Advanced Micro Devices Inc (AMD)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	6,643,000	5,924,000	5,810,000	6,029,000
Total current assets	US$ in thousands	16,768,000	16,688,000	16,505,000	15,658,000	15,019,000	14,420,000	13,462,000	13,369,000	8,583,000	7,988,000	7,818,000	7,197,000	6,143,000	5,500,000	5,109,000	4,390,000	4,597,000	3,912,000	3,754,000	3,677,000
Total current liabilities	US$ in thousands	6,689,000	7,627,000	7,572,000	6,577,000	6,369,000	6,691,000	5,523,000	5,581,000	4,240,000	3,564,000	2,892,000	2,864,000	2,417,000	2,417,000	2,434,000	1,985,000	2,359,000	1,864,000	1,804,000	1,764,000
Working capital turnover		2.27	2.45	2.46	2.55	2.73	2.95	2.71	2.42	3.78	3.35	2.70	2.62	2.60	2.78	2.81	2.96	2.97	2.89	2.98	3.15

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $22,910,000K ÷ ($16,768,000K – $6,689,000K)
= 2.27

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. In the case of Advanced Micro Devices Inc, the working capital turnover ratio has fluctuated over the past few years, ranging from 2.27 to 3.78.

A higher working capital turnover ratio indicates that the company is effectively using its working capital to generate sales. In the most recent quarter, the ratio was 2.27, showing a slight decrease compared to the previous quarter. However, it is still within a reasonable range.

It is noteworthy that the ratio has shown some volatility over the quarters, potentially indicating fluctuations in the company's efficiency in managing its working capital. Further analysis is needed to understand the factors contributing to these fluctuations and to assess the overall effectiveness of Advanced Micro Devices Inc in utilizing its working capital.