Advanced Micro Devices Inc (AMD)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	12,725,000	11,754,000	11,082,000	10,661,000	10,460,000	9,952,000	9,559,000	10,144,000	10,603,000	10,626,000	10,358,000	9,160,000	7,929,000	6,954,000	6,098,000	5,116,000	4,347,000	3,845,000	3,392,000	3,165,000
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
Gross profit margin		49.00%	47.82%	47.09%	46.29%	45.66%	44.85%	43.55%	43.83%	44.83%	46.68%	48.10%	48.59%	48.31%	46.98%	45.89%	45.02%	44.82%	44.86%	45.11%	44.53%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $12,725,000K ÷ $25,967,000K
= 49.00%

Advanced Micro Devices Inc has shown a fluctuating trend in its gross profit margin over the past years. The gross profit margin represents the percentage of revenue that exceeds the cost of goods sold, indicating the company's efficiency in production and pricing.

From March 31, 2020, to June 30, 2021, the gross profit margin steadily increased from 44.53% to 45.89%, signifying improving profitability. The peak was reached on December 31, 2021, at 48.31%, showcasing strong performance in controlling production costs and pricing strategies during that period.

However, starting from March 31, 2022, the gross profit margin began to decline, reaching its lowest point on March 31, 2024, at 43.83%. This decrease may indicate challenges such as increasing production costs, pricing pressures, or changes in product mix impacting profitability.

Subsequently, the gross profit margin started to recover, rising to 49.00% by December 31, 2024. This uptrend suggests that Advanced Micro Devices Inc may have implemented strategies to enhance profitability and efficiency in its operations.

Overall, analyzing the gross profit margin of Advanced Micro Devices Inc provides insights into the company's ability to manage production costs and set prices effectively, highlighting its financial performance and operational efficiency over the specified period.