Advanced Micro Devices Inc (AMD)

Net profit margin

		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
Net income (ttm)	US$ in thousands	854,000	208,000	-25,000	395,000	1,320,000	2,273,000	3,130,000	3,393,000	3,162,000	3,969,000	3,436,000	2,883,000	2,490,000	879,000	609,000	487,000	341,000	209,000	191,000	272,000
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
Net profit margin		3.73%	0.94%	-0.11%	1.71%	5.58%	9.99%	14.53%	18.00%	19.27%	26.81%	25.86%	25.37%	25.68%	10.25%	8.10%	6.85%	5.13%	3.53%	3.29%	4.51%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $854,000K ÷ $22,910,000K
= 3.73%

The net profit margin of Advanced Micro Devices Inc has displayed fluctuations over the past few quarters. The net profit margin decreased significantly from the first quarter of 2022 to the second quarter of 2023, reaching negative values in the second quarter of 2023. This decline could be a result of various factors such as increased costs, pricing pressures, or changes in revenue streams.

However, the net profit margin showed a recovery in the following quarters, albeit at a lower level compared to the earlier periods. The company experienced a downward trend in profitability from 2019 to 2020, followed by improvements in 2021 and early 2022, before facing challenges in mid-to-late 2022 and early 2023.

Overall, the net profit margin trend indicates that Advanced Micro Devices Inc has been experiencing fluctuations in its profitability, highlighting the importance of closely monitoring and managing expenses and revenues to maintain sustainable profitability levels.