Advanced Micro Devices Inc (AMD)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	18,255,000	17,835,000	18,003,000	18,538,000	18,983,000	18,835,000	18,314,000	18,272,000	17,163,000	15,087,000	13,922,000	12,169,000	10,166,000	9,337,000	8,578,000	7,516,000	6,411,000	5,694,000	5,059,000	4,859,000
Inventory	US$ in thousands	5,734,000	5,374,000	4,991,000	4,652,000	4,351,000	4,445,000	4,567,000	4,235,000	3,771,000	3,369,000	2,648,000	2,431,000	1,955,000	1,902,000	1,765,000	1,653,000	1,399,000	1,292,000	1,324,000	1,056,000
Inventory turnover		3.18	3.32	3.61	3.98	4.36	4.24	4.01	4.31	4.55	4.48	5.26	5.01	5.20	4.91	4.86	4.55	4.58	4.41	3.82	4.60

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $18,255,000K ÷ $5,734,000K
= 3.18

Advanced Micro Devices Inc's inventory turnover has shown fluctuations over the periods indicated. The inventory turnover ratio measures the number of times a company sells and replaces its inventory during a specific time frame. A higher inventory turnover ratio generally indicates more efficient inventory management.

From March 31, 2020, to December 31, 2021, AMD's inventory turnover increased steadily from 4.60 to 5.20, reflecting improved efficiency in managing its inventory levels. This may indicate effective inventory control, timely restocking, and strong demand for the company's products.

However, from March 31, 2022, to December 31, 2024, the inventory turnover ratio experienced some variability, fluctuating between 3.98 and 5.26. This suggests potential changes in the company's inventory management practices, such as fluctuations in demand, inventory holding policies, or production efficiency.

Overall, while AMD has demonstrated relatively consistent inventory turnover ratios, it may be beneficial for the company to further analyze the factors influencing these fluctuations to optimize its inventory management processes and enhance operational efficiency.