Advanced Micro Devices Inc (AMD)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,900,000 | 401,000 | 1,264,000 | 3,648,000 | 1,369,000 |
| Revenue | US$ in thousands | 25,967,000 | 22,875,000 | 23,650,000 | 16,401,000 | 9,684,000 |
| Operating profit margin | 7.32% | 1.75% | 5.34% | 22.24% | 14.14% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,900,000K ÷ $25,967,000K
= 7.32%
Based on the provided data, Advanced Micro Devices Inc's operating profit margin has experienced fluctuations over the years. In December 31, 2020, the operating profit margin was 14.14%, showing a solid performance. By December 31, 2021, the operating profit margin improved significantly to 22.24%, indicating increased efficiency in generating profit from operations.
However, there was a notable decline in performance by December 31, 2022, with the operating profit margin dropping to 5.34%. This decrease suggests potential challenges or inefficiencies impacting the company's profitability.
Further, by December 31, 2023, the operating profit margin decreased even more to 1.75%, indicating a significant decrease in profitability relative to previous years. This downward trend raises concerns about the company's operational effectiveness and ability to generate profits from its core business activities.
Nevertheless, there was a slight improvement by December 31, 2024, with the operating profit margin increasing to 7.32%. While this represents a recovery from the lowest point in 2023, it is still below the levels seen in the earlier years, signaling ongoing challenges in maintaining and expanding profitability through operations.
In conclusion, Advanced Micro Devices Inc's operating profit margin has shown fluctuations over the years, with notable improvements in some periods but also experiencing declines in profitability. It will be crucial for the company to address any underlying issues impacting operational efficiency to sustain and enhance its profit margins in the future.
Peer comparison
Dec 31, 2024