Advanced Micro Devices Inc (AMD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,875,000 | 23,650,000 | 16,401,000 | 9,684,000 | 6,528,000 |
| Property, plant and equipment | US$ in thousands | 1,589,000 | 1,513,000 | 702,000 | 641,000 | 500,000 |
| Fixed asset turnover | 14.40 | 15.63 | 23.36 | 15.11 | 13.06 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $22,875,000K ÷ $1,589,000K
= 14.40
The fixed asset turnover of Advanced Micro Devices Inc has shown variation over the past five years, ranging from 13.06 in 2019 to a peak of 23.36 in 2021. This ratio indicates how efficiently the company is generating sales revenue from its investment in fixed assets.
A higher fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to drive sales, indicating operational efficiency and potentially better productivity. On the other hand, a lower ratio may imply underutilization of fixed assets or inadequate sales generation relative to the assets in place.
The decreasing trend in fixed asset turnover from 2021 to 2023 could be a cause for further investigation, as it may signal declining efficiency in generating sales from fixed assets. It would be important to assess whether this trend is due to a decrease in sales, an increase in fixed assets, or a combination of both factors. Further analysis and comparison with industry benchmarks may provide more insights into the company's operational performance and asset management efficiency.
Peer comparison
Dec 31, 2023