Advanced Micro Devices Inc (AMD)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	1,641,000	1,826,000	1,354,000	1,116,000	854,000	208,000	-25,000	395,000	1,320,000	2,273,000	3,130,000	3,393,000	3,162,000	3,969,000	3,436,000	2,883,000	2,490,000	879,000	609,000	487,000
Total stockholders’ equity	US$ in thousands	57,568,000	56,985,000	56,538,000	56,198,000	55,892,000	54,970,000	55,136,000	54,694,000	54,750,000	54,542,000	55,169,000	55,333,000	7,497,000	7,136,000	7,065,000	6,477,000	5,837,000	3,867,000	3,305,000	3,037,000
ROE		2.85%	3.20%	2.39%	1.99%	1.53%	0.38%	-0.05%	0.72%	2.41%	4.17%	5.67%	6.13%	42.18%	55.62%	48.63%	44.51%	42.66%	22.73%	18.43%	16.04%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,641,000K ÷ $57,568,000K
= 2.85%

Advanced Micro Devices Inc's return on equity (ROE) has displayed fluctuating performance over the years, starting from a solid 16.04% in March 2020 and showing steady growth to reach a peak of 55.62% in September 2021. This period highlighted a strong profitability and efficiency in generating earnings from shareholder equity.

However, in the later periods from March 2022 to December 2024, the ROE experienced a declining trend from 6.13% to 2.85%. This decline suggests a decrease in the company's ability to generate profits from the shareholders' investments.

Overall, while AMD's ROE experienced significant growth in the earlier years, it is important to monitor the recent declining trend to understand the factors impacting the company's profitability and efficiency in the utilization of shareholder funds. Further analysis would be necessary to determine the underlying reasons for the changing ROE and to assess the company's financial health and performance.