Advanced Micro Devices Inc (AMD)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,641,000	854,000	1,320,000	3,162,000	2,490,000
Total assets	US$ in thousands	69,226,000	67,885,000	67,580,000	12,419,000	8,962,000
ROA		2.37%	1.26%	1.95%	25.46%	27.78%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,641,000K ÷ $69,226,000K
= 2.37%

Advanced Micro Devices Inc's Return on Assets (ROA) has displayed a declining trend over the years, moving from 27.78% as of December 31, 2020, to 2.37% as of December 31, 2024. This indicates a decreasing ability of the company to generate profits relative to its total assets employed. The significant drop in ROA suggests a potential inefficiency in asset utilization and overall operational performance. It is essential for the company to evaluate and possibly improve its asset management strategies to enhance profitability and long-term sustainability.