Advanced Micro Devices Inc (AMD)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.62 | 2.51 | 2.36 | 2.02 | 2.54 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $19,049,000K ÷ $7,281,000K
= 2.62
The current ratio of Advanced Micro Devices Inc has shown slight fluctuations over the past five years, ranging from 2.02 to 2.62. In general, a current ratio above 1 indicates that a company has more current assets than current liabilities, which is a positive sign of liquidity.
The company's current ratio has generally remained at a healthy level, reflecting its ability to meet its short-term obligations using its current assets. A current ratio above 2 suggests that Advanced Micro Devices Inc has a comfortable buffer to cover its current liabilities.
Although there was a slight decrease in the current ratio in 2021 to 2.02, it gradually improved in subsequent years, reaching a peak of 2.62 in 2024. This indicates that the company's liquidity position strengthened over time, which can provide a sense of reassurance to investors and creditors regarding its short-term financial health.
Peer comparison
Dec 31, 2024