Advanced Micro Devices Inc (AMD)

Liquidity ratios

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
Current ratio 2.51 2.19 2.18 2.38 2.36 2.16 2.44 2.40 2.02 2.24 2.70 2.51 2.54 2.28 2.10 2.21 1.95 2.10 2.08 2.08
Quick ratio 1.83 1.42 1.40 0.90 1.74 1.48 1.82 1.83 1.57 1.64 2.01 1.85 1.85 1.62 1.47 1.65 1.51 1.50 1.58 1.61
Cash ratio 0.86 0.76 0.83 0.90 0.92 0.84 1.08 1.17 0.85 1.01 1.31 1.09 0.95 0.73 0.73 0.70 0.64 0.65 0.63 0.68

The liquidity ratios of Advanced Micro Devices Inc have shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 2, indicating that AMD has had strong liquidity and the ability to meet its short-term obligations in the near term.

The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, has also been mostly above 1, suggesting that AMD has a solid ability to meet its short-term obligations without relying on potentially less liquid inventory.

The cash ratio, which is the most stringent measure of liquidity as it only includes cash and cash equivalents in the numerator, has varied more significantly. However, it has generally been above 0.7, indicating that AMD has maintained a reasonable level of cash on hand relative to its current liabilities.

Overall, while the quick ratio and cash ratio have shown more variability, the current ratio has remained consistently strong, reflecting AMD's ability to weather short-term financial challenges and continue operating without facing immediate liquidity concerns.

See also:

Advanced Micro Devices Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 153.68 131.98 112.69 39.46 107.83 94.56 98.32 99.92 90.26 88.35 95.18 104.36 135.39 125.65 124.99 127.65 112.49 121.51 125.08 139.26

The cash conversion cycle of Advanced Micro Devices Inc has shown fluctuations over the past several quarters. The company's cash conversion cycle measures the time it takes to convert its investments in inventory and accounts receivable into cash inflows from sales. A shorter cash conversion cycle indicates a more efficient use of assets and working capital.

In the most recent quarter ending December 31, 2023, the cash conversion cycle was 153.68 days, indicating a significant increase compared to the previous quarter and a longer time to convert assets into cash. This suggests potential challenges in managing inventory levels and collecting receivables.

However, in the quarter ending March 31, 2023, the cash conversion cycle decreased to 39.46 days, reflecting a sharp improvement and efficient management of working capital. This significant shortening of the cycle may have been influenced by effective inventory management and quicker collection of receivables.

Overall, the cash conversion cycle of Advanced Micro Devices Inc has shown variability, with fluctuations likely influenced by factors such as sales seasonality, inventory management practices, and collection efficiency. Monitoring this metric closely can provide insights into the company's operational efficiency and working capital management.