Advanced Micro Devices Inc (AMD)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 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 | 0.17 | 0.40 | 0.54 | 0.57 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,717,000K ÷ $55,892,000K
= 0.03
The debt-to-equity ratio of Advanced Micro Devices Inc has shown a decreasing trend over the past few quarters, indicating a lower reliance on debt financing compared to equity. The ratio has consistently remained low recently, with values around 0.03 to 0.05, suggesting a conservative capital structure.
In the earlier periods, notably in 2019 and 2020, the company's debt-to-equity ratio was significantly higher, reaching levels of 0.40 to 0.57. This could indicate higher debt levels relative to equity during that time, potentially bringing higher financial risk.
The decreasing trend in the debt-to-equity ratio in the more recent quarters suggests that the company may have been paying off debt or adopting a more equity-focused financing strategy. This shift towards a lower debt-to-equity ratio can be a positive sign as it indicates a more stable financial position and reduced financial risk for the company.
Overall, the consistent decrease in the debt-to-equity ratio of Advanced Micro Devices Inc reflects a more balanced and prudent approach towards capital structure management in recent periods.
Peer comparison
Dec 31, 2023