Edwyn
Over the past five years, Intel’s income statement reveals a marked shift in financial performance. In 2020, Intel’s revenue of $77.9 billion and robust gross profit of $43.6 billion were supported by strong operating income ($23.7 billion) and net income ($20.9 billion). The following year, revenues inched up slightly to $79.0 billion, although operating and net income experienced modest declines, suggesting early signs of operational pressure. However, beginning in 2022, there was a significant downturn: revenue fell by roughly 20% from 2021 to $63.1 billion, and gross profit dropped by about 39%, from $43.8 billion to $26.9 billion. Operating income, which plunged to $2.3 billion (an approximate 88% decline from 2021), and net income, declined to $8.0 billion, underscoring steep reductions in profitability. The trend continued into 2023 and 2024, with 2023 revenue dropping further to $54.2 billion and operating income nearly flattening at $93 million, while net income shrank to $1.7 billion. By 2024, the company recorded a slight revenue decline to $53.1 billion, but more notably, operating losses of $11.7 billion and net losses of $18.8 billion emerged. These swings, especially the dramatic operating income collapse seen after 2021, could be driven by intensifying competitive pressures, shifts in product mix, higher production costs, and potential supply chain disruptions in the semiconductor industry. Overall, while Intel had a record of strong profitability in earlier years, the recent financial metrics signal increasing operational challenges, raising concerns about the company's current financial health and long-term sustainability.
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