Advanced Micro Devices Inc (AMD)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 854,000 | 1,320,000 | 3,162,000 | 2,490,000 | 341,000 |
| Total assets | US$ in thousands | 67,885,000 | 67,580,000 | 12,419,000 | 8,962,000 | 6,028,000 |
| ROA | 1.26% | 1.95% | 25.46% | 27.78% | 5.66% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $854,000K ÷ $67,885,000K
= 1.26%
Advanced Micro Devices Inc's return on assets (ROA) has exhibited fluctuations over the past five years. In 2019, the ROA was at 5.66%, which then increased significantly to 27.78% in 2020, reflecting a substantial improvement in the company's ability to generate profit relative to its assets. The trend continued in 2021, with an even higher ROA of 25.46%, indicating continued strong performance.
However, in 2022 and 2023, there was a noticeable decline in ROA to 1.95% and 1.26%, respectively. This downward trend suggests that the company may be facing challenges in utilizing its assets efficiently to generate profits during these years.
Overall, Advanced Micro Devices Inc's ROA performance has been volatile, with significant fluctuations in recent years. It would be important to further investigate the factors contributing to these fluctuations in order to assess the company's financial health and efficiency in utilizing its assets.
Peer comparison
Dec 31, 2023