Advanced Micro Devices Inc (AMD)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,875,000 | 23,650,000 | 16,401,000 | 9,684,000 | 6,528,000 |
| Total current assets | US$ in thousands | 16,768,000 | 15,019,000 | 8,583,000 | 6,143,000 | 4,597,000 |
| Total current liabilities | US$ in thousands | 6,689,000 | 6,369,000 | 4,240,000 | 2,417,000 | 2,359,000 |
| Working capital turnover | 2.27 | 2.73 | 3.78 | 2.60 | 2.92 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $22,875,000K ÷ ($16,768,000K – $6,689,000K)
= 2.27
The working capital turnover for Advanced Micro Devices Inc has fluctuated over the past five years. In 2023, the working capital turnover was 2.27, indicating that the company generated $2.27 in revenue for every dollar of working capital invested. This figure decreased compared to the previous year, reflecting a less efficient use of working capital.
Looking further back, in 2022 the working capital turnover was 2.73, showing an improvement in efficiency from the prior year. The best performance in the period was in 2021, with a working capital turnover of 3.78, suggesting a very efficient utilization of working capital to generate revenue.
In 2020 and 2019, the working capital turnover was 2.60 and 2.92 respectively. While these numbers indicate satisfactory efficiency levels, they were lower compared to 2021.
Overall, the working capital turnover ratio for Advanced Micro Devices Inc has shown some variability over the years, with the company experiencing peaks and dips in efficiency in utilizing its working capital to generate revenue. Further analysis and comparison with industry benchmarks could provide more insights into the company's working capital management effectiveness.
Peer comparison
Dec 31, 2023