Intel Corp. (NASDAQ:INTC)

Inventory Turnover

The inventory turnover ratio has exhibited a generally declining trend from 4.15 in early 2021 to a low point around 2.68-2.74 in 2023, indicating slower inventory movement over the period. However, from late 2023 through mid-2025, the ratio shows a modest recovery, peaking at 3.28 before slightly decreasing to 3.00, suggesting some improvement in inventory management efficiency in recent quarters.

Receivables Turnover

Receivables turnover shows variability but an overall upward trajectory from 10.78 in March 2021 to a high of 22.49 in late 2024. This implies enhanced effectiveness in collecting receivables over time. Notably, turnover sharply increased after early 2022, despite some interim fluctuations, indicating improved credit control or faster collection processes.

Payables Turnover

The payables turnover ratio generally declined from 6.49 in early 2021 to around 3.35-3.49 in mid-2025, suggesting the company is taking longer to pay its suppliers. There are periods of slight fluctuation, but the trend points to lengthening payment cycles, which might be a strategy to manage cash flow or a reflection of supplier terms changes.

Working Capital Turnover

Working capital turnover exhibited a decline from 3.59 in March 2021 to a low of approximately 2.34 in early 2022, followed by a considerable recovery and increase peaking at 6.31 in mid-2025. This pattern indicates progressively better utilization of working capital, especially in recent quarters, which could reflect improved operational efficiency or better sales relative to working capital invested.

Average Inventory Processing Period

The average inventory processing period has steadily increased from 88 days in early 2021 to a peak exceeding 130 days in 2023, implying longer inventory holding times. A subsequent gradual decline toward 111 days in mid-2025 reflects some improvement in inventory turnover speed but remains elevated compared to earlier periods.

Average Receivable Collection Period

This period decreased from 34 days early in 2021 to a low of 16 days in late 2024, indicating faster collection of receivables over time. There is notable improvement in efficiency, particularly from mid-2022 onwards. Slight increases occur intermittently but do not override the overall positive trend.

Operating Cycle

The operating cycle has lengthened from 122 days in early 2021 to a peak of 165 days in late 2022, largely driven by inventory holding increases despite improvements in receivables collection. From then on, it stabilizes and even shortens to around 127 days in late 2024 before rising slightly again, indicating some variability but generally extended operational duration compared to the start of the period.

Average Payables Payment Period

The average payables payment period has increased significantly from 56 days in early 2021 to above 100 days in late 2024 and mid-2025. This upward trajectory suggests the company is delaying payments to suppliers more over time, which may be a cash management tactic but could also affect supplier relationships.

Cash Conversion Cycle

The cash conversion cycle shows a fluctuating but generally declining trend from 66 days in early 2021 to a low of 21 days in late 2024, indicating improved cash flow efficiency. Despite some increases afterward, the cycle remains shorter than in the early years, reflecting more efficient management of the time lag between cash outflow and inflow.

Cost of Sales

The cost of sales exhibits fluctuations over the periods analyzed. Initially, it decreased slightly from the first quarter of 2021 to the third quarter of 2021, followed by an increase in the fourth quarter of 2021. Through 2022, the cost of sales showed variability with no consistent upward or downward trend. In 2023, a general decline was noted until a noticeable rise in the third quarter, followed by some oscillations. The first quarter of 2024 saw a reduction, but the third quarter of 2024 experienced a significant spike. The last periods demonstrated alternating decreases and increases without a clear directional pattern.

Inventories

Inventories have displayed a steady upward trend from March 2021 through the last quarter of 2022, increasing consistently each quarter. This upward movement peaked around the end of 2022 and early 2023. Subsequently, inventories began to decline gradually across 2023 and into early 2024, suggesting a drawdown or better inventory management. However, starting in mid-2024, inventories stabilized with minor fluctuations around a higher level than earlier periods. The latest data points indicate a slight decrease, but overall inventories remain elevated compared to the start of the timeframe.

Inventory Turnover Ratio

The inventory turnover ratio generally declined from early 2021 through 2023, reaching its lowest points in early 2023. This suggests that the company was turning over inventory less frequently during this interval, potentially indicating slower sales or overstocking. However, from mid-2023 onwards, the turnover ratio shows a modest recovery with gradual increases, peaking somewhat in early 2025. Despite this improvement, the ratio remains below the levels observed at the start of the analysis period, implying that turnover efficiency has not fully returned to prior levels.

Summary

The analysis reveals that while inventories have generally increased over the entire period, the cost of sales has experienced considerable volatility without a clear long-term trend. The declining inventory turnover ratio early on corresponds with rising inventory levels, indicating a potential buildup of stock relative to sales. Recent improvements in turnover ratio alongside some stabilization in inventory levels suggest efforts to optimize inventory management may be yielding results. Nonetheless, spikes in cost of sales and fluctuations in inventories during the later periods warrant continued monitoring to ensure alignment with operational and financial objectives.

The financial data reflect several notable trends regarding net revenue, accounts receivable, and receivables turnover ratios over the observed periods.

Net Revenue

Net revenue exhibits a generally declining trend from early 2021 through mid-2023, starting at approximately 19,673 million US dollars and decreasing to around 11,715 million by April 2023. Following this low, there is a moderate recovery, with revenue increasing to 15,406 million by December 2023. However, net revenue declines again into mid-2024, then shows a gradual upward movement towards the end of 2025, reaching approximately 13,653 million. The fluctuations suggest periods of contraction and partial recovery, with no consistent upward trajectory throughout the timeframe.

Accounts Receivable, Net

Accounts receivable net values present high variability. Initially, they rise from 7,208 million in March 2021 to a peak of 9,457 million by December 2021, indicating increased sales on credit or slower collections. Subsequently, a sharp reduction occurs, dropping to around 2,843 million by December 2023. Post-2023 values fluctuate but remain generally low compared to the earlier peak, ending near 3,202 million in September 2025. This pattern may reflect improving collection efficiency or adjustments in credit policies following the high receivable levels.

Receivables Turnover Ratio

The receivables turnover ratio inversely correlates with accounts receivable trends, starting at 10.78 in March 2021 and declining to a low of 8.36 by December 2021, coinciding with the rise in receivables balances. Thereafter, the ratio increases significantly, peaking at 22.49 in June 2025, indicating an accelerated collection process or possibly reduced credit sales. The generally increasing turnover after late 2021 suggests improvements in cash flow management and credit control effectiveness.

In summary, the data reveal a period of revenue contraction accompanied by rising accounts receivable and falling turnover ratios through 2021, followed by recovery efforts in subsequent quarters reflected by decreasing receivables and increasing turnover. Despite fluctuations in net revenue, the enhanced receivables turnover in later periods may denote improved collection efficiency and tighter credit management. However, the ongoing volatility in revenue highlights market or operational challenges affecting consistent growth.

The analysis of the financial data reveals several notable trends concerning cost of sales, accounts payable, and payables turnover over multiple quarters.

Cost of Sales

The cost of sales shows considerable fluctuation across the periods. Initially, it declines from US$8,819 million in March 2021 to US$8,425 million in June 2021, then remains relatively stable around the mid-8,000 million range through September 2021. It peaks at US$9,734 million in July 2022 before generally trending downward to US$7,507 million by March 2024. However, a sharp increase to US$11,287 million occurs by September 2024, followed by a decrease again. This pattern indicates periods of varying production or procurement expenses, with some volatility apparent especially in the later quarters.

Accounts Payable

Accounts payable exhibit an overall rising trajectory throughout the observed timeline. Starting from US$5,434 million in March 2021, it increases steadily with occasional sharper rises, reaching US$7,945 million by July 2022, and continuing upward to a peak of US$12,556 million in December 2024. Thereafter, it slightly declines but remains elevated above prior years' levels. This growth suggests increased liabilities to suppliers, potentially reflective of higher procurement or extended payment terms.

Payables Turnover Ratio

The payables turnover ratio declines distinctly over the period under review. Initially high at 6.49 in March 2021, it decreases progressively with intermittent small recoveries, falling below 4.0 starting from late 2022, and reaching a low of approximately 2.85 by December 2024. This downward trend implies a lengthening of the payment cycle to suppliers, meaning the company is taking more time to settle its payables relative to its cost of sales.

In summary, the data depict a scenario where the company is managing cost of sales with some variability, while accounts payable have increased significantly, and the payables turnover ratio has declined notably. This combination points to an extended period in accounts payable turnover, indicating a strategic or operational shift in managing supplier payments, which could impact cash flow and supplier relationships. The sharp fluctuations in cost of sales during late 2024 further suggest potential changes in production volume, pricing, or inventory management during that time frame.

Working Capital

The working capital exhibited notable fluctuations over the reported periods. Initially, it increased from 21,622 million USD to a peak of 33,246 million USD by April 2, 2022, indicating a buildup of short-term assets over liabilities. After this peak, there was a pronounced decline, reaching a low point of 8,409 million USD by June 28, 2025. Towards the end of the timeline, a recovery is observed with an increase back to 19,434 million USD by September 27, 2025. This pattern suggests variability in the management of operational liquidity, with periods of both aggressive asset buildup and subsequent reduction.

Net Revenue

Net revenue demonstrated a general downward trend from the start to mid-series, decreasing from approximately 19,673 million USD in March 2021 to a trough of around 11,715 million USD in April 2023. This decline reflects a contraction in sales or service income during this period. However, after this low point, net revenue showed a consistent recovery trend, rising to about 13,653 million USD by September 2025. Despite this recovery, revenue levels towards the end remain below the initial high values, indicating incomplete rebound to previous peak sales figures.

Working Capital Turnover Ratio

The working capital turnover ratio, which measures net revenue relative to working capital, displayed considerable variability. It started at 3.59, declined to a low of 2.34 by April 2022, then rose steadily to reach a peak of 6.31 by June 2025. This increase signals improved efficiency in utilizing working capital to generate revenue in the latter periods. Notably, the peak turnover corresponds to periods of lowered working capital balances, suggesting tighter asset management or leaner working capital usage yielding higher revenue per unit of capital employed. However, the ratio dropped to 2.75 by September 2025, indicative of a potential recent decrease in operational efficiency or changes in working capital dynamics.

Overall Trends and Insights

The data portrays a cycle of expansion and contraction in both working capital and net revenue, with working capital reaches high levels early in the observed timeline before significant reduction. Net revenue experienced a decline followed by a moderate recovery. The working capital turnover ratio's upward trajectory in the middle to later periods indicates an improvement in capital efficiency, although some volatility near the end suggests operational or market uncertainties. The interplay of decreasing working capital and recovering revenue resulted in peak turnover ratios, reflecting strategic adjustments in capital management to sustain revenue generation amid fluctuating market conditions.

The analysis of the inventory turnover ratio and average inventory processing period over the presented quarters reveals notable trends in inventory management efficiency. The inventory turnover ratio exhibits a declining trend from early 2021 through early 2023, dropping from 4.15 to around 2.68. This decline indicates a decreasing frequency at which inventory is sold and replaced, suggesting slower inventory movement during this period.

Concurrently, the average inventory processing period, measured in days, increases from 88 days in the first quarter of 2021 to a peak of approximately 136 days by early 2023. This reflects a longer holding period of inventory, consistent with the observed reduction in inventory turnover.

From mid-2023 onwards, the inventory turnover ratio shows gradual improvement, increasing from about 2.78 to a high of 3.28 by mid-2025 before a slight decline to 3.00 at the end of the period. This improvement suggests a recovery in the efficiency of inventory turnover. Correspondingly, the average inventory processing period decreases from its peak, dropping to 111 days mid-2025, before experiencing a minor rise towards the latest quarter.

Overall, the data indicates a phase of declining inventory efficiency and longer holding periods up to early 2023, followed by a recovery phase marked by improved turnover and reduced processing days. However, the figures in the latter quarters do not return to the initial efficiency levels observed at the start of 2021, signaling an ongoing adjustment in inventory management practices.

Inventory Turnover Ratio

Decreased significantly from 4.15 to a low near 2.68 between 2021 and early 2023, then gradually increased to around 3.28 by mid-2025 with slight fluctuation towards the end.

Average Inventory Processing Period

Increased steadily from 88 days to a peak of 136 days by early 2023, followed by a decline to 111 days at mid-2025, ending with a slight increase near 122 days.

The analysis of the quarterly financial ratios over the observed periods reveals significant fluctuations and overall improvements in the management of receivables.

Receivables Turnover Ratio

The receivables turnover ratio exhibits considerable variability throughout the timeframe. Initially, the ratio decreases from 10.78 to a low point of 8.36, indicating a slowdown in the rate of receivables collection. Subsequently, this ratio improves sharply, reaching a peak of 22.49. This peak suggests a much faster conversion of receivables into cash, indicative of enhanced collection efficiency. However, there are intermittent declines after this peak, showing that while the trend is generally positive, some inconsistencies remain.

Average Receivable Collection Period

The average receivable collection period, which inversely correlates with the turnover ratio, follows an expected pattern. It initially increases from 34 days to a high of 44 days, signifying a lengthening in the duration needed to collect receivables. Following this peak, a marked reduction occurs, dropping to as low as 16 days, reflecting improved collection speed. Minor fluctuations appear thereafter but the general trend points to a more efficient receivables process over time.

Overall, the data indicate that after a period of declining efficiency in receivables management, substantial improvements were made, culminating in higher turnover ratios and shorter collection periods. These changes suggest enhanced liquidity and potentially stronger cash flow positions in the later periods. Nonetheless, occasional variability implies that maintaining consistent receivables performance could be an area for ongoing focus.

The analysis of the financial metrics over the presented periods reveals several key trends in inventory management, receivables collection, and the overall operating cycle.

Average Inventory Processing Period

The average inventory processing period showed a generally increasing trend from 88 days in March 2021 to a peak of 136 days in April 2023, indicating a lengthening time to process inventory. Following this peak, there was a slight improvement as the period decreased to 125 days by December 2023. However, fluctuations persisted with days ranging between 124 and 130 until June 2024, concluding with a decrease to 111 days in September 2025 before a minor uptick to 122 days in the last recorded period. This pattern suggests some variability in inventory turnover efficiency but an overall trend toward longer processing times initially, with some stabilization and moderate improvement in later periods.

Average Receivable Collection Period

The receivable collection period displayed greater volatility with an initial rise from 34 days in March 2021 to a high of 44 days in December 2021, followed by a significant decline to 20 days by July 2023. Subsequently, this period maintained relatively low levels around the low twenties, dropping to a minimum of 16 days in September 2025 before a slight increase to 22 days at the end of the dataset. The trend indicates improved receivables management over time, resulting in faster collection cycles and potentially enhanced cash flows.

Operating Cycle

The operating cycle, which combines inventory processing and receivable collection periods, lengthened from 122 days in March 2021 to its peak of 165 days in October 2022. Despite some reductions afterward, the operating cycle remained elevated above its initial levels, fluctuating between 145 and 161 days through early 2024. A notable decrease to 127 days occurred in September 2025, followed by a modest increase to 144 days in the latest period. This reflects the interplay of the two components: initially prolonged processing time and receivables collection which subsequently improved, resulting in a somewhat shorter operating cycle in the latest periods.

In summary, the observed data indicate initial challenges with inventory turnover and receivable collection extending the operating cycle, followed by a trend toward better receivables management and moderate improvements in inventory processing times. These changes suggest efforts to optimize working capital have had some success, reducing the length of the operating cycle after a period of significant extension.

Payables Turnover Ratio

The payables turnover ratio exhibits an overall declining trend from March 2021 through September 2025. Starting at 6.49 in March 2021, the ratio decreases with some fluctuation, reaching lower levels below 4.0 by the end of 2022. It remains relatively stable but low around the range of 3.2 to 3.8 through 2023 and into 2025, with a slight uptick observed during some quarters in 2025 but not returning to earlier high values.

Average Payables Payment Period

This metric shows an increasing trend over the same period. Beginning at 56 days in March 2021, the average payment period lengthens considerably throughout the years, surpassing 100 days by late 2024 and remaining above 100 days through mid to late 2025. Occasional short-term fluctuations occur, but the general pattern indicates a steady expansion in the number of days taken to settle payables.

Insights

The inverse relationship between the payables turnover ratio and the average payment period suggests that the company is gradually extending its payment terms to suppliers. The reduction in turnover ratio indicates fewer payables are being paid within the period relative to purchases, while the increased payment period reflects longer intervals before settling accounts. This behavior may indicate strategic cash management efforts to optimize working capital or could suggest cash flow constraints requiring extended payment durations. The persistence of these trends over multiple years points to a stable policy or ongoing operational conditions influencing payables management.

The analysis of the financial time series data reveals several noteworthy trends and fluctuations in the company's operational efficiency as measured by the inventory processing period, receivable collection period, payables payment period, and the resultant cash conversion cycle over multiple quarters.

Average Inventory Processing Period

The average inventory processing period shows an overall upward trend from 88 days in early 2021 to a peak of 136 days in early 2023. Following this peak, there is a gradual decline with minor fluctuations, reaching 111 days in the third quarter of 2025, before slightly increasing to 122 days by the end of that period. This pattern suggests a lengthening in the time inventory is held initially, followed by efforts to improve inventory turnover efficiency in the later periods.

Average Receivable Collection Period

This metric exhibits volatility but with a general downward trajectory over the observed periods. Starting at 34 days in early 2021, the collection period fluctuates significantly, peaking at 44 days late in 2021, then mostly declining to a low of 16 days by the third quarter of 2025. The decreasing trend indicates an improvement in the speed of receivables collection, enhancing liquidity management.

Average Payables Payment Period

The payables payment period reveals considerable variability. Beginning at 56 days, it rises and falls across quarters, hitting a high of 128 days in the third quarter of 2024 before decreasing somewhat to 109 days by late 2025. The extended payment periods in certain quarters imply strategic negotiations or cash flow management tactics aimed at stretching out payables without jeopardizing supplier relationships.

Cash Conversion Cycle

The cash conversion cycle (CCC) demonstrates a more complex pattern. Initially stable around the mid-60 days mark in 2021, it spikes to 96 days late in 2021 and shows further variability through early 2023, where it returns to approximately 60 days. Subsequently, the CCC declines more markedly to a low of 21 days in the third quarter of 2024, suggesting marked improvements in working capital management. However, it oscillates thereafter, ending at 35 days by mid-2025. These changes reflect the combined effects of inventory, receivables, and payables dynamics, with more recent quarters indicating enhanced operational efficiency and shorter cash cycle times.