Advanced Micro Devices Inc (AMD)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,114,000 | 1,591,000 | 1,110,000 | 811,000 | 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 |
| Long-term debt | US$ in thousands | 1,721,000 | 1,720,000 | 1,719,000 | 1,718,000 | 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 |
| 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 |
| Return on total capital | 3.57% | 2.71% | 1.91% | 1.40% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,114,000K ÷ ($1,721,000K + $57,568,000K)
= 3.57%
Over the analyzed period starting from March 31, 2020, Advanced Micro Devices Inc's return on total capital exhibited fluctuating trends. The return on total capital increased from 17.50% as of March 31, 2020, reaching its peak at 49.47% as of December 31, 2021. This upward trend continued until June 30, 2022, after which it started to decline consistently.
From June 30, 2022, the return on total capital of Advanced Micro Devices Inc decreased from 6.35% to 2.71% as of September 30, 2024. However, the ratio reversed its declining trend in the subsequent quarters, increasing to 3.57% by the end of December 31, 2024.
The return on total capital serves as a key indicator of the company's efficiency in generating returns from its capital investments. The fluctuations observed in Advanced Micro Devices Inc's return on total capital signal changing financial performance and the effectiveness of its capital utilization strategies.
Further analysis and comparison with industry benchmarks and historical data may provide insights into the reasons behind the fluctuations and help evaluate the company's overall financial health and profitability.
Peer comparison
Dec 31, 2024