Advanced Micro Devices Inc (AMD)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 508,000 | 1,198,000 | 3,675,000 | 1,280,000 | 372,000 |
| Revenue | US$ in thousands | 22,875,000 | 23,650,000 | 16,401,000 | 9,684,000 | 6,528,000 |
| Pretax margin | 2.22% | 5.07% | 22.41% | 13.22% | 5.70% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $508,000K ÷ $22,875,000K
= 2.22%
The pretax margin of Advanced Micro Devices Inc has shown fluctuating trends over the past five years. In 2023, the pretax margin decreased to 2.22% from 5.07% in the previous year, reflecting a decline in the company's profitability before accounting for taxes. This decrease may indicate challenges in managing operating expenses relative to revenue generation.
Compared to the significant pretax margin of 22.41% in 2021, the recent decline suggests a substantial reduction in profitability. The pretax margin in 2020 and 2019 was 13.22% and 5.70%, respectively, showcasing variations in the company's performance over the years.
The declining trend in pretax margin raises concerns about the company's operating efficiency and cost management strategies. Investors and stakeholders may closely monitor future financial performance to assess the company's ability to sustain profitability in the competitive semiconductor industry.
Peer comparison
Dec 31, 2023