Advanced Micro Devices Inc (AMD)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 67,885,000 | 67,580,000 | 12,419,000 | 8,962,000 | 6,028,000 |
| Operating ROA | 0.59% | 1.87% | 29.37% | 15.28% | 10.47% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $401,000K ÷ $67,885,000K
= 0.59%
The operating return on assets (ROA) of Advanced Micro Devices Inc has shown volatility over the past five years. In 2023, the operating ROA decreased significantly to 0.59% from 1.87% in 2022. This decline may indicate challenges in generating operating income relative to its total assets in the most recent fiscal year.
Looking back, the operating ROA was exceptionally high in 2021 at 29.37%, reflecting a strong ability to generate operating profits from its asset base. This high ROA in 2021 may have been driven by efficient asset utilization, effective cost management, or increased profitability.
In the preceding years, the company's operating ROA showed a decreasing trend from 2019 to 2020 before a significant surge in 2021. The operating ROA was 15.28% in 2020 and 10.47% in 2019, indicating a temporary decline in profitability in 2020 followed by a recovery and improvement in 2021.
In conclusion, the fluctuation in Advanced Micro Devices Inc's operating ROA over the five-year period suggests varying levels of efficiency in generating operating income from its assets. Investors and analysts may want to further investigate the factors driving these changes to assess the company's operational performance and financial health.
Peer comparison
Dec 31, 2023