Advanced Micro Devices Inc (AMD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.02 | 0.00 | 0.00 | 0.03 | 0.03 | 0.04 | 0.05 | 0.07 | 0.08 |
| Debt-to-capital ratio | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | 0.00 | 0.00 | 0.04 | 0.05 | 0.05 | 0.09 | 0.13 | 0.14 |
| 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 |
| Financial leverage ratio | 1.20 | 1.22 | 1.20 | 1.21 | 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 |
Advanced Micro Devices Inc has shown consistent improvement in its solvency ratios over the past few years. The Debt-to-assets ratio has decreased steadily from 0.08 in March 2020 to 0.02 in December 2024, indicating a lower reliance on debt to finance its assets.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also shown a declining trend, reflecting a reduced dependency on debt in relation to the company's capital and equity base. The Debt-to-capital ratio decreased from 0.14 in March 2020 to 0.03 in December 2024, while the Debt-to-equity ratio dropped from 0.16 to 0.03 during the same period.
The Financial leverage ratio, which measures the company's debt to equity relationship, has also exhibited a decreasing pattern, indicating a strengthening financial position. The ratio decreased from 1.93 in March 2020 to 1.20 in December 2024, reflecting lower financial risk and better solvency.
Overall, the solvency ratios of Advanced Micro Devices Inc demonstrate a positive trajectory, showcasing improved financial health and a stronger balance sheet over the analyzed period.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 22.98 | 15.91 | 10.78 | 7.65 | 5.79 | 1.05 | -2.15 | 2.73 | 14.61 | 33.91 | 69.08 | 104.42 | 109.09 | 87.31 | 63.00 | 41.84 | 28.23 | 17.71 | 10.58 | 7.71 |
The interest coverage ratio of Advanced Micro Devices Inc has shown a generally increasing trend from March 31, 2020, to December 31, 2021, indicating the company's ability to meet its interest obligations comfortably. The ratio increased significantly from 7.71 on March 31, 2020, to 109.09 on December 31, 2021. This improvement suggests that the company's operating income was more than sufficient to cover its interest expenses during this period.
However, after reaching its peak at 109.09 on December 31, 2021, the interest coverage ratio started decreasing. The ratio declined to 22.98 on December 31, 2024. This downward trend could be a cause for concern as it may indicate that the company's ability to meet its interest payments has weakened.
The interest coverage ratio falling below 1 on June 30, 2023, and September 30, 2023, suggests that the company may have faced challenges in generating enough operating income to cover its interest expenses during these quarters. This situation could potentially raise questions about the company's financial stability and solvency.
Overall, while the interest coverage ratio of Advanced Micro Devices Inc has shown fluctuations, investors may need to closely monitor this ratio to ensure the company's ability to cover its interest payments in the future.