Intel Corp. (NASDAQ:INTC)

A consistent downward trend is observed across all three investment activity ratios – Net Fixed Asset Turnover, Total Asset Turnover, and Equity Turnover – throughout the analyzed period spanning from April 2022 to December 2025. This suggests a declining efficiency in utilizing assets to generate revenue. The rate of decline appears to moderate towards the end of the period, but the overall direction remains negative.

Net Fixed Asset Turnover

This ratio demonstrates a steady decrease from 1.16 in April 2022 to 0.50 in December 2025. The most significant decline occurred between April 2022 and December 2022, falling from 1.16 to 0.78. Subsequent decreases are more gradual, with a slight uptick to 0.51 in September 2025 before returning to 0.50. This indicates a diminishing ability to generate sales from fixed assets.

Total Asset Turnover

The Total Asset Turnover ratio exhibits a similar pattern of decline, moving from 0.44 in April 2022 to 0.25 in December 2025. The largest drop is again observed in the initial period, decreasing to 0.35 by December 2022. The rate of decline slows down in later periods, with values stabilizing around 0.27-0.29 between September 2023 and March 2024. This suggests a decreasing efficiency in utilizing all assets, both fixed and current, to generate revenue.

Equity Turnover

Equity Turnover also follows the general downward trend, decreasing from 0.75 in April 2022 to 0.46 in December 2025. The decline is relatively consistent throughout the period, although a slight increase to 0.55 is noted in June 2024. This indicates that the company is generating less revenue for each dollar of equity invested.

The concurrent declines in all three ratios suggest a systemic issue related to asset utilization and revenue generation. Further investigation is warranted to determine the underlying causes, such as decreased sales, increased asset base, or changes in industry dynamics. The stabilization observed in the latter part of the period may indicate the implementation of corrective measures, but continued monitoring is necessary to assess their effectiveness.

A consistent downward trend is observed in the net fixed asset turnover ratio over the analyzed period, spanning from April 2022 to December 2025. This indicates a decreasing efficiency in generating net revenue from the company’s fixed assets. Initially, the ratio stood at 1.16, but progressively declined to 0.50 by the end of the observation window.

Overall Trend

The ratio demonstrates a clear and sustained decline. The rate of decrease appears to be accelerating, particularly from the first half of 2023 through 2025. While the ratio remains positive, the diminishing value suggests the company is becoming less effective at utilizing its fixed assets to generate sales.

Revenue Impact

Net revenue experienced fluctuations throughout the period, but generally decreased from US$18,353 million in April 2022 to US$13,674 million in December 2025. This revenue decline contributes to the decreasing net fixed asset turnover, as the denominator (fixed assets) consistently increased.

Fixed Asset Investment

Property, plant, and equipment, net of accumulated depreciation, consistently increased from US$66,718 million in April 2022 to US$105,414 million in December 2025. This ongoing investment in fixed assets, coupled with the declining revenue, directly contributes to the observed reduction in the net fixed asset turnover ratio. The company is investing more in fixed assets while generating less revenue from them.

Recent Performance

The most recent quarterly values (September 2025 and December 2025) show a slight stabilization in the ratio, hovering around 0.51 and 0.50 respectively. However, this stabilization occurs at a significantly lower level than observed earlier in the period, and does not indicate a reversal of the overall downward trend.

In summary, the declining net fixed asset turnover ratio, in conjunction with increasing fixed asset investment and fluctuating revenue, suggests a potential need to evaluate the efficiency of asset utilization and the effectiveness of capital expenditure decisions.

The total asset turnover ratio demonstrates a consistent downward trend over the observed period, spanning from April 2022 to December 2025. Initially, the ratio fluctuated between 0.44 and 0.40, but subsequently exhibited a more pronounced decline, ultimately reaching 0.25 by the end of the analyzed timeframe.

Initial Phase (Apr 2, 2022 – Dec 31, 2022)

The ratio began at 0.44 and decreased to 0.35 over this period. While a decline is present, the values remain relatively high, suggesting efficient asset utilization compared to later periods. The decrease could be attributed to fluctuations in net revenue alongside relatively stable total asset values.

Transitional Phase (Apr 1, 2023 – Sep 30, 2023)

This phase shows a continuation of the downward trend, with the ratio falling from 0.30 to 0.28. The decline appears to be moderating, but still indicates a decreasing ability to generate revenue from existing assets. Both net revenue and total assets experienced increases during this period, but revenue growth did not keep pace with asset growth.

Accelerated Decline (Dec 30, 2023 – Dec 27, 2025)

The most significant decrease in the ratio occurs during this period, dropping from 0.28 to 0.25. This suggests a weakening relationship between asset levels and revenue generation. Total assets increased substantially, while net revenue remained relatively stable or experienced modest growth, contributing to the lower turnover ratio. The ratio consistently remained below 0.30 throughout this phase.

Overall, the observed trend suggests a diminishing efficiency in utilizing assets to generate revenue. The company appears to be requiring a larger asset base to produce a similar level of revenue over time. Further investigation into the drivers of asset growth and revenue fluctuations is warranted to understand the underlying causes of this trend.

The equity turnover ratio demonstrates a consistent downward trend over the observed period, spanning from April 2022 to December 2025. Initially, the ratio stood at 0.75, but it progressively declined, reaching 0.46 by the final period. This indicates a decreasing efficiency in generating revenue from the company’s stockholders’ equity.

Overall Trend

A clear and sustained decline in equity turnover is evident. The ratio decreased from 0.75 in April 2022 to 0.46 in December 2025, representing a roughly 39% reduction over the period. This suggests the company is becoming less effective at utilizing equity to generate sales.

Phases of Decline

The rate of decline was not uniform. A steeper decrease occurred between April 2022 and December 2023, falling from 0.75 to 0.51. The decline moderated somewhat between December 2023 and June 2025, fluctuating between 0.48 and 0.55, before resuming a more pronounced decrease to 0.46 in the final period.

Recent Performance

The most recent quarterly values show continued weakness. The ratio moved from 0.50 in September 2025 to 0.46 in December 2025. This suggests the downward trend is ongoing and has not yet stabilized.

Relationship to Revenue

While net revenue experienced fluctuations throughout the period, it did not consistently offset the decline in equity turnover. Revenue increased in some quarters, such as from September to December 2023, but the equity turnover ratio continued to decrease, indicating that increases in revenue were not sufficient to maintain the ratio’s level.

Equity Fluctuations

Total stockholders’ equity also exhibited variability. While generally remaining within a range of approximately US$97.8 billion to US$115.2 billion, the changes in equity do not fully explain the observed decline in equity turnover. The ratio’s decrease suggests that revenue generation is not keeping pace with equity levels.

In conclusion, the observed trend in equity turnover suggests a diminishing ability to generate revenue relative to the amount of equity invested. Further investigation into the underlying drivers of this trend, such as asset utilization and profitability, would be warranted.