Revenue Analysis
INTC’s total revenue across the periods shows variability with the latest quarter (2023-12-31) recording $15.406 billion, a slight increase from $12.949 billion in 2023-06-30 but an increase from $11.715 billion reported on 2023-03-31. The operating revenue remains constant with total revenue, indicating all revenues are from core operations without any diversification detected in the earnings report.
Gross profit saw an increase over the year, reaching $7.047 billion in the latest quarter, which is significantly higher than the $4.638 billion and $4.008 billion seen in previous periods. This suggests improved efficiency in cost management relative to revenue generation.
Cost Management
Cost of revenue in the latest quarter was reported at $8.359 billion, showing a consistent trend with previous quarters where the figures were $8.311 billion and $7.707 billion. This reflects a stable cost in the production or service delivery processes relative to sales.
Operating expenses, which include research and development and selling, general, and administrative expenses have shown an increase, indicating ongoing investment in these areas. The latest cost reported was $5.604 billion for operating expense.
Total expenses for the latest reported period stand at $13.963 billion which is in line with INTC’s increasing trend in operational costs.
Profitability Analysis
The EBITDA of INTC has shown a significant recovery to about $5.568 billion in the latest period from a negative situation earlier in the year, hinting at improved overall earnings before interest, taxes, depreciation, and amortization. Operating Income also showed recovery, hitting $1.443 billion after previous losses.
Pretax income improved to $2.788 billion up from losses earlier in the year, which implies better control over operational profitability before taxes. Net Income too showed a remarkable recovery, standing at $2.669 billion in the latest quarter.
Cash Flow Indicators
Reconciled Depreciation for the latest quarter stood at $2.513 billion, achieving a steady increase which can be a good indicator of the level of investment INTC is placing on capital expenses needed for future growth. Interest Expense was $267 million in the latest period, reflecting consistent financial expenses related to borrowing.
Taxation
The tax rate for calculations was quite minimal at 0.04% on the 2023-12-31 report, which is significantly lower than the statutory 21% seen in other quarters possibly due to differing taxable income conditions. The tax provision was $128 million, which is considerably lower compared to drastic conditions in previous quarters.
Shareholder Metrics
Regarding shareholder metrics, the diluted EPS recorded was $0.63 on 2023-12-31, a significant improvement from negative figures in earlier periods. This rises from adverse scenarios faced earlier in the year, likely providing better shareholder value perception.
Conclusion
This analysis reveals a remarkable recovery for INTC towards the end of the year 2023 after broader challenges earlier on. The significant improvement in Net Income, accompanied by stable revenue and increasing EBITDA and gross profits, suggests effective measures in cost management and operational adjustments. If this trend continues, INTC might expect a stronger fiscal performance going forward. However, careful management of the operating expenses and continued innovation in product/service offerings are advised to sustain and enhance profitability.