Advanced Micro Devices Inc (AMD)

Total asset 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
Total assets	US$ in thousands	69,226,000	69,636,000	67,886,000	67,895,000	67,885,000	67,626,000	67,967,000	67,634,000	67,580,000	67,811,000	67,502,000	66,915,000	12,419,000	11,153,000	10,691,000	10,047,000	8,962,000	7,023,000	6,583,000	5,864,000
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

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $25,967,000K ÷ $69,226,000K
= 0.38

Advanced Micro Devices Inc's total asset turnover ratio has shown variability over the reported periods. The ratio measures the company's efficiency in generating sales revenue from its total assets.

In the earlier periods, from March 2020 to March 2022, the total asset turnover ratio fluctuated between 1.08 and 1.24, indicating that the company was effectively utilizing its assets to generate revenue. However, starting from March 2022, there was a significant decline in the ratio to as low as 0.28 in March 2022, before gradually increasing to 0.38 by December 2024.

The decreasing trend in the total asset turnover ratio after March 2022 suggests that Advanced Micro Devices Inc may be facing challenges in efficiently utilizing its assets to drive sales growth. This decline could be due to various factors such as changes in the industry landscape, competitive pressures, or operational inefficiencies.

It is essential for the company to closely monitor and improve its asset utilization efficiency to enhance its overall financial performance and competitiveness in the market.