2023 Cash Flow Analysis for Intel Corporation INTC

Intel Corporation is a leading multinational corporation and technology company, renowned for its semiconductor products and innovations in computing. Headquartered in Santa Clara, California, Intel was founded in 1968 and has been at the forefront of technological advancements, particularly in microprocessors and integrated circuits.

The cash flow statement is a crucial financial document that illustrates how much cash or cash equivalents a company has generated and utilized over a specific period. It is segmented into three primary sections: operating activities, investing activities, and financing activities. This statement is vital for investors and analysts as it provides insights into how a company is managing its cash resources.

How to read the chart

The chart above depicts the cash flow of Intel Corporation in 2023. The width of the bars signifies the volume of cash flow, with wider bars representing larger amounts.

On the left, we begin with Intel's cash position at the start of the year. Due to a decrease in cash over the year, a portion of that cash was allocated to financing and investing activities. Cash flow from operating activities was the primary source of cash, while investing activities showed a significant outflow.

The cash flow from investing activities is negative, indicating that Intel spent more on new investments than it received from selling assets or investments. Conversely, the cash flow from financing activities is positive, reflecting that the company raised more cash, possibly through debt issuance or other financing means, than it paid out.

After accounting for the change in cash, we conclude on the right with Intel'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 2023. The counter starts 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 2023. The counter is designed to give you a sense of the scale of the company's cash flow and how rapidly it moves.

Cash Flow Statement

In 2023, Intel Corporation generated $11,471 million in cash from operating activities, spent $24,041 million on investing activities, and received $8,505 million from financing activities. Consequently, the company's cash balance decreased by $4,065 million during the year.

The company's beginning cash balance was $11,144 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The ending cash balance was $7,079 million.

Intel's capital expenditures for the year amounted to $25,750 million, representing the cash spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations results in a free cash flow of -$14,279 million in 2023. This negative free cash flow indicates that the company used more cash for capital investments than it generated from its operations, which may impact its ability to pay dividends, repurchase stock, or make other investments.

Summary

Intel Corporation's cash flow in 2023 highlights several key aspects. The significant capital expenditures reflect Intel's commitment to investing in its infrastructure and technology, which resulted in a negative free cash flow. Despite the substantial outflow in investing activities, the company managed to secure positive cash flow from financing activities, suggesting strategic financial maneuvers to support its investment initiatives. The overall decrease in cash balance underscores the need for Intel to balance its operational cash generation with its ambitious investment plans.