Advanced Micro Devices Inc (AMD)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 614,000 | 1,286,000 | 3,709,000 | 1,327,000 | 466,000 |
| Interest expense | US$ in thousands | 106,000 | 88,000 | 34,000 | 47,000 | 94,000 |
| Interest coverage | 5.79 | 14.61 | 109.09 | 28.23 | 4.96 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $614,000K ÷ $106,000K
= 5.79
The interest coverage ratio for Advanced Micro Devices Inc has shown fluctuations over the past five years. In 2023, the interest coverage ratio stood at 5.79, indicating the company's ability to cover its interest expenses by operating income decreased compared to the previous year. In 2022, the ratio was relatively high at 14.61, suggesting the company had a strong ability to meet its interest obligations from its operating earnings.
The interest coverage ratio experienced a substantial increase in 2021, reaching 109.09, signifying a significant improvement in the company's ability to cover its interest expenses. This sharp rise could indicate a substantial increase in operating income compared to the previous year. In 2020, the interest coverage ratio was 28.23, also demonstrating a strong ability to service its interest payments.
In 2019, the interest coverage ratio was 4.96, showing a lower ability to cover interest expenses compared to the subsequent years. Overall, while the interest coverage ratio of Advanced Micro Devices Inc has varied, it generally indicates the company's capability to meet its interest obligations from its operating earnings, with fluctuations in operating income impacting the ratio from year to year.
Peer comparison
Dec 31, 2023