2021 Cash Flow Analysis for Intel Corporation INTC

Intel Corporation is a leading multinational corporation known for designing and manufacturing semiconductor products. Headquartered in Santa Clara, California, Intel was founded in 1968 and has become a pivotal player in the technology industry, particularly in the development of microprocessors and integrated circuits.

The cash flow statement is a crucial financial document that outlines how much cash or cash equivalents a company has generated and utilized over a specific period. It is divided into three main sections: operating activities, investing activities, and financing activities. This statement provides investors and analysts with insights into how a company manages its cash resources.

How to read the chart

The chart above illustrates the cash flow of Intel Corporation in 2021. The width of the bars corresponds to the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with the company's cash position at the start of the year. During the year, Intel's cash decreased, indicating that a portion of the cash was allocated to financing and investing activities. The cash flow from operating activities is the largest source of cash, while investing activities show a significant outflow.

The cash flow from investing activities is negative, suggesting that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, indicating that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Intel Corporation's cash flow, we have created a real-time counter that simulates the company's cash flow for 2021. The counter begins when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they occur but a simulation based on the company's reported cash flow for 2021. The counter is designed to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2021, Intel Corporation generated $29,991 million in cash from operating activities, spent $25,167 million on investing activities, and used $5,862 million in financing activities. Consequently, the company's cash balance decreased by $1,038 million during the year.

The company's beginning cash balance was $5,865 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $4,827 million.

Intel's capital expenditures for the year were $18,733 million, representing the cash spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $11,258 million in 2021. This amount represents the cash available to pay dividends, repurchase stock, or make other investments.

Summary

Intel Corporation's cash flow in 2021 highlights several key aspects. The company maintained a strong cash flow from operating activities, which was crucial in offsetting the significant outflows from investing activities. The negative cash flow from investing activities reflects Intel's substantial investments in capital expenditures, indicative of its commitment to growth and innovation. Despite these investments, Intel managed to maintain a positive free cash flow, showcasing its ability to generate cash even while investing heavily in its future. The decrease in cash balance suggests a strategic use of cash resources, balancing between operational needs and long-term investments.