Advanced Micro Devices Inc (AMD)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	3.81	3.70	3.49	3.75	4.55	4.48	5.26	5.01	5.20	4.91	4.86	4.55	4.58	4.41	3.82	4.60	4.70	4.09	4.12	4.53
Receivables turnover	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	3.23	3.74	3.36	3.67
Payables turnover	8.07	7.33	5.73	6.31	6.88	6.46	9.17	8.24	7.70	8.91	10.26	7.92	13.70	7.57	6.31	7.44	4.67	5.57	5.05	8.94
Working capital turnover	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	2.97	2.89	2.98	3.15

In analyzing Advanced Micro Devices Inc's activity ratios, we observe the following trends:

1. Inventory Turnover: The inventory turnover ratio has ranged from 3.49 to 5.26 over the past four quarters. There has been some fluctuation, but overall, the company has been able to turn its inventory over effectively, with a higher turnover indicating a more efficient management of inventory.

2. Receivables Turnover: The receivables turnover ratio has shown variability, ranging from 3.23 to 6.64. In recent quarters, the company has been able to collect its receivables at a faster pace compared to previous periods, indicating effective credit management and collection processes.

3. Payables Turnover: The payables turnover ratio has also demonstrated fluctuations, varying from 4.67 to 13.70. A higher turnover ratio suggests that the company is efficiently managing its accounts payable, negotiating favorable credit terms, or paying suppliers in a timely manner.

4. Working Capital Turnover: The working capital turnover ratio has been relatively stable around 2.5 to 3.5 over the past quarters. This ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher turnover ratio implies that the company is effectively utilizing its resources to generate sales.

Overall, the analysis of Advanced Micro Devices Inc's activity ratios suggests that the company has been managing its inventory, receivables, payables, and working capital effectively to support its operational activities and drive performance.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	95.71	98.66	104.68	97.33	80.20	81.51	69.42	72.92	70.19	74.35	75.10	80.27	79.65	82.82	95.52	79.32	77.70	89.34	88.63	80.56
Days of sales outstanding (DSO)	days	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	112.97	97.72	108.75	99.53
Number of days of payables	days	45.20	49.83	63.70	57.87	53.02	56.54	39.80	44.27	47.43	40.97	35.57	46.09	26.64	48.21	57.86	49.05	78.17	65.54	72.30	40.83

The Days of Inventory on Hand (DOH) for Advanced Micro Devices Inc fluctuated over the periods provided, ranging from 69.42 days to 104.68 days. This indicates that the company took between approximately two to three months to sell its inventory during these periods.

The Days of Sales Outstanding (DSO) varied from 54.96 days to 112.97 days, suggesting that Advanced Micro Devices took between approximately one and a half to three and a half months to collect its accounts receivable during these periods.

The Number of Days of Payables ranged from 26.64 days to 78.17 days, indicating that the company took between approximately one to two and a half months to pay its short-term obligations to suppliers and creditors during these periods.

Overall, the company's activity ratios reflect fluctuations in efficiency in managing its inventory, collecting receivables, and paying payables over the periods provided. It is important for Advanced Micro Devices to closely monitor and manage these activity ratios to improve its working capital management and overall operational efficiency.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	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	13.29	13.08	12.69	15.99
Total asset turnover	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	1.10	1.13	1.14	1.22

The fixed asset turnover ratio for Advanced Micro Devices Inc has shown a consistent trend of improvement over the past few quarters, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests that AMD is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated slightly, but generally, it indicates that AMD has been able to generate sales in relation to its total assets. The ratio has been above 1 in recent quarters, which indicates that the company is generating more revenue relative to its total assets.

Overall, the company's long-term activity ratios suggest that Advanced Micro Devices Inc is efficiently managing its assets to generate sales, with a particularly strong performance in terms of fixed asset turnover. This efficiency is crucial for the company's profitability and long-term growth prospects.