Advanced Micro Devices Inc (AMD)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,158,000 | 18,025,000 | 19,508,000 | 10,360,000 | 6,723,000 |
| Payables | US$ in thousands | 1,990,000 | 2,055,000 | 2,493,000 | 1,321,000 | 468,000 |
| Payables turnover | 9.63 | 8.77 | 7.83 | 7.84 | 14.37 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $19,158,000K ÷ $1,990,000K
= 9.63
The payables turnover ratio for Advanced Micro Devices Inc has displayed a decreasing trend over the years. In 2020, the company had a payables turnover of 14.37, indicating that it took approximately 14.37 times to pay off its accounts payable in that year. However, by 2021, this ratio decreased to 7.84, signaling a significant decline in the efficiency of paying off suppliers and vendors. The trend continued with slight fluctuations in the following years, with the ratio hovering around 7.83 in 2022, 8.77 in 2023, and 9.63 in 2024.
The decreasing payables turnover ratio suggests that Advanced Micro Devices Inc is taking longer to settle its accounts payable, which may have implications for its working capital management and relationships with suppliers. The company should closely monitor and manage its payables turnover to ensure timely payments to suppliers while maintaining efficient cash flow management.
Peer comparison
Dec 31, 2024