Advanced Micro Devices Inc (AMD)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 401,000 | 1,264,000 | 3,648,000 | 1,369,000 | 631,000 |
| Revenue | US$ in thousands | 22,875,000 | 23,650,000 | 16,401,000 | 9,684,000 | 6,528,000 |
| Operating profit margin | 1.75% | 5.34% | 22.24% | 14.14% | 9.67% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $401,000K ÷ $22,875,000K
= 1.75%
The operating profit margin of Advanced Micro Devices Inc has exhibited fluctuations over the past five years. In 2023, the operating profit margin declined to 1.75% from 5.34% in 2022. This decrease indicates that the company's ability to generate profits from its core operations weakened in 2023 compared to the prior year. The significant drop from the high of 22.24% in 2021 to 1.75% in 2023 suggests a considerable decrease in the efficiency of the company in controlling its operating expenses and boosting profitability. Further analysis is required to understand the specific factors contributing to this decline in the operating profit margin and to identify areas for improvement.
Peer comparison
Dec 31, 2023