022, followed by a sharp rise and volatility, reaching a peak of 22.49 in mid-2025. This pattern suggests varying efficiency in collecting receivables, with recent periods showing improved collection speed, potentially indicating enhanced credit policy enforcement or stronger cash inflows from sales.

Payables Turnover

This ratio decreased notably from a high around 6.14 in early 2020 to a trough near 2.85 by early 2025 before slightly rebounding. The reduction implies a lengthening in the payment period to suppliers, which could be a strategic cash flow management move or reflect potential liquidity pressures. The later increase signals some normalization in payment behavior.

Working Capital Turnover

After a decline from 3.46 to approximately 2.34 during the first half of the period, the ratio rose steadily, surging to 6.31 by mid-2025. This marked improvement suggests a more effective use of working capital to generate sales, possibly through better management of current assets and liabilities.

Average Inventory Processing Period (Days)

The inventory days extended from 90 to a peak of 136 by early 2023, reflecting longer inventory holding times. A gradual reduction to 111 days by mid-2025 indicates enhanced inventory turnover efficiency in recent quarters.

Average Receivable Collection Period (Days)

Initially increasing from 32 to 44 days by early 2021, the collection period later trended downward, reaching 16 days in mid-2025. This shortening signifies quicker conversion of receivables into cash, improving liquidity.

Operating Cycle (Days)

The operating cycle lengthened from 122 to a maximum around 165 days in late 2021 and early 2022, then gradually shortened to 127 days by mid-2025. This pattern reflects initial delays in the overall cash-to-cash cycle, followed by operational improvements reducing cycle time.

Average Payables Payment Period (Days)

The payment period lengthened significantly from 59 days to a peak of 128 days around early 2025, before decreasing slightly to 104 days by mid-2025. The substantial extension indicates delayed payments to suppliers, which can enhance short-term cash flow but may affect supplier relationships.

Cash Conversion Cycle (Days)

The cash conversion cycle showed volatility, rising from 63 days to a high of 96 days, then declining to as low as 21 days by early 2025, with a slight uptick thereafter. The overall reduction in cash conversion days suggests improved cash management and faster cash recovery from operational activities.

In summary, the data reflect a period of operational challenge marked by slower inventory turnover and lengthening payment periods, followed by improvements in receivables collection, working capital efficiency, and reduced cash conversion cycles. These trends indicate enhanced liquidity management and operational efficiency in recent quarters.

The cost of sales displayed notable fluctuations over the observed periods. Initially, it increased from 7,812 million USD in March 2020 to a peak of 9,734 million USD in July 2022. Subsequently, there was a general decline, reaching a low of 7,507 million USD in March 2024, but this was followed by volatility with the figure rising again to 11,287 million USD by September 2024, then fluctuating downward to 7,995 million USD by June 2025.

Inventories demonstrated a consistent upward trend throughout the periods. Starting at 9,246 million USD in March 2020, inventories increased steadily to reach a high of 13,224 million USD by December 2022. Afterward, there was a gradual decline, settling around 11,377 million USD by June 2025, indicating a buildup of stock over time with some recent reductions.

The inventory turnover ratio, available from December 2020 onwards, indicates a decreasing trend in efficiency initially, dropping from 4.06 to 2.68 by April 2023. This suggests a slowdown in how quickly inventories were sold and replaced. Following this period, the ratio showed modest fluctuations but generally remained within a narrow band between 2.68 and 3.28. The latest figures suggest a slight improvement in turnover efficiency, peaking at 3.28 in June 2025.

Cost of Sales

Experienced significant fluctuations, with an initial rise peaking mid-period followed by declines and episodic increases toward the end of the timeline.

Inventories

Displayed a clear upward trend overall, peaking in late 2022, then gently decreasing in later periods, indicating accumulation followed by partial reduction.

Inventory Turnover Ratio

Showed a declining trend at first, reflecting lower sales efficiency, followed by stabilization and some improvement toward the end of the data range.

The data reveals several noteworthy trends in the company's quarterly financials over the observed periods.

Net Revenue

Net revenue exhibits fluctuations with an overall downward tendency from early 2020 through mid-2023. Starting near 19.8 billion US dollars in the first quarter of 2020, revenue declined gradually, reaching a low point around 11.7 billion US dollars in the first quarter of 2023. Subsequently, a gradual recovery emerges, with revenues increasing towards approximately 14.3 billion US dollars by mid-2025. This indicates a phase of contraction followed by a moderate rebound in sales.

Accounts Receivable, Net

The net accounts receivable balance demonstrates variability with a downward trend overall. Beginning near 8.5 billion US dollars in the first quarter of 2020, the figure declines substantially over the quarters, reaching its lower levels around 2.3 billion US dollars by mid-2025. Notable decreases occur especially in 2022 and 2023, suggesting improved collections or a reduction in credit sales. Some quarters indicate short-term increases, possibly reflecting timing or sales recovery phases.

Receivables Turnover Ratio

The receivables turnover ratio, available from late 2020 onwards, indicates significant improvement in the efficiency of collecting receivables. Starting at about 11.5 times, the ratio dips modestly before trending upward steadily through the data series. By mid-2025, this ratio surpasses 22 times, nearly doubling the earlier levels. This suggests the company increasingly accelerated its collections relative to sales over time, possibly improving liquidity and reducing credit risk.

Overall, the data portrays a company experiencing revenue contraction in the early to mid-period, accompanied by a reduction in accounts receivable balances and a marked improvement in receivables management efficiency. The recovery in net revenue in the later quarters aligns with a sustained high receivables turnover, indicating strengthened operational and credit control practices.

Cost of Sales

The cost of sales exhibits a fluctuating but generally volatile pattern over the reviewed periods. Initially, it increased from $7.812 billion in March 2020 to a peak above $9.7 billion in mid-2022, followed by a decline in late 2022 and early 2023. Subsequently, the cost rose again leading to a substantial spike to about $11.3 billion by late 2024, before declining once more toward mid-2025. This variability suggests the company faced diverse operational or market conditions impacting production costs or sales volume unevenly across quarters.

Accounts Payable

The accounts payable balance trended upward consistently from $4.638 billion in March 2020 to a high of approximately $12.6 billion by mid-2025, indicating increased supplier credit or longer payment cycles. Short-term spikes were noticeable, particularly in late 2022 and throughout 2024, pointing to periods of pronounced increase in outstanding obligations. The sustained rise suggests growing operational scale or changes in payment policies affecting working capital management.

Payables Turnover Ratio

The payables turnover ratio, available only from late 2020 onward, shows a clear downward trend from 6.14 to around 3.33 by mid-2025. This decline reflects the company taking longer to pay its suppliers, implying a deliberate extension of payment terms or slower disbursement processes, which could be a strategic response to preserve cash or a sign of liquidity pressure. The ratio's decline is consistent with the rising accounts payable balance observed.

Overall Analysis

The combined analysis of cost of sales, accounts payable, and payables turnover ratio indicates that the company experienced fluctuating cost pressures while increasingly leveraging supplier credit over time. The lengthening payment cycles, as evidenced by the declining turnover ratio, may benefit short-term liquidity but could pose risks if supplier relationships are strained. The data suggests active management of working capital components amid variable operational demands.

The financial data reveals several key trends over the examined quarters. Working capital shows notable fluctuations throughout the periods. Initially, working capital increased from 17,606 million US dollars in March 2020 to a peak of 31,732 million US dollars in September 2021. Subsequently, it generally declined, reaching a low of 8,409 million US dollars by June 2025. This downward trend in recent periods indicates a reduction in available short-term liquidity or changes in current assets and liabilities management.

Net revenue demonstrates a decreasing trend overall, with some intermittent recoveries. Starting at 19,828 million US dollars in March 2020, revenue decreased gradually, falling to 14,042 million US dollars in December 2022. The periods following show fluctuating recovery attempts, reaching 15,406 million US dollars by December 2023 but then declining again to approximately 12,859 million US dollars by June 2025. This pattern suggests challenges in sustaining revenue growth and potential market or demand pressures.

The working capital turnover ratio, which measures how efficiently the company uses its working capital to generate revenue, exhibits a fluctuating but generally increasing trend. The ratio data is available from September 2020 onward, starting at 3.46 and reaching peaks above 6.0 in the latest periods. Notably, the ratio rises sharply from 2.93 in March 2025 to 6.31 in June 2025, indicating a significant improvement in capital efficiency despite the declining absolute values of working capital and net revenue. This could reflect tighter management of working capital components or operational adjustments enhancing efficiency.

Overall, the data suggests a shift toward more efficient use of working capital amid declining revenue and decreasing absolute working capital levels. The resilience in working capital turnover points to effective operational adjustments, even as top-line revenue and liquidity metrics face downward pressure.

Working Capital

Initially increased from 17.6 billion to 31.7 billion US dollars, followed by a decline to 8.4 billion US dollars by mid-2025.

Net Revenue

Decreased from nearly 19.8 billion US dollars to around 12.9 billion US dollars, with some intermittent recovery phases.

Working Capital Turnover

Increased steadily from 3.46 to over 6.3, indicating greater efficiency in using working capital to generate revenue despite revenue declines.

The analyzed quarterly financial data reveals distinct trends regarding inventory management over the examined periods.

Inventory Turnover Ratio

The inventory turnover ratio exhibits a generally declining trend from a high of 4.15 in June 2020 to lower values close to 2.68 in April 2023. After this nadir, a gradual recovery is observed, with the ratio increasing to 3.28 by June 2025. This indicates that the frequency at which inventory is sold and replaced slowed down initially but then began to improve towards the end of the series.

Average Inventory Processing Period

The average inventory processing period (in days) moves inversely relative to the turnover ratio. Starting at 90 days in March 2020, it lengthened progressively, peaking at 136 days in April 2023. Following this peak, a modest reduction occurs, bringing the period down to 111 days by June 2025. This pattern suggests that inventory was held longer in the initial periods and then managed more efficiently in the latter periods.

Overall, the data indicates that inventory management efficiency declined initially, as evidenced by a lower turnover ratio and longer processing time, before improving in more recent quarters. This could imply adjustments in operational strategy or external factors affecting inventory cycles. The observed improvements towards the end of the timeframe suggest a positive trend towards optimizing inventory turnover and reducing holding periods.

The receivables turnover ratio and the average receivable collection period present an inverse relationship over the analyzed periods, reflecting changes in the efficiency of the company's credit and collection processes.

Receivables Turnover Ratio Trends

Starting from March 28, 2020, data for the receivables turnover ratio is available beginning in March 27, 2021. From that point, there is a noticeable decline through December 25, 2021, dropping from 11.48 to 8.36, indicating a slowdown in the rate at which receivables are collected. Subsequently, the ratio exhibits significant fluctuations, rising sharply to a peak of 22.49 by June 28, 2025. This upward trend in later periods signals an increased efficiency in collecting receivables or possibly changes in sales credit terms or customer payment behavior.

Average Receivable Collection Period Trends

The average receivable collection period initially increased from 32 days in March 27, 2021, to 44 days by December 25, 2021, suggesting slower collections. Following this peak, the period decreases substantially to 16 days by June 28, 2025. This decline aligns with the increasing receivables turnover ratio, reflecting faster collection times and improving liquidity.

Relationship Between the Two Metrics

The inverse movement between the receivables turnover ratio and the average receivable collection period is consistent with expected financial behavior since a higher turnover ratio typically corresponds to a shorter collection period. The company experienced a period of declining receivables efficiency during 2021, followed by consistent improvement through 2025.

Insights

These trends may indicate initial challenges in managing accounts receivable or customer payment delays in 2021, followed by successful measures to enhance credit policies, collection efforts, or product mix. The improvement in receivables turnover and collection period by 2025 suggests enhanced working capital management and operational efficiency.

The data demonstrates notable trends in the inventory processing period, receivable collection period, and the overall operating cycle over the observed quarters.

Average Inventory Processing Period

This metric shows a generally increasing trend from 90 days in early 2020 to a peak of 136 days by April 2023. After reaching this peak, there is a gradual decline, falling to 111 days by June 2025. The increase suggests that inventory turnover slowed over several quarters before improving substantially towards the latest periods.

Average Receivable Collection Period

The receivable collection period fluctuates throughout the timeframe, increasing from 32 days in mid-2020 to a high of 44 days in April 2022. Following this peak, it experiences a steady decline, reaching a low of 16 days by June 2025. This trend indicates improvements in receivables management, with faster collections observed in the more recent quarters.

Operating Cycle

The operating cycle length mirrors the trends seen in inventory and receivables. It starts near 122 days in early 2020, rises steadily to a maximum of 165 days by late 2022, reflecting longer cash conversion cycles. Subsequently, the operating cycle shortens, dropping to 127 days by June 2025, suggesting enhanced efficiency in managing working capital over the period.

Overall, the company experienced a period of elongation in its working capital cycle, likely indicating slower inventory turnover and receivable collection in the middle of the timeline. However, the data also points to a subsequent phase of operational improvement, characterized by decreased inventory processing and receivables collection periods, leading to a more efficient operating cycle by the latest quarters.

Payables Turnover Ratio

The payables turnover ratio shows a declining trend over the analyzed periods. Initially recorded at 6.14, the ratio peaked slightly at 6.49 before entering a steady decrease. This decline continues with occasional minor fluctuations, reaching as low as 2.85 near the end of the time frame. The consistent decrease indicates that the frequency at which payables are being turned over is slowing down.

Average Payables Payment Period

The average payables payment period, measured in days, exhibits an inverse trend to the payables turnover ratio. Starting around 59 days, there is a noticeable increase over time, peaking at 128 days before a slight reduction to 104 days towards the end of the observations. This elongation in payment period implies that the company is taking longer to settle its payables over the periods analyzed.

Overall Insights

The inverse relationship between the payables turnover ratio and the average payment period is consistently evident across the data. As the turnover ratio decreases, the payment period increases, suggesting a strategic or operational shift in managing payables, possibly aimed at optimizing cash flow or dealing with liquidity constraints. The increasing payment period may reflect extended credit terms negotiated with suppliers or delayed payments.

The analysis of the quarterly financial data reveals several noteworthy trends in the company's working capital management over the examined time frame.

Average Inventory Processing Period

This metric exhibits an overall increasing trend from 90 days in March 2020 to a peak of 136 days in April 2023, indicating a lengthening time taken to process inventory. Post this peak, a gradual decline is observed, dropping to 111 days by June 2025. The fluctuations suggest potential changes in inventory management efficiency or shifts in demand and supply conditions.

Average Receivable Collection Period

The receivable collection period shows variability across the quarters. Initially rising from 32 days in March 2020 to a high of 44 days in April 2022, this metric then declines steadily to 16 days by June 2025. The reduction in collection days towards the latter periods indicates improved efficiency in collecting receivables, enhancing cash inflows.

Average Payables Payment Period

The payables payment period shows an upward trajectory, beginning at 59 days in March 2020 and increasing to a maximum of 128 days in September 2024. Although slight declines and fluctuations are present in the later quarters, it remains significantly elevated compared to the start. This extension in payables suggests the company may be leveraging extended credit terms from suppliers, potentially improving short-term liquidity.

Cash Conversion Cycle

The cash conversion cycle (CCC) reflects the net time taken to convert investments in inventory and receivables into cash. The CCC varies notably, increasing from 63 days in March 2020 to a peak of 96 days in March 2021, then experiencing a series of declines and rises. Importantly, from April 2023 onward, there is a marked decrease from 76 days down to 23 days by June 2025. This steady reduction in CCC suggests overall improvement in working capital efficiency, reflecting faster cash recoveries.

In summary, the company's inventory processing time initially lengthened but began improving in the most recent periods. Receivables have been collected more rapidly over time, and payables have been extended increasingly, which collectively contributed to a significant reduction in the cash conversion cycle in the latter quarters. These patterns indicate enhanced operational efficiency and potentially improved liquidity management approaching the end of the period analyzed.