Intel Corporation: FY2024 Loss and Cash-Burn Analysis

Income-statement trends — Intel Corporation financial results#

Intel’s FY2024 results show a dramatic reversal: the company recorded a $18.76 billion net loss on $53.10 billion of revenue, down from a $1.69 billion profit a year earlier, and reported operating income of -$11.68 billion. Those headline numbers mark a sharp swing in profitability that compresses margins across the income statement and changes the financial arithmetic for the business. The dataset’s most recent market quote prices Intel at $23.86 with a market capitalization of $104.44 billion, underscoring how the market is valuing the firm while earnings have swung negative.

Quick takeaway (featured snippet)#

Intel reported $53.10B in FY2024 revenue and a $18.76B net loss; EBITDA fell to $1.20B, capex was $23.94B, and free cash flow was -$15.66B — a picture of high investment, compressed margins and negative free-cash generation.

According to the FY2024 income statement (filed 2025-01-31), revenue decreased -2.08% year-over-year from $54.23B (2023) to $53.10B (2024) (calculation: (53.10 - 54.23) / 54.23 = -2.08%). Gross profit fell from $21.71B to $17.34B, a -20.14% decline, squeezing gross margin to 32.67% in 2024 (17.34 / 53.10 = 32.67%). The deterioration in top-line and cost structure was amplified at the operating level: operating income moved from $0.09B in 2023 to - $11.68B in 2024, a structural swing that reflects operating losses rather than merely one-time items.

The EBITDA line illustrates how profitability compressed before non-cash and other adjustments: EBITDA fell from $11.24B (2023) to $1.20B (2024), an -89.31% decline (calculation: (1.20 - 11.24) / 11.24 = -89.31%). Net income's swing is similarly stark: from $1.69B in 2023 to - $18.76B in 2024, a change of - $20.45B or -1,210.06% (calculation: (-18.76 - 1.69) / 1.69 = -1,210.06%). When a company moves from modest profit to a large loss in one year the percent change becomes large and somewhat distorted numerically; the useful signal here is the absolute magnitude of the earnings swing and its drivers.

R&D and operating expense behavior helps explain the mechanics. Research & development rose slightly to $16.55B in 2024 from $16.05B in 2023 (+$0.50B, +3.12%) while selling, general & administrative expenses declined a touch to $5.51B from $5.63B (-$0.12B, -2.13%). As a share of revenue, R&D expanded to 31.16% (16.55 / 53.10 = 31.16%) versus roughly 29.61% in 2023 — meaning R&D intensity increased even as revenue softened. The combination of higher R&D intensity and a collapsing gross margin drove the operating loss.

The income-statement picture across four years (2021–2024) shows a step-change in margins and profitability that is best observed in the table below.

Each row above is drawn directly from the FY income statements for the stated years. The trend is unambiguous: revenue has declined from 2021, margins have compressed steadily since 2021 and the company recorded a large operating loss in 2024. The scale of the operating loss — $11.68B — is a principal source of the negative net result.

Cash-flow quality — operating cash, capex and free cash flow#

Intel’s cash-flow statement (FY2024) presents a mixed picture: operating cash flow remained positive at $8.29B, but free cash flow was - $15.66B after $23.94B of capital spending. That divergence between positive operating cash and negative free cash flow is the core cash-quality story for FY2024. The operating cash number indicates the business generated operating cash despite an accounting net loss; however, the company is choosing (or required) to invest at a rate that more than absorbs operating cash.

The cash flow entries for FY2024 (filed 2025-01-31) show net cash provided by operating activities = $8.29B, capital expenditures = $23.94B, and free cash flow = -$15.66B (calculation: 8.29 - 23.94 = -15.65, rounded in the dataset to -15.66). Expressed as percentages of revenue, operating cash flow is 15.62% (8.29 / 53.10 = 15.62%) while capex is 45.10% of revenue (23.94 / 53.10 = 45.10%) and free-cash-flow margin is -29.49% (-15.66 / 53.10 = -29.49%). Put bluntly: the scale of investment dwarfs operating cash generation in FY2024.

Two additional signals on cash quality stand out. First, depreciation and amortization rose to $11.38B in 2024 from $9.60B in 2023 (+$1.78B, +18.54%), which explains part of why operating cash is positive while net income is negative: non-cash D&A cushions cash flow. Second, the company covered negative free cash flow through financing and changes in investing: net cash from financing activities was +$11.14B and cash at the end of period increased by $1.17B despite the large capex, which implies drawdowns of short-term investments or other financing sources were used to fund investment (cash + short-term investments fell from $25.03B to $22.06B).

The cash-flow table below isolates the highest-impact entries and year-over-year movement.

The arithmetic above shows the funding profile: operating cash of $8.29B plus financing inflows of $11.14B offset investing and capital outlays. From a cash-quality perspective, sustaining this pattern requires either a durable improvement in operating cash, a reduction in capex, or consistent access to financing.

Balance-sheet changes and leverage#

Intel’s balance sheet expanded modestly in FY2024: total assets rose to $196.49B from $191.57B (+$4.92B, +2.57%) while property, plant & equipment increased materially to $107.92B from $97.15B (+$10.77B, +11.09%). The PPE accumulation aligns with the high capex observed in the cash-flow statement and points to continued capital intensity on the asset side. By contrast, goodwill and intangible assets declined to $28.38B from $32.18B, a reduction of $3.80B (-11.82%), which reduces the intangible asset base.

Liabilities rose faster than assets: total liabilities increased to $91.45B from $81.61B, a +$9.84B move (+12.06%) while equity fell to $99.27B from $105.59B (-$6.32B, -5.99%). Retained earnings fell sharply to $49.03B from $69.16B, a decline of $20.13B (-29.11%), reflecting the FY2024 loss and other distributions/adjustments. The combination of higher liabilities and lower equity compresses balance-sheet buffers.

Calculated leverage and liquidity metrics make the trade-offs explicit. Using the FY2024 balance-sheet and market data in the dataset, the principal ratios are:

Those calculations show the core balance-sheet tensions. The current ratio of 1.33x indicates current assets exceed current liabilities, but the quick ratio 0.62x highlights limited near-cash liquidity once inventories and other current assets are excluded. Net debt of $41.76B is sizable and, crucially, net-debt-to-EBITDA is extremely high at 34.80x because EBITDA collapsed to $1.20B in 2024. The enterprise-value-to-EBITDA multiple is correspondingly elevated, principally because the EBITDA denominator is very small.

A small reconciliation note on inputs: the income statement records net income = -$18.76B for FY2024, while the cash-flow statement lists net income = -$19.23B. The numeric difference (~$0.47B) is present in the raw dataset; for profit-based ratios I used the income-statement net income figure and for cash-flow ratios I used the cash-flow statement figures where appropriate. Both numbers are close in magnitude and do not change the directional conclusions, but the difference is called out because it is traceable in the raw filings.

What the numbers reveal (and what they do not)#

The raw data reveal three central facts. First, Intel is in a heavy-investment phase: capex of $23.94B materially outstrips operating cash generation, leading to - $15.66B of free cash flow. That fact is concrete in the cash-flow arithmetic and explains the growth in PPE on the balance sheet. Second, profitability has deteriorated sharply: gross, operating and net margins all compressed, with an operating loss of $11.68B and EBITDA of $1.20B. Third, leverage metrics based on current earnings are stretched: net debt of $41.76B divided by depressed EBITDA produces a multiyear leverage figure (34.80x) that is unusually high and sensitive to any further earnings weakness.

What the numbers do not tell us—without additional disclosure—are the root causes behind the margin compression (for example: product mix shifts, pricing pressure, or discrete charges) and the duration of the capex program. The dataset documents R&D intensity (R&D rose to 31.16% of revenue) and growing PPE, but it cannot, by itself, attribute those dollars to specific projects or guaranteed future revenue. Numbers show investment is happening; they do not guarantee payback.

A key implication flows from the interaction of capex and cash flow. If capex remains structurally high (capex / revenue ~45% in FY2024) while revenue and margins stay weak, negative free cash flow will persist and the company will be dependent on external financing or drawdowns of liquid investments to fund the gap. In FY2024 that pattern was visible: financing activities provided $11.14B and short-term investments declined, allowing cash at period end to rise, but that pathway is finite.

Key takeaways#

First, FY2024 marks a sharp profitability inflection: $53.10B revenue produced - $18.76B net loss and EBITDA of $1.20B, reversing modest profitability in the prior year. The income-statement trajectory from 2021 to 2024 shows margin compression across gross, operating and EBITDA lines, and the swing to a large operating loss is the principal driver of the net loss.

Second, cash-flow quality is weak in free-cash terms despite positive operating cash. Operating cash of $8.29B was overwhelmed by $23.94B of capex, generating - $15.66B free cash flow. Capex-to-revenue of 45.10% and capex-to-depreciation >2x (23.94 / 11.38 = 2.10x) demonstrate the pace of investment is both large and front-loaded.

Third, balance-sheet capacity is meaningful but under pressure: total assets are $196.49B and equity is $99.27B, yet liabilities rose and retained earnings fell sharply. Net debt sits at $41.76B, and with EBITDA depressed the net debt / EBITDA multiple (34.80x) signals that current earnings provide little near-term buffer against leverage stress.

What this means for investors (data-driven signals to monitor)#

The dataset does not permit prescriptive investment advice, but it does indicate the concrete metrics that will determine the company’s near-term financial flexibility. The most relevant indicators to watch in upcoming filings are (1) revenue stabilization and margin recovery — specifically whether gross margin and EBITDA recover toward multi-year norms; (2) a reduction in capex intensity or signs that new capacity will materially contribute to revenue; and (3) improvements in free cash flow or durable financing arrangements that lower net-debt reliance. Progress on those metrics will be visible in sequential income and cash-flow statements.

From a risk perspective, the most immediate vulnerability visible in the numbers is the sensitivity of leverage to EBITDA. With EBITDA at $1.20B, small changes in earnings materially change net-debt multiples. From a financing perspective the company showed in FY2024 that it can source financing (net financing inflow of $11.14B) and conserve cash balances, but persistent negative free cash flow would increase reliance on outside capital or force meaningful reductions in investment activity.

From an operational lens the dataset shows management kept R&D spending elevated even as revenue declined (R&D / revenue = 31.16% in 2024). That increases near-term pressure on margins but is a measurable bet on future product capability; the financial question is whether those R&D and capex investments translate into revenue and margin recovery in a timeframe sufficient to return free cash flow to positive territory.

Conclusion#

The raw FY2024 financials present a clear quantitative story: Intel moved from modest profitability to a $18.76B loss while investing at a scale that produced - $15.66B of free cash flow and expanded PPE to $107.92B. The company still generates positive operating cash, but the pace of capital spending outstrips that generation and has been funded by financing and liquid-investment balances in the near term. The balance sheet remains large, but operating metrics (EBITDA, operating income and margins) are the limiting factor for near-term financial flexibility.

All figures in this report are calculated from the raw FY2021–FY2024 financials and cash-flow and balance-sheet entries supplied in the dataset (filed dates included with each statement). The measurable, data-driven signals to watch in subsequent reports are revenue trends, gross and EBITDA margin recovery, the capex trajectory (absolute dollars and % of revenue), and free-cash-flow dynamics — each of which has a direct, calculable effect on leverage and liquidity. Those are the metrics that will determine how the company’s heavy investment phase converts into operating performance or further strains financial flexibility.

(Prepared from the FY2021–FY2024 income statements, balance sheets and cash-flow statements supplied in the dataset; market-quote figures are taken from the dataset’s provided stock quote.)