Advanced Micro Devices Inc (AMD)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,022,000 | 508,000 | 1,198,000 | 3,675,000 | 1,280,000 |
| Revenue | US$ in thousands | 25,967,000 | 22,875,000 | 23,650,000 | 16,401,000 | 9,684,000 |
| Pretax margin | 7.79% | 2.22% | 5.07% | 22.41% | 13.22% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $2,022,000K ÷ $25,967,000K
= 7.79%
The pretax margin of Advanced Micro Devices Inc has shown fluctuations over the past five years. Starting at 13.22% on December 31, 2020, the pretax margin increased to 22.41% by December 31, 2021, indicating improved profitability. However, there was a significant decline to 5.07% by December 31, 2022, which may raise concerns about the company's cost management or revenue generation during that period.
Further, the pretax margin continued to drop to 2.22% by December 31, 2023, hitting a low point. This downward trend suggests potential inefficiencies in operations or cost structures that could impact the company's overall profitability.
By December 31, 2024, the pretax margin recovered slightly to 7.79%, indicating some improvement from the previous year. It is essential for stakeholders to closely monitor this metric to ensure that the company's profitability remains on a sustainable path.
Overall, fluctuations in Advanced Micro Devices Inc's pretax margin over the analyzed period demonstrate the importance of effective cost control, revenue growth strategies, and overall financial management to maintain and enhance profitability.
Peer comparison
Dec 31, 2024