Advanced Micro Devices Inc (AMD)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	25,967,000	22,875,000	23,650,000	16,401,000	9,684,000
Receivables	US$ in thousands	6,820,000	6,476,000	5,226,000	3,035,000	2,189,000
Receivables turnover		3.81	3.53	4.53	5.40	4.42

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $25,967,000K ÷ $6,820,000K
= 3.81

The receivables turnover ratio for Advanced Micro Devices Inc has shown a fluctuating trend over the past five years. In December 2020, the ratio was 4.42, indicating that the company collected its accounts receivable approximately 4.42 times during that year.

Subsequently, in December 2021, the receivables turnover improved to 5.40, suggesting a more efficient collection of receivables compared to the previous year. However, in December 2022, the ratio decreased to 4.53, which may indicate a slower rate of collection compared to the previous year.

By December 2023, the receivables turnover ratio further declined to 3.53, signaling a significant decrease in the speed at which the company is collecting its receivables. This decline could raise concerns about the company's ability to efficiently convert its credit sales into cash.

In the most recent period, ending December 2024, the receivables turnover ratio improved slightly to 3.81. While an improvement from the previous year, the ratio remains lower than the levels seen in 2020 and 2021.

Overall, the fluctuating trend in the receivables turnover ratio for Advanced Micro Devices Inc suggests varying efficiency in collecting accounts receivable over the past five years. The company may need to focus on improving its credit management and collection practices to enhance its liquidity and cash flow position.