Advanced Micro Devices Inc (AMD)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 55,892,000 | 54,750,000 | 7,497,000 | 5,837,000 | 2,827,000 |
| ROE | 1.53% | 2.41% | 42.18% | 42.66% | 12.06% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $854,000K ÷ $55,892,000K
= 1.53%
Advanced Micro Devices Inc's return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE stands at 1.53%, a decrease from 2.41% in 2022. This decline suggests a decrease in the company's profitability in generating returns for its shareholders compared to the previous year.
The significant drop in ROE from 2021 to 2022 is notable, where the ROE decreased from 42.18% to 2.41%. This sharp decline could indicate a decrease in the company's efficiency in utilizing shareholders' equity to generate profits during that period.
However, looking at the trend from 2020 to 2021, there was a substantial increase in ROE from 42.66% to 42.18%. This improvement indicates that in 2021, the company was more effective in utilizing its equity to generate profit compared to the previous year.
In 2019, the ROE stood at 12.06%, which was relatively lower than the following years but still above the 10% benchmark usually expected by investors. This indicates that the company was efficiently utilizing its equity to generate returns for shareholders in 2019.
Overall, it is important for investors and stakeholders to closely monitor AMD's ROE trend to assess the company's ability to generate profits from shareholders' equity effectively.
Peer comparison
Dec 31, 2023