Advanced Micro Devices Inc (AMD)

Working capital 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 current assets	US$ in thousands	19,049,000	18,735,000	17,465,000	17,084,000	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
Total current liabilities	US$ in thousands	7,281,000	7,500,000	6,195,000	6,474,000	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
Working capital turnover		2.21	2.19	2.09	2.17	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

December 31, 2024 calculation

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

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. Based on the data provided for Advanced Micro Devices Inc, the working capital turnover has shown fluctuations over the reported periods.

The working capital turnover ratio for Advanced Micro Devices Inc ranged from a high of 3.78 in December 31, 2021, to a low of 2.09 in June 30, 2024. This implies that for every dollar of working capital invested, the company generated sales revenue amounting to the working capital turnover ratio.

The trend in the working capital turnover ratio shows a general decline from the peak in December 31, 2021, to June 30, 2024. This indicates a potential decrease in efficiency in utilizing working capital to drive sales over the period.

It is essential for Advanced Micro Devices Inc to closely monitor and manage its working capital levels to ensure optimal utilization and efficiency in generating sales revenue. A downward trend in the working capital turnover ratio may indicate inefficiencies in the company's operations that require attention and strategic adjustments.