Advanced Micro Devices Inc (AMD)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	25,967,000	22,875,000	23,650,000	16,401,000	9,684,000
Property, plant and equipment	US$ in thousands	1,802,000	1,589,000	1,513,000	702,000	641,000
Fixed asset turnover		14.41	14.40	15.63	23.36	15.11

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $25,967,000K ÷ $1,802,000K
= 14.41

Fixed asset turnover is a key efficiency ratio that measures how well a company's fixed assets are utilized to generate sales. Advanced Micro Devices Inc's fixed asset turnover has shown fluctuations over the past five years. The ratio increased significantly from 15.11 in December 31, 2020, to 23.36 in December 31, 2021, indicating a more efficient use of fixed assets to generate revenue. However, there was a slight decrease in the ratio to 15.63 in December 31, 2022, followed by a further decline to 14.40 in December 31, 2023, and a slight increase to 14.41 in December 31, 2024.

Overall, the company's fixed asset turnover ratio has generally been at relatively high levels, suggesting that Advanced Micro Devices Inc has effectively utilized its fixed assets to generate sales. However, the fluctuations in the ratio over the years may indicate changes in the company's asset base or sales volumes. Further analysis of the underlying factors driving these changes would provide deeper insights into the company's operational efficiency and asset management strategies.