Advanced Micro Devices Inc (AMD)

Receivables 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
Revenue (ttm) US$ in thousands 25,967,000 24,579,000 23,534,000 23,030,000 22,910,000 22,190,000 21,950,000 23,144,000 23,650,000 22,763,000 21,535,000 18,850,000 16,413,000 14,803,000 13,287,000 11,365,000 9,698,000 8,572,000 7,519,000 7,107,000
Receivables US$ in thousands 6,820,000 7,270,000 5,773,000 5,069,000 6,476,000 5,055,000 4,312,000 5,226,000 4,340,000 4,053,000 3,681,000 3,035,000 2,229,000 2,026,000 2,185,000 2,189,000 2,138,000 1,799,000 1,896,000
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

December 31, 2024 calculation

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

The receivables turnover ratio for Advanced Micro Devices Inc has shown some fluctuations over the past few years. The ratio indicates how efficiently the company is managing its accounts receivable by converting them into cash. A higher turnover ratio is generally preferred as it suggests that the company is collecting payments from its customers more quickly.

Looking at the data provided, we see that the receivables turnover ratio for the company has ranged from a low of 3.38 to a high of 6.64 over the analyzed periods. The trend shows improvement in the receivables turnover ratio from March 31, 2020, to September 30, 2021, where it peaked at 6.64. This indicates that the company was collecting payments from its customers at a faster rate during this time.

However, from December 31, 2021, to December 31, 2024, the receivables turnover ratio has generally decreased, with some fluctuations in between. This downward trend could suggest that the company may be taking longer to collect payments from its customers during these periods, impacting its cash flow efficiency.

It is important for Advanced Micro Devices Inc to monitor and manage its accounts receivable effectively to maintain a healthy cash flow position. Analyzing the reasons behind the fluctuations in the receivables turnover ratio can help the company improve its collection practices and maintain a balance between sales and cash flow.


See also:

Advanced Micro Devices Inc Receivables Turnover (Quarterly Data)