Advanced Micro Devices Inc (AMD)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,717,000	2,467,000	1,000	330,000	486,000
Total assets	US$ in thousands	67,885,000	67,580,000	12,419,000	8,962,000	6,028,000
Debt-to-assets ratio		0.03	0.04	0.00	0.04	0.08

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,717,000K ÷ $67,885,000K
= 0.03

The debt-to-assets ratio for Advanced Micro Devices Inc has exhibited varying trends over the past five years. In 2023, the ratio stands at 0.03, representing a decrease from the previous year's 0.04. This suggests that the company's level of debt in relation to its total assets has slightly improved, indicating a stronger financial position in terms of debt management. Comparing this to 2021 where the ratio was 0.00, it is evident that the company had no debt relative to its assets in that year.

However, the ratios for 2022, 2020, and 2019 were higher at 0.04, 0.04, and 0.08, respectively. This indicates that in those years, a higher proportion of the company's assets were financed by debt, which could potentially pose increased financial risk. The significant drop from 0.08 in 2019 to 0.00 in 2021 shows a substantial improvement in the company's debt management and financial stability.

Overall, the decreasing trend in the debt-to-assets ratio from 2019 to 2023 suggests that Advanced Micro Devices Inc has been actively reducing its reliance on debt to finance its operations and investments, leading to a healthier balance sheet and improved financial leverage.