Market Cap : 145.23 B | Enterprise Value : 150.13 B | PE Ratio : 7.57 | PB Ratio : 1.43 |
---|
NAS:INTC has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NAS:INTC has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
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.
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.
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'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
Invested Capital | (A: Dec. 2020 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 153091 | - | 18251 | - | ( 23895 | - | max(0, 24754 | - | 47249 | + | 23895 | )) |
= | 112345 |
Invested Capital | (A: Dec. 2021 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 168406 | - | 18336 | - | ( 28413 | - | max(0, 27462 | - | 57718 | + | 28413 | )) |
= | 121657 |
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
Invested Capital | (Q: Mar. 2022 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 176356 | - | 22132 | - | ( 38696 | - | max(0, 29322 | - | 62568 | + | 38696 | )) |
= | 120978 |
Invested Capital | (Q: Jun. 2022 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 170418 | - | 21606 | - | ( 27044 | - | max(0, 27218 | - | 50588 | + | 27044 | )) |
= | 125442 |
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.
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.
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.
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.
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 |
From GuruFocus
By Business Wire 03-31-2022
Other Sources
By Zacks 2022-03-15
By Fool 2022-03-24
By tipranks.com 2022-03-31
By Fool 2022-03-17
By Zacks 2022-03-11
By Zacks 2022-03-17
By tipranks.com 2022-03-28
By Zacks 2022-03-31
By Zacks 2022-03-15
By Zacks 2022-04-05
By Zacks 2022-03-29
By Zacks 2022-03-31
By Fool 2022-03-21
By Zacks 2022-03-25
By Zacks 2022-03-17