Advanced Micro Devices Inc (AMD)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 1,900,000 1,371,000 871,000 582,000 401,000 -90,000 -378,000 168,000 1,264,000 2,620,000 3,632,000 3,937,000 3,648,000 3,011,000 2,512,000 1,854,000 1,369,000 1,147,000 884,000 770,000
Total assets US$ in thousands 69,226,000 69,636,000 67,886,000 67,895,000 67,885,000 67,626,000 67,967,000 67,634,000 67,580,000 67,811,000 67,502,000 66,915,000 12,419,000 11,153,000 10,691,000 10,047,000 8,962,000 7,023,000 6,583,000 5,864,000
Operating ROA 2.74% 1.97% 1.28% 0.86% 0.59% -0.13% -0.56% 0.25% 1.87% 3.86% 5.38% 5.88% 29.37% 27.00% 23.50% 18.45% 15.28% 16.33% 13.43% 13.13%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,900,000K ÷ $69,226,000K
= 2.74%

The operating return on assets (Operating ROA) of Advanced Micro Devices Inc has shown fluctuations over the analyzed period. The trend indicates a generally positive performance from March 31, 2020, to September 30, 2021, with a consistent increase in the Operating ROA reaching its peak at 29.37% on December 31, 2021. However, from March 31, 2022, to December 31, 2024, the Operating ROA experienced a decline, dropping to 2.74% on December 31, 2024.

The significant increase in Operating ROA until September 30, 2021, suggests improved efficiency in generating profits from its assets during that period. Subsequently, the decreasing trend may indicate challenges in asset utilization or declining profitability relative to the size of the asset base.

It would be essential to further investigate the factors contributing to the fluctuation in Operating ROA post-2021 to determine the root causes of the declining performance and assess the company's strategies to enhance asset efficiency and profitability in the future.