Advanced Micro Devices Inc (AMD)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	3.81	3.38	4.08	4.54	3.54	4.39	5.09	—	4.53	5.24	5.31	5.12	5.41	6.64	6.56	5.20	4.43	4.01	4.18	3.75
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
Working capital turnover	2.21	2.19	2.09	2.17	2.27	2.45	2.46	2.55	2.73	2.95	2.71	2.42	3.78	3.35	2.70	2.62	2.60	2.78	2.81	2.96

Advanced Micro Devices Inc's activity ratios provide insights into how efficiently the company manages its assets and operations.

1. Inventory Turnover: It shows how many times AMD has turned over its inventory during a specific period. The trend indicates an overall improvement in inventory management efficiency from 4.60 in March 2020 to 3.18 in December 2024, with a recent increase to 3.18.

2. Receivables Turnover: This ratio reflects how quickly AMD collects payments from customers. The company has shown fluctuating trends in receivables turnover, with a peak of 6.64 in September 2021 and a recent decrease to 3.81 in December 2024.

3. Payables Turnover: It measures how AMD manages its accounts payable. The company has demonstrated varying payables turnover ratios, with notable fluctuations from 13.70 in December 2020 to 7.05 in September 2024, indicating changes in payment practices.

4. Working Capital Turnover: This ratio assesses how effectively AMD utilizes its working capital to generate sales revenue. The figures have shown a mixed trend, with some fluctuations, but overall stability from 2.78 in September 2020 to 2.21 in December 2024.

Overall, while the activity ratios of Advanced Micro Devices Inc have shown some fluctuations over the years, the company appears to have maintained a reasonable level of efficiency in managing its inventory, receivables, payables, and working capital turnover. The management should continue monitoring these ratios to ensure optimal asset utilization and operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	114.65	109.98	101.19	91.59	83.66	86.14	91.02	84.60	80.20	81.51	69.42	72.92	70.19	74.35	75.10	80.27	79.65	82.82	95.52	79.32
Days of sales outstanding (DSO)	days	95.86	107.96	89.54	80.34	103.18	83.15	71.70	—	80.65	69.59	68.69	71.28	67.49	54.96	55.66	70.17	82.39	91.04	87.33	97.37
Number of days of payables	days	39.79	51.78	34.45	27.92	39.51	43.51	55.39	50.30	53.02	56.54	39.80	44.27	47.43	40.97	35.57	46.09	26.64	48.21	57.86	49.05

The activity ratios of Advanced Micro Devices Inc indicate how efficiently the company manages its operations.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows the number of days it takes for AMD to sell its inventory. A decrease in DOH over time, from 79.32 days in March 2020 to 114.65 days in December 2024, suggests that the company is managing its inventory effectively.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for AMD to collect payment after a sale. The DSO trend reveals a fluctuating pattern, with a significant reduction from 97.37 days in March 2020 to 55.66 days in June 2021 before rising again to 107.96 days in September 2024. A lower DSO indicates efficient accounts receivable management.

3. Number of Days of Payables:
- This ratio reflects how long it takes for AMD to pay its suppliers. The trend in payables days shows some fluctuations but generally remained within a manageable range, with variations from 26.64 days in December 2020 to 55.39 days in June 2023. A longer payable period can indicate better cash flow management.

Overall, while AMD has shown improvement in managing its inventory and payables over the years, the fluctuating trend in DSO requires attention to ensure consistent and efficient collection processes.

Long-term

	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
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
Total asset turnover	0.38	0.35	0.35	0.34	0.34	0.33	0.32	0.34	0.35	0.34	0.32	0.28	1.32	1.33	1.24	1.13	1.08	1.22	1.14	1.21

Advanced Micro Devices Inc's Fixed Asset Turnover ratio has been relatively stable in the range of 13 to 20 over the past few years, indicating that the company has been efficient in generating revenue from its fixed assets. There was a slight dip in the ratio in the most recent period ending December 31, 2024, compared to the previous quarters.

In contrast, the Total Asset Turnover ratio has shown greater variability, with a significant decrease from 1.32 in December 2021 to 0.28 in March 2022, before gradually increasing to 0.38 by December 2024. This suggests that the company's total asset utilization for generating sales has fluctuated more over the period.

Overall, the trends in both ratios imply that Advanced Micro Devices Inc has been effectively utilizing its fixed assets to generate revenue, while the total asset turnover reflects fluctuating efficiency in utilizing all assets for revenue generation.