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Intel ROIC %

: -0.99% (As of Jun. 2022)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Intel's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2022 was -0.99%.

As of today (2022-08-11), Intel's WACC % is 4.67%. Intel's ROIC % is 9.87% (calculated using TTM income statement data). Intel generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Intel ROIC % Historical Data

The historical data trend for Intel's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Intel Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.14 20.45 18.05 17.67 17.28

Intel Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.67 18.44 15.07 8.67 -0.99

Competitive Comparison

For the Semiconductors subindustry, Intel's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Intel ROIC % Distribution

For the Semiconductors industry and Technology sector, Intel's ROIC % distribution charts can be found below:

* The bar in red indicates where Intel's ROIC % falls into.



Intel ROIC % Calculation

Intel's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

ROIC % (A: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2020 ) + Invested Capital (A: Dec. 2021 ))/ count )
=22082 * ( 1 - 8.46% )/( (112345 + 121657)/ 2 )
=20213.8628/117001
=17.28 %

where

Intel's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2022 is calculated as:

ROIC % (Q: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Jun. 2022 ))/ count )
=-2452 * ( 1 - 50.06% )/( (120978 + 125442)/ 2 )
=-1224.5288/123210
=-0.99 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2022) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Intel  (NAS:INTC) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Intel's WACC % is 4.67%. Intel's ROIC % is 9.87% (calculated using TTM income statement data). Intel generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases. Intel earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Intel ROIC % Related Terms

Thank you for viewing the detailed overview of Intel's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Intel Business Description

Intel logo
Address
2200 Mission College Boulevard, Santa Clara, CA, USA, 95054-1549
Intel is the world's largest logic chipmaker. It designs and manufactures microprocessors for the global personal computer and data center markets. Intel pioneered the x86 architecture for microprocessors. It was the prime proponent of Moore's law for advances in semiconductor manufacturing, though the firm has recently faced manufacturing delays. While Intel's server processor business has benefited from the shift to the cloud, the firm has also been expanding into new adjacencies as the personal computer market has stagnated. These include areas such as the Internet of Things, artificial intelligence, and automotive. Intel has been active on the merger and acquisitions front, acquiring Altera, Mobileye, and Habana Labs in order to bolster these efforts in non-PC arenas.
Executives
Holthaus Michelle Johnston officer: EVP & GM, CCG 1400 FOUNTAINGROVE PARKWAY SANTA ROSA CA 95403
Schell Christoph officer: EVP; Chief Cml Ofcr; GM, SMG 1501 PAGE MILL ROAD PALO ALTO CA 94304
Zinsner David officer: EVP, CFO 1001 MURPHY RANCH ROAD MILPITAS CA 95035
Goldsmith Andrea Jo director 1220 AUGUSTA DRIVE SUITE 600 HOUSTON TX 77057
Rivera Sandra L officer: EVP & GM, Datacenter and AI ONE LAGOON DRIVE REDWOOD CITY CA 94065
Smith Gregory D director 100 N RIVERSIDE PLAZA M/C 3005-1001 CHICAGO IL 60606-1596
Yeary Frank D director C/O INTEL CORPORATION 2200 MISSION COLLEGE BLVD., RN4-151 SANTA CLARA CA 95054
Weisler Dion J director C/O HP INC. 1501 PAGE MILL RD PALO ALTO CA 94304
Henry Alyssa director 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Goetz James J director C/O SEQUOIA CAPITAL 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Bryant Gregory M officer: EVP, GM, CCG 2200 MISSION COLLEGE BLVD SANTA CLARA CA 95054
Davis George S officer: Chief Financial Officer C/O APPLIED MATERIALS, INC. 3050 BOWERS AVENUE P.O. BOX 58039 SANTA CLARA CA 95052
Underwood Todd M officer: Interim CFO 2200 MISSION COLLEGE BLVD SANTA CLARA CA 95054
Rodgers Steven Ralph officer: EVP General Counsel 2200 MISSION COLLEGE BLVD. ROSEVILLE CA 95054
Lavizzo-mourey Risa J director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210

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