Advanced Micro Devices Inc (AMD)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 631,000 | 311,000 | 275,000 | 369,000 |
| Total assets | US$ in thousands | 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 | 6,028,000 | 5,253,000 | 5,102,000 | 4,931,000 |
| Operating ROA | 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% | 10.47% | 5.92% | 5.39% | 7.48% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $401,000K ÷ $67,885,000K
= 0.59%
Operating return on assets (ROA) is a key profitability ratio that indicates how well a company generates profits from its assets utilized in its operations. The trend in Advanced Micro Devices Inc's operating ROA over the past few quarters shows fluctuations in performance.
In the most recent quarter, ending December 31, 2023, the operating ROA was at 0.59%, indicating that the company generated a profit of 0.59% for every dollar of assets employed in its operations. This marked a slight improvement compared to the previous quarter's negative operating ROA of -0.13%.
Looking back over the past year, Advanced Micro Devices Inc's operating ROA has shown varying levels of performance. The trend generally seems to be declining since the peak in the first quarter of 2021, where the operating ROA stood at 29.37%. Since then, there has been a gradual decrease in profitability efficiency, with intermittent spikes and drops in the ratio.
It is crucial for the company to closely monitor and manage its assets efficiently to improve profitability. Fluctuations in operating ROA could be influenced by factors such as changes in operational efficiency, asset utilization, revenue generation, or cost management within the business.
In conclusion, Advanced Micro Devices Inc's operating ROA has been inconsistent over the past few quarters, highlighting the importance of enhancing operational effectiveness and maximizing asset utilization to drive sustainable profitability in the future.
Peer comparison
Dec 31, 2023