Advanced Micro Devices Inc (AMD)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 69,226,000 | 67,885,000 | 67,580,000 | 12,419,000 | 8,962,000 |
| Total stockholders’ equity | US$ in thousands | 57,568,000 | 55,892,000 | 54,750,000 | 7,497,000 | 5,837,000 |
| Financial leverage ratio | 1.20 | 1.21 | 1.23 | 1.66 | 1.54 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $69,226,000K ÷ $57,568,000K
= 1.20
The financial leverage ratio of Advanced Micro Devices Inc has shown a fluctuating trend over the past five years. Starting at 1.54 in December 2020, the ratio increased to 1.66 by December 2021, indicating a higher level of financial leverage. However, in the subsequent years, the ratio decreased to 1.23 by December 2022, 1.21 by December 2023, and further declined to 1.20 by December 2024.
This decreasing trend suggests that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio indicates a lower level of debt relative to equity, which can be viewed positively by investors and creditors as it implies a more conservative capital structure. Advanced Micro Devices Inc's management may have been focusing on deleveraging and improving the company's financial stability over the years.
Peer comparison
Dec 31, 2024