Advanced Micro Devices Inc (AMD)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 55,892,000 | 54,750,000 | 7,497,000 | 5,837,000 | 2,827,000 |
| Debt-to-capital ratio | 0.03 | 0.04 | 0.00 | 0.05 | 0.15 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,717,000K ÷ ($1,717,000K + $55,892,000K)
= 0.03
The debt-to-capital ratio for Advanced Micro Devices Inc has shown fluctuations over the years. In 2023, the ratio decreased to 0.03 from 0.04 in 2022, indicating a lower level of debt relative to the total capital structure. This could suggest improved financial health and lower financial risk for the company.
Comparing 2023 to 2021, where the ratio was 0.00, a significant increase in debt relative to total capital is evident. However, it is important to note that a debt-to-capital ratio of 0.00 may indicate that the company had no debt in its capital structure during that year, which can be a positive sign in terms of financial stability.
In 2020, the debt-to-capital ratio was 0.05, indicating a moderate level of debt in the capital structure compared to 2019 when the ratio was higher at 0.15. The decrease in the ratio from 2019 to 2020 suggests a positive trend of reducing debt or increasing equity in the company's capital mix.
Overall, the debt-to-capital ratio trend for Advanced Micro Devices Inc over the years reflects variations in the company's leverage and capital structure. The recent decrease in the ratio in 2023 may indicate a more conservative approach to managing debt levels, potentially improving the company's financial position and risk profile.
Peer comparison
Dec 31, 2023