Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Advanced Micro Devices Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020
Developed technology	13,408)	13,390)	12,360)	—)	—)
Customer relationships	12,324)	12,324)	12,324)	—)	—)
Customer backlog	809)	809)	809)	—)	—)
Corporate trade name	65)	65)	65)	—)	—)
Product trademarks	914)	914)	914)	—)	—)
Intangible assets subject to amortization, gross carrying amount	27,520)	27,502)	26,472)	—)	—)
Accumulated amortization	(8,752)	(6,359)	(3,548)	—)	—)
Intangible assets subject to amortization, net carrying amount	18,768)	21,143)	22,924)	—)	—)
In-process Research and Development (IPR&D) not subject to amortization	162)	220)	1,194)	—)	—)
Acquisition-related intangible assets	18,930)	21,363)	24,118)	—)	—)
Goodwill	24,839)	24,262)	24,177)	289)	289)
Acquisition-related intangible assets and goodwill	43,769)	45,625)	48,295)	289)	289)

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).

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Item	Description	The company
Acquisition-related intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Advanced Micro Devices Inc. acquisition-related intangible assets decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Advanced Micro Devices Inc. goodwill increased from 2022 to 2023 and from 2023 to 2024.
Acquisition-related intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Advanced Micro Devices Inc. acquisition-related intangible assets and goodwill decreased from 2022 to 2023 and from 2023 to 2024.

Advanced Micro Devices Inc., adjustments to financial statements

US$ in millions

	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020
Adjustment to Total Assets
Total assets (as reported)	69,226)	67,885)	67,580)	12,419)	8,962)
Less: Goodwill	24,839)	24,262)	24,177)	289)	289)
Total assets (adjusted)	44,387)	43,623)	43,403)	12,130)	8,673)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	57,568)	55,892)	54,750)	7,497)	5,837)
Less: Goodwill	24,839)	24,262)	24,177)	289)	289)
Stockholders’ equity (adjusted)	32,729)	31,630)	30,573)	7,208)	5,548)

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).

Advanced Micro Devices Inc., Financial Data: Reported vs. Adjusted

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Advanced Micro Devices Inc., adjusted financial ratios

	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020
Total Asset Turnover
Reported total asset turnover	0.37	0.33	0.35	1.32	1.09
Adjusted total asset turnover	0.58	0.52	0.54	1.35	1.13
Financial Leverage
Reported financial leverage	1.20	1.21	1.23	1.66	1.54
Adjusted financial leverage	1.36	1.38	1.42	1.68	1.56
Return on Equity (ROE)
Reported ROE	2.85%	1.53%	2.41%	42.18%	42.66%
Adjusted ROE	5.01%	2.70%	4.32%	43.87%	44.88%
Return on Assets (ROA)
Reported ROA	2.37%	1.26%	1.95%	25.46%	27.78%
Adjusted ROA	3.70%	1.96%	3.04%	26.07%	28.71%

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Advanced Micro Devices Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Advanced Micro Devices Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Advanced Micro Devices Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Advanced Micro Devices Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Advanced Micro Devices Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020
As Reported
Selected Financial Data (US$ in millions)
Net revenue	25,785)	22,680)	23,601)	16,434)	9,763)
Total assets	69,226)	67,885)	67,580)	12,419)	8,962)
Activity Ratio
Total asset turnover¹	0.37	0.33	0.35	1.32	1.09
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenue	25,785)	22,680)	23,601)	16,434)	9,763)
Adjusted total assets	44,387)	43,623)	43,403)	12,130)	8,673)
Activity Ratio
Adjusted total asset turnover²	0.58	0.52	0.54	1.35	1.13

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).

2024 Calculations

¹ Total asset turnover = Net revenue ÷ Total assets
= 25,785 ÷ 69,226 = 0.37

² Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 25,785 ÷ 44,387 = 0.58

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Advanced Micro Devices Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	69,226)	67,885)	67,580)	12,419)	8,962)
Stockholders’ equity	57,568)	55,892)	54,750)	7,497)	5,837)
Solvency Ratio
Financial leverage¹	1.20	1.21	1.23	1.66	1.54
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	44,387)	43,623)	43,403)	12,130)	8,673)
Adjusted stockholders’ equity	32,729)	31,630)	30,573)	7,208)	5,548)
Solvency Ratio
Adjusted financial leverage²	1.36	1.38	1.42	1.68	1.56

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 69,226 ÷ 57,568 = 1.20

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 44,387 ÷ 32,729 = 1.36

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Advanced Micro Devices Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	1,641)	854)	1,320)	3,162)	2,490)
Stockholders’ equity	57,568)	55,892)	54,750)	7,497)	5,837)
Profitability Ratio
ROE¹	2.85%	1.53%	2.41%	42.18%	42.66%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	1,641)	854)	1,320)	3,162)	2,490)
Adjusted stockholders’ equity	32,729)	31,630)	30,573)	7,208)	5,548)
Profitability Ratio
Adjusted ROE²	5.01%	2.70%	4.32%	43.87%	44.88%

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,641 ÷ 57,568 = 2.85%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 1,641 ÷ 32,729 = 5.01%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Advanced Micro Devices Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	1,641)	854)	1,320)	3,162)	2,490)
Total assets	69,226)	67,885)	67,580)	12,419)	8,962)
Profitability Ratio
ROA¹	2.37%	1.26%	1.95%	25.46%	27.78%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	1,641)	854)	1,320)	3,162)	2,490)
Adjusted total assets	44,387)	43,623)	43,403)	12,130)	8,673)
Profitability Ratio
Adjusted ROA²	3.70%	1.96%	3.04%	26.07%	28.71%

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,641 ÷ 69,226 = 2.37%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 1,641 ÷ 44,387 = 3.70%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Advanced Micro Devices Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Advanced Micro Devices Inc. (NASDAQ:AMD)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Advanced Micro Devices Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Advanced Micro Devices Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)