Advanced Micro Devices Inc (AMD)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	25,967,000	24,579,000	23,534,000	23,030,000	22,910,000	22,190,000	21,950,000	23,144,000	23,650,000	22,763,000	21,535,000	18,850,000	16,413,000	14,803,000	13,287,000	11,365,000	9,698,000	8,572,000	7,519,000	7,107,000
Property, plant and equipment	US$ in thousands	1,802,000	1,669,000	1,666,000	1,624,000	1,589,000	1,566,000	1,541,000	1,500,000	1,513,000	1,486,000	1,441,000	1,406,000	702,000	717,000	671,000	681,000	641,000	595,000	585,000	540,000
Fixed asset turnover		14.41	14.73	14.13	14.18	14.42	14.17	14.24	15.43	15.63	15.32	14.94	13.41	23.38	20.65	19.80	16.69	15.13	14.41	12.85	13.16

December 31, 2024 calculation

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

Advanced Micro Devices Inc's fixed asset turnover has shown a generally increasing trend over the reported periods from March 31, 2020, to December 31, 2024. The ratio increased from 13.16 to 14.41 by September 30, 2020, indicating that the company generated $14.41 in sales for each dollar invested in fixed assets. The ratio continued to rise, reaching its highest point of 23.38 by December 31, 2021, showing significant efficiency in utilizing fixed assets to generate revenue.

However, after December 2021, the fixed asset turnover ratio started to decline gradually, falling to 14.41 by December 31, 2024. This could imply a decrease in the effectiveness of the company's fixed asset utilization in generating sales.

Overall, while the company demonstrated strong efficiency in generating revenue from fixed assets during the earlier periods, the decreasing trend in the fixed asset turnover ratio towards the end of the reported period suggests a need for further analysis to understand the reasons behind the decline and to potentially improve asset utilization efficiency going forward.