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.