Advanced Micro Devices Inc (AMD)

Financial leverage 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
Total assets	US$ in thousands	67,885,000	67,626,000	67,967,000	67,634,000	67,580,000	67,811,000	67,502,000	66,915,000	12,419,000	11,153,000	10,691,000	10,047,000	8,962,000	7,023,000	6,583,000	5,864,000	6,028,000	5,253,000	5,102,000	4,931,000
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
Financial leverage ratio		1.21	1.23	1.23	1.24	1.23	1.24	1.22	1.21	1.66	1.56	1.51	1.55	1.54	1.82	1.99	1.93	2.13	2.41	2.68	2.76

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $67,885,000K ÷ $55,892,000K
= 1.21

The financial leverage ratio of Advanced Micro Devices Inc has shown fluctuations over the past few years, indicating changes in the company's debt levels relative to its equity. The trend reveals that the company's leverage ratio was relatively stable around 1.2 to 1.3 from the end of 2020 to mid-2023, suggesting a balanced mix of debt and equity in its capital structure during this period.

However, a significant spike in the financial leverage ratio was observed at the end of 2021, reaching 1.66, indicating a higher proportion of debt compared to equity at that time. Subsequently, the ratio gradually decreased but remained above the historical average until mid-2022 when it started to decline towards the 1.2-1.3 range again.

The surge in the financial leverage ratio in late 2021 and its subsequent decline could imply that the company possibly took on more debt for a specific reason, such as funding acquisitions or capital expenditures. It seems that the management has taken steps to reduce the leverage ratio back to more stable levels over time.

The latest ratio of 1.21 as of the end of 2023 suggests that the company has returned to a more balanced debt-to-equity mix in its capital structure. Investors and analysts may monitor future changes in the financial leverage ratio to assess the company's risk exposure and financial health.