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How Intel Spent $56 Billion in 12 Months

By John Maxfield - Nov 27, 2015 at 9:22AM

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A slideshow reveals three interesting points about the chipmaker.

The Intel exhibit at the 2015 Mobile World Congress. Image credit: Intel.

Intel's ( INTC 0.67% ) deeply entrenched position atop the chipmaking industry helped it generate $53 billion in revenue over the past 12 months. What does the 47-year-old company do with all this money? The slideshow below answers this question.

Viewers will learn three interesting points, among other things, from the slideshow:

  • First, Intel distributes nearly all of its earnings to shareholders. After subtracting dividends and share buybacks, only 7.2% of Intel's net revenue remained.
  • Second, Intel enjoys wide profit margins. Its pre-tax operating margin over the past 12 months was 26% compared to a median of 17% for the S&P 500's 100 biggest companies.
  • Which, third, goes a long way toward explaining why Intel's shares have outperformed the S&P 500 by approximately 5,200 percentage points since 1989.

What else can investors learn about Intel from an analysis of its revenue flows? Scroll through the brief slideshow below to find out.

All slideshow data sourced from YCharts.com on Nov. 24, 2015. Slideshow image credit: Intel, istock/Thinkstock.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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