Advanced Micro Devices Inc (AMD)

Working capital 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
Total current assets	US$ in thousands	19,049,000	16,768,000	15,019,000	8,583,000	6,143,000
Total current liabilities	US$ in thousands	7,281,000	6,689,000	6,369,000	4,240,000	2,417,000
Working capital turnover		2.21	2.27	2.73	3.78	2.60

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $25,967,000K ÷ ($19,049,000K – $7,281,000K)
= 2.21

The working capital turnover of Advanced Micro Devices Inc has exhibited fluctuations over the past five years. In 2020, the company's working capital turnover was 2.60, reflecting the efficiency of their working capital management.

Subsequently, there was a significant improvement in 2021, with the ratio increasing to 3.78, indicating that the company was able to generate $3.78 in revenue for every dollar of working capital invested. This surge suggests a more efficient utilization of resources during that period.

However, in 2022, there was a slight decline in the working capital turnover to 2.73, although it remained relatively high compared to the base year of 2020. This could signify some challenges in working capital management during that year.

The ratio then decreased further in 2023 to 2.27, indicating that the company generated less revenue per dollar of working capital compared to the previous year. This decline may raise concerns about the company's operational efficiency and liquidity management during that period.

Lastly, in 2024, the working capital turnover decreased slightly to 2.21, continuing the downward trend observed in the previous year. This suggests that Advanced Micro Devices Inc may need to focus on optimizing their working capital management to enhance efficiency and maintain sustainable growth in the future.