Advanced Micro Devices Inc (AMD)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.05 | 0.05 | 0.05 | 0.04 | 0.03 | 0.00 | 0.00 | 0.04 | 0.05 | 0.06 | 0.10 | 0.15 | 0.16 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,721,000K ÷ $57,568,000K
= 0.03
The debt-to-equity ratio of Advanced Micro Devices Inc has shown a decreasing trend over the past few years, indicating a strengthening financial position in terms of leverage.
As of December 31, 2024, the company's debt-to-equity ratio stood at 0.03, implying that the company had a relatively low level of debt compared to its equity. This suggests that AMD's reliance on debt to finance its operations and growth has been minimal, which can be viewed positively by investors and creditors.
The consistent decrease in the debt-to-equity ratio from 0.16 in March 2020 to 0.03 in December 2024 reflects management's efforts to reduce debt levels and strengthen the company's financial stability. This may indicate effective financial management and a conservative approach to capital structure.
Overall, the declining trend in the debt-to-equity ratio of Advanced Micro Devices Inc signals a healthy balance between debt and equity, which could enhance the company's ability to weather economic downturns and pursue growth opportunities in the future.
Peer comparison
Dec 31, 2024