The annual cost of Intel debt exceeds the salaries of 8000 engineers. In 2012 interest payments on debt was $90m now is near $800m. What happens when interest rates normalize?
6 replies (most recent on top)
Hire more Indians. So when the bank ask for repayment, those Indian employee can shake their head simultaneously
The debt is totally real news, man boobs bra guy.
We used to be debt-free until a few years back. Now we are taking on huge debt to buy companies like Altera & Mobileye and are now net cash negative. This leaves little cushion if business slows down considerably or management makes bad business decisions. We need someone like Gordon Moore/Andy Grove back
Time will tell...
Intel is covered on debt, it's what's used for.
Ps only four catagoary have had any inflation in 60 years.
Defense/Gov, health care, real estate, education everything is headed even more dow. Fed can play with creating inflation won't work
Defense is basicly welfare to poor 17, 18 year olds and the white fat cat defense contractor. Remember no one fights for their country in USA, only for their Goverment. With Robotics and AI you can run defense with less than 100k humans.
Education will become Khan Academy
Health care is a joke walk 5 miles eat vegan 90% cancear, heart dieses go away
It depends on the terms of the debt. If it's fixed rate and rates go up - Intel got a great deal.
If it's floating - well that would be bad.
They're using the money to buy back stock. Without the debt, INTC would probably trade in the $20s. It's not sustainable without revenue and earnings growth which haven't happened in the last 10 years.