Advanced Micro Devices Inc (AMD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.08 | 0.17 | 0.20 | 0.21 |
| Debt-to-capital ratio | 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 | 0.15 | 0.29 | 0.35 | 0.36 |
| 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 |
| 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 |
The solvency ratios of Advanced Micro Devices Inc indicate the company's ability to meet its financial obligations and manage its debt levels. The debt-to-assets ratio has been relatively stable around 0.03 to 0.08 over the past five quarters, suggesting that the company has a low level of debt in relation to its total assets.
Similarly, the debt-to-capital and debt-to-equity ratios have shown a consistent trend, remaining within the range of 0.03 to 0.36 and 0.03 to 0.57, respectively. These ratios indicate that the company relies modestly on debt to finance its operations and has maintained a healthy balance between debt and equity in its capital structure.
The financial leverage ratio, which measures the extent to which the company relies on debt financing, has shown fluctuations but generally stayed between 1.21 and 2.76. This suggests that Advanced Micro Devices has been managing its financial leverage effectively, although there has been a slight increase in leverage over the quarters.
Overall, based on the solvency ratios, Advanced Micro Devices Inc appears to have a strong financial position with low debt levels and a reasonable mix of debt and equity in its capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 4.96 | 2.62 | 2.41 | 3.07 |
The interest coverage ratio for Advanced Micro Devices Inc fluctuated significantly over the past few quarters.
As of December 31, 2023, the interest coverage ratio was 5.79, indicating that the company's operating income was 5.79 times its interest expense. This suggests the company has a comfortable cushion to meet its interest obligations.
However, the interest coverage ratio had dropped to 1.05 by September 30, 2023, signaling a potential decrease in the company's ability to cover its interest payments with its operating income. This may raise concerns about the company's financial stability and ability to service its debt.
Looking back to June 30, 2023, the interest coverage ratio was negative at -2.15, indicating that the company's operating income was insufficient to cover its interest expenses. This suggests a serious financial strain and potential insolvency risk.
On the other hand, the interest coverage ratios of 14.61 on December 31, 2022, and 33.91 on September 30, 2022, reflect strong financial health and a comfortable ability to cover interest obligations.
It is important for Advanced Micro Devices Inc to maintain a healthy interest coverage ratio to demonstrate its ability to handle debt obligations and ensure long-term financial stability. The company should closely monitor its operational performance and debt levels to sustain a favorable interest coverage ratio in the future.