Advanced Micro Devices Inc (AMD)

Payables 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
Payables	US$ in thousands	1,990,000	2,530,000	1,699,000	1,418,000	2,055,000	2,245,000	2,779,000	2,518,000	2,493,000	2,337,000	1,518,000	1,476,000	1,321,000	1,048,000	836,000	949,000	468,000	752,000	802,000	653,000
Payables turnover		9.17	7.05	10.60	13.07	9.24	8.39	6.59	7.26	6.88	6.46	9.17	8.24	7.70	8.91	10.26	7.92	13.70	7.57	6.31	7.44

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $18,255,000K ÷ $1,990,000K
= 9.17

To analyze Advanced Micro Devices Inc's payables turnover, we can see that the ratio fluctuated over the periods provided in the data.

The payables turnover ratio measures how efficiently a company pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could imply effective cash management or good supplier relationships. Conversely, a lower ratio may suggest that the company is taking longer to pay its bills, which could indicate potential liquidity issues or strained relationships with suppliers.

Based on the data provided:
- The payables turnover ranged from a low of 6.31 in June 30, 2020, to a high of 13.07 in March 31, 2024.
- There were periods of significant changes in the ratio, indicating fluctuations in how quickly the company was managing its payables.
- Overall, the payables turnover ratio for Advanced Micro Devices Inc showed variability, with fluctuations in different quarters.

It is important to further investigate the reasons behind these fluctuations and trends to assess the company's liquidity management, supplier relationships, and overall financial health. Additionally, comparing the payables turnover ratio with industry benchmarks and trends can provide further insights into Advanced Micro Devices Inc's financial performance.