Intel Corp. (NASDAQ:INTC)

The financial ratios exhibit notable trends over the analyzed periods, reflecting changes in operational efficiency, liquidity management, and overall working capital dynamics.

Inventory Turnover

The inventory turnover ratio demonstrates a gradual decline from a peak of 4.15 in mid-2020 to levels around 2.7 to 2.9 in subsequent periods, stabilizing close to 2.9 by the end of 2024. This indicates a slowing in the rate at which inventory is sold and replaced, suggesting either increased inventory levels or slower sales velocity over time.

Receivables Turnover

Receivables turnover shows volatility with an initial decline from 11.48 in early 2020 to a low near 8.36 in early 2021, followed by a recovery and substantial peaks, reaching values above 18 in late 2022 to mid-2023. This pattern indicates fluctuations in credit and collection policies or changes in sales composition affecting receivables management efficiency.

Payables Turnover

There is a marked decrease in payables turnover from about 6.14 in early 2020 to levels fluctuating between 3.2 and 3.8 by 2024. A lower payables turnover ratio implies longer payment terms or slower payment of suppliers, potentially reflecting strategic liquidity management or cash flow considerations.

Working Capital Turnover

The working capital turnover ratio experienced variability, starting above 3.5, dipping below 2.5 during some quarters in 2020 and 2021, and then recovering significantly to peak above 5.0 near the end of 2024. This suggests changes in the effectiveness of using working capital to generate sales, with recent periods showing improved efficiency.

Average Inventory Processing Period

The average inventory processing period increased from approximately 90 days to a peak of around 136 days between 2020 and early 2023, followed by a slight downward adjustment into the mid-120 day range by late 2024. The extended processing time aligns with the decline in inventory turnover, indicating slower movement of inventory through the system.

Average Receivable Collection Period

The average receivable collection period lengthened from about 32 days to a high near 44 days in 2021, then steadily shortened to around 21 to 24 days in recent periods. This improvement suggests enhanced receivables management and faster cash collection from customers over time.

Operating Cycle

The operating cycle mirrors the sum of inventory processing and receivable collection periods, showing an increasing trend from 122 days up to approximately 165 days by early 2022, then a gradual reduction to around 145 days by late 2024. This indicates initial lengthening likely due to inventory build-up or slower collections, with subsequent improvements in cycle efficiency.

Average Payables Payment Period

The average payables payment period increased from about 59 days to a peak of 128 days by late 2024 before slightly declining. This implies the company extended its payment terms or delayed payments to suppliers, possibly to improve liquidity or manage cash outflows strategically.

Cash Conversion Cycle

The cash conversion cycle trends upward initially, peaking at 96 days in early 2021, followed by a significant decline to values near 20 days or lower by late 2024. This reduction highlights enhanced operating efficiency by shortening the time between cash outflows for inventory and receivables inflows, improving overall cash flow management.

Overall, the data reveal a pattern of initial operational slowdowns reflected in longer inventory processing and operating cycles, coupled with increased payables payment periods. Subsequent periods demonstrate improved receivables management and a marked reduction in the cash conversion cycle, indicating a strategic focus on liquidity and working capital optimization in recent quarters.

Cost of Sales

The cost of sales exhibits notable fluctuations over the analyzed periods. Initially, the values rise from 7,812 million USD (Mar 2020) to a peak of 9,734 million USD (Jul 2022). After this peak, a declining trend is observed with some variability, reaching 7,995 million USD by Sep 2024, but it spikes again to 11,287 million USD in Dec 2024 before decreasing to 8,676 million USD in Mar 2025. Overall, the data indicates periods of both increased and decreased production costs, reflecting possible shifts in sales volume, pricing, or input costs during the quarters.

Inventories

Inventory levels generally trend upward over the reported quarters. Starting from 9,246 million USD (Mar 2020), inventories increase steadily, reaching a high of 13,224 million USD by Dec 2022. After peaking, a gradual decline is evident with fluctuating values, declining to 11,981 million USD approximately by Jul 2023, and then rising slightly again to 12,281 million USD by Mar 2025. This pattern suggests a strategic accumulation of stock over time with occasional adjustments, potentially in response to demand forecasts or supply chain considerations.

Inventory Turnover Ratio

The inventory turnover ratio shows a consistent downward trend from around 4.06 in Dec 2020 to approximately 2.68 by Apr 2023, indicating slower inventory movement. Following this low point, the ratio fluctuates slightly but remains near 2.9 through Mar 2025. This decreasing trend in turnover ratio implies either an accumulation of inventory relative to sales or a slowdown in sales velocity, signaling potential inefficiencies or changes in inventory management strategies.

Summary Insights

The data reflects a scenario where inventory levels have generally increased while the rate at which inventory is sold or utilized has declined, as shown by the lowering inventory turnover ratio. This could point to growing stockpiles or slower sales performance. Concurrently, the cost of sales does not consistently increase in tandem with inventory, suggesting variability in cost structures or pricing strategies. The spike in cost of sales at the end of 2024 might indicate special circumstances, such as increased production costs or a surge in sales volume during that quarter. Overall, the trends may highlight challenges in balancing inventory management with cost efficiency and sales dynamics.

The financial data over the observed quarters shows notable variations in key metrics such as net revenue, accounts receivable, and receivables turnover. A detailed examination reveals several discernible trends and patterns.

Net Revenue

Net revenue demonstrates fluctuating values across the reporting periods. Initially, the revenue figures remain relatively stable, hovering around the 19,000 to 20,500 million US$ range until the end of 2021. Starting from early 2022, there is a marked declining trend, with revenues dropping from approximately 18,353 million US$ to about 12,667 million US$ by the first quarter of 2025. This decline suggests challenges in maintaining sales levels or market demand during this timeframe, with minor upticks noted in some quarters, such as 15,406 million US$ in the fourth quarter of 2023. Overall, the net revenue trajectory indicates a downward pressure on revenues in the latter part of the dataset.

Accounts Receivable, Net

The accounts receivable balance exhibits variability, showing an initial decline from 8,455 million US$ in early 2020 to a low near 6,063 million US$ by mid-2022. Following this period, the amounts fluctuate within the 3,000 to 3,800 million US$ range through 2023 and 2024, with some minor oscillations. This reduction from earlier periods suggests improved collections or potentially reduced sales on credit terms. The relatively stabilized, lower receivable values in the latest quarters may reflect tightened credit policies or shifts in customer payment behaviors.

Receivables Turnover

The receivables turnover ratio illustrates significant changes over the quarters, beginning with values near 11.48 in late 2020 and declining steadily to around 8.36 by the end of 2021, indicating slower collections relative to sales during that period. Subsequently, there is a notable improvement in turnover rates, peaking between 18 and 18.6 in 2023, suggesting more efficient collections or reduced credit sales. Later quarters show a slight moderation in turnover but maintain relatively higher levels than earlier periods, implying sustained improvements in receivables management or changes in credit terms.

In summary, the data points to a contraction in net revenue beginning in 2022, accompanied by lower accounts receivable balances and an improved receivables turnover ratio in recent periods. These patterns collectively indicate that while overall sales have declined, the company has enhanced its efficiency in collecting receivables, potentially through credit policy adjustments or better collection practices.

Cost of Sales

The cost of sales fluctuated throughout the periods, starting at 7,812 million USD in March 2020 and rising to a peak of 11,287 million USD in September 2024. After this peak, there was a notable decline to 7,995 million USD in March 2025. In general, the cost exhibited a cyclical pattern with several increases and decreases, reflecting variability in operational expenses or production costs over time.

Accounts Payable

Accounts payable demonstrated an overall upward trend. Beginning at 4,638 million USD in March 2020, it increased steadily, reaching a high of 12,556 million USD in December 2024 before slightly declining to 10,896 million USD in March 2025. This growth indicates an increasing amount of short-term liabilities or delayed payments to suppliers over the examined periods.

Payables Turnover Ratio

The payables turnover ratio showed a consistent declining trend, starting at 6.14 times in December 2020, and decreasing to a low of 2.85 times in December 2024 before a modest recovery to 3.33 times in March 2025. This indicates the company is taking longer to pay off its suppliers, corresponding with the growth in accounts payable. The reduction suggests a moderation in payment speed, possibly due to strategic cash flow management or external financial pressures.

Overall Analysis

The combination of increasing accounts payable and decreasing payables turnover ratio signals a growing reliance on creditor financing or extended payment terms. Meanwhile, the cost of sales shows variability but with significant spikes and troughs, which may reflect changes in production volume, pricing, or supply chain dynamics. The trends suggest that cash management and vendor relationships are critical areas to monitor closely.

The financial data reveals distinct trends and fluctuations across the analyzed periods, particularly in working capital, net revenue, and working capital turnover ratios.

Working Capital

Working capital shows notable variability throughout the timeline. It initially increases from 17,606 million USD in March 2020 to a peak near 31,732 million USD in September 2021. After this peak, there is a general downward trend, with values declining steadily to 9,960 million USD by September 2024. This decline continues slightly through December 2024 and March 2025, indicating a tightening of current assets relative to current liabilities near the end of the period.

Net Revenue

Net revenue exhibits a downward trajectory overall. Starting at 19,828 million USD in March 2020, the figures fluctuate with minor rises and falls but maintain a mostly descending path, reaching 12,667 million USD by March 2025. Significant decreases occur in the periods from early 2022 through mid-2023 with occasional rebounds in mid to late 2023 and early 2024. The overall trend points toward diminishing sales or operational revenue over the extended timeframe.

Working Capital Turnover Ratio

The working capital turnover ratio, representing the efficiency in utilizing working capital to generate revenue, shows variability with periods of notable increases and decreases. Starting with values around 3.46 to 3.59 in fiscal 2020 and 2021, the ratio dips to approximately 2.34-2.61 in 2022, indicating less efficient use of working capital in that period. However, a recovery phase appears in late 2022 and into 2023 with values ascending back above 3.3 and even reaching above 4.9 by early 2025. This rising trend despite declining working capital and revenue may suggest improved operational efficiency or changes in asset management practices.

In summary, the company experienced a contraction in working capital and net revenue over the observed periods, highlighted by a peak mid-way and subsequent declines. Nevertheless, the improvement in the working capital turnover ratio toward the end implies enhanced utilization of available capital resources, potentially mitigating some effects of reduced revenue and liquidity.

Inventory Turnover

The inventory turnover ratio shows a decreasing trend from the period ending March 27, 2021, through March 29, 2025. Initially, the ratio was recorded at 4.06 and rose slightly to 4.15 by June 26, 2021. Subsequently, there is a consistent decline over the following quarters, reaching a low around 2.68 by April 1, 2023. After that, the ratio experiences minor fluctuations, generally stabilizing between 2.74 and 2.95 in the most recent quarters up to March 29, 2025. This trend suggests a gradual reduction in the frequency with which the company sells and replaces its inventory over this time frame.

Average Inventory Processing Period

The average inventory processing period, measured in number of days, exhibits an inverse pattern to the inventory turnover ratio. Starting at 90 days as of March 27, 2021, it rises steadily to a peak of 136 days at April 1, 2023. Following this, the period slightly decreases but remains elevated relative to the initial periods, fluctuating mostly in the range of 124 to 133 days through March 29, 2025. This indicates that inventory is held for longer durations before being sold or processed, consistent with the declining inventory turnover.

Overall Insights

The patterns observed reflect a slower inventory movement over the reported periods. The increasing average processing days alongside the declining turnover ratio point to potential challenges in inventory management efficiency or changing market demand dynamics. This could have implications for working capital utilization and may require strategic attention to optimize inventory levels and improve turnover in future periods.

The receivables turnover ratio exhibits a fluctuating trend over the observed periods, starting at 11.48 and then gradually decreasing to a low of 8.36 before rising again to peak at 18.59. After this peak, it experiences a general decline with some moderate recovery towards the end of the timeline, settling around 17.31. This suggests variability in the efficiency of the company’s receivables management, with periods of both improvement and weakening in turnover performance.

Correspondingly, the average receivable collection period follows an inverse pattern relative to the receivables turnover ratio, as would typically be expected. Initially, the number of days required to collect receivables increased from 32 to 44 days, indicating slower collection processes. Subsequently, there is a notable reduction in the collection period down to around 20 days, reflecting enhanced efficiency in receivables collection.

Receivables Turnover Ratio Trends

Following a period of decline from 11.48 to 8.36, the ratio improved significantly from 10.98 to a peak of 18.59, indicating an increase in receivables turnover efficiency. This was followed by some fluctuations and slight tapering off, suggesting some challenges in maintaining the highest efficiency levels consistently.

Average Receivable Collection Period Trends

The collection period lengthened from 32 to 44 days initially, reflecting slower collection efficiency. After this peak, the period shortened steadily to approximately 20 days, signaling improvements made in accelerating the collection processes.

Relationship Between Metrics

The inverse relationship between the receivables turnover ratio and the collection period is clearly evidenced in the data. When the turnover ratio increased, the collection period decreased, and vice versa, confirming typical financial behavior linked to accounts receivable management efficiency.

Overall Insights

The data points to periods of both weakening and strengthening in the company’s receivables handling. The improvements in collection days and increases in turnover ratio later in the timeline suggest management initiatives or external factors positively impacting receivables management in the most recent quarters.

Average Inventory Processing Period

The average inventory processing period experienced a consistent upward trend from March 2021 through April 2023, starting around 90 days and increasing steadily to a peak of 136 days. From mid-2023 onward, the period fluctuated slightly but generally showed a gradual decline, stabilizing around 124-130 days by early 2025. This pattern suggests initial inventory buildup or slower turnover followed by modest improvements or stabilization.

Average Receivable Collection Period

The average receivable collection period demonstrated more volatility compared to inventory processing. It rose from 32 days in March 2021 to a peak near 44 days by April 2022, indicating slower collections during this interval. Afterward, a sharp decline occurred, bringing the collection period down to a low of about 20 days between October 2022 and September 2023. The period then oscillated mildly, remaining in the low to mid-20 day range through early 2025. These fluctuations reflect varying efficiency in receivables management, with a notable improvement in collections in late 2022 and 2023.

Operating Cycle

The operating cycle, which combines inventory processing and receivable collection periods, mirrored the trends observed in the individual components. From March 2021, it increased steadily from approximately 122 days to a high near 165 days by the end of 2022, reflecting lengthening cash conversion duration. Subsequently, it decreased and fluctuated moderately around 145 to 152 days across 2023 and into early 2025, indicating some recovery in operational efficiency but maintaining a longer cycle relative to the early 2021 period.

Overall Insights

The data reveals a period of operational lengthening through 2021 and 2022, driven principally by increased inventory holding times and slower receivable collections. Beginning in late 2022 and continuing through 2023 into 2025, both inventory and receivable periods show signs of improvement or stabilization, leading to a shortening or leveling of the operating cycle. These trends suggest that initial supply chain or demand challenges may have impacted operational efficiency, followed by a strategic or market-driven adjustment to better manage inventory and receivables in subsequent periods.

The analysis of the payables turnover ratio and average payables payment period over the observed quarterly periods reveals notable trends in the company's management of its payables.

Payables Turnover Ratio

The payables turnover ratio initially recorded a peak value of 6.49 in June 2021, followed by a general downward trend through subsequent periods. The ratio decreased to a low point of 2.85 in September 2024 before experiencing a slight recovery to 3.33 by March 2025. This decline suggests a lengthening in the time the company takes to pay off its suppliers or a possible change in procurement or payment policies.

Average Payables Payment Period

Corresponding to the decreasing payables turnover ratio, the average payables payment period shows an increasing trend. From 56 days in June 2021, the payment period extended steadily to 128 days in September 2024, indicating that on average, the company took longer to settle its payables. By March 2025, this period slightly reduced to 110 days.

Overall Interpretation

The inverse relationship between the payables turnover ratio and the average payment period is consistent with expectations: as the company extends its payment terms, turnover decreases. The increasing payment period delays cash outflows related to payables, potentially improving short-term liquidity but possibly impacting supplier relationships. The small uptick in turnover ratio and reduction in payment period near the end of the timeline may suggest a strategic adjustment towards quicker payables settlement.

The data reveals distinct trends in the company's working capital management over multiple quarterly periods.

Average Inventory Processing Period

This metric shows a gradual upward trend, starting around 90 days and rising to a peak of approximately 136 days in the period ending April 1, 2023. Subsequently, it exhibits a moderate decline toward recent periods, stabilizing near 124-130 days. The increase indicates a lengthening duration of inventory turnover, which could imply slower inventory movement or changes in inventory management policies.

Average Receivable Collection Period

The receivable collection period displays fluctuations but generally trends downward from around 44 days at its peak in December 25, 2021, to lower figures near 20-24 days in recent quarters. This shortening suggests improving efficiency in collecting receivables, enhancing cash flow timing.

Average Payables Payment Period

The payables payment period demonstrates considerable variability with a general increasing pattern. Beginning from approximately 56 days, it climbs to over 128 days by late 2024, before slightly decreasing to around 110 days. This elongation indicates the company is taking longer to settle its payables, potentially improving short-term liquidity but possibly reflecting extended credit terms with suppliers.

Cash Conversion Cycle (CCC)

The cash conversion cycle fluctuates significantly, initially increasing and then showing a marked reduction over time. It peaks near 96 days before declining steadily to about 21 days in September 28, 2024, representing a substantial improvement in the company's working capital efficiency. A declining CCC illustrates faster conversion of investments in inventory and receivables into cash, benefiting operational cash flow.

Overall, the company appears to be managing its receivables and payables to optimize cash flow, as indicated by the reduced receivable collection period and extended payables period. However, the inventory turnover period's lengthening warrants further attention, as slower inventory processing may tie up capital and affect liquidity. The significant decrease in the cash conversion cycle in recent periods suggests enhanced overall efficiency in working capital management.