Advanced Micro Devices Inc (AMD)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 614,000 | 103,000 | -221,000 | 273,000 | 1,286,000 | 2,611,000 | 3,661,000 | 3,968,000 | 3,709,000 | 3,056,000 | 2,457,000 | 1,799,000 | 1,327,000 | 992,000 | 730,000 | 617,000 | 466,000 | 275,000 | 268,000 | 359,000 |
| Long-term debt | US$ in thousands | 1,717,000 | 1,715,000 | 1,714,000 | 2,467,000 | 2,467,000 | 2,466,000 | 2,465,000 | 1,475,000 | 1,000 | 1,000 | 313,000 | 313,000 | 330,000 | 373,000 | 490,000 | 488,000 | 486,000 | 872,000 | 1,031,000 | 1,024,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,827,000 | 2,176,000 | 1,901,000 | 1,788,000 |
| Return on total capital | 1.07% | 0.18% | -0.39% | 0.48% | 2.25% | 4.58% | 6.35% | 6.98% | 49.47% | 42.82% | 33.30% | 26.49% | 21.52% | 23.40% | 19.24% | 17.50% | 14.07% | 9.02% | 9.14% | 12.77% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $614,000K ÷ ($1,717,000K + $55,892,000K)
= 1.07%
Advanced Micro Devices Inc's return on total capital has shown fluctuations over the given period. The return on total capital ranged from as low as -0.39% to as high as 49.47%. There is a general declining trend in the return on total capital from the highs of 2019 and early 2020 to the recent figures in 2023. This indicates that the company's ability to generate profits from its total capital investment has shown variability and has not been consistently increasing over time. It suggests that the company may have faced challenges in efficiently utilizing its total capital resources to generate returns for its shareholders. Further analysis and comparison with industry peers would provide a better understanding of AMD's performance in this aspect.
Peer comparison
Dec 31, 2023