Advanced Micro Devices Inc. (NASDAQ:AMD)

The analysis of the annual financial data reveals significant shifts in the composition of assets over the observed periods.

Cash and Cash Equivalents

There is a notable decline from 17.8% in 2020 to approximately 5.5% by 2024, indicating a reduction in liquid assets relative to total assets over time.

Short-term Investments

The percentage of total assets held as short-term investments decreases from 7.75% in 2020 to levels below 2% by 2024, exhibiting a diminishing focus on short-term securities.

Accounts Receivable, Net

Shows a sharp decline from 23.05% in 2020 to a low point around 6.1% in 2022, followed by a gradual increase to 8.94% in 2024. This pattern suggests a reduction in credit sales or improved collections in the early years, with a slight reversal later.

Inventories

Marked reduction from 15.61% in 2020 to below 6% in 2022, with subsequent increases reaching 8.28% by 2024, indicating inventory levels decreased substantially before recovering moderately.

Receivables from Related Parties

Remain minimal throughout, generally under 0.2%, reflecting insignificant intercompany receivables relative to total assets.

Unbilled Receivables

Reported starting in 2023 at 1.55%, declining to 0.91% in 2024, suggesting a small portion of revenue recognized but not yet billed during these years.

Other and Prepaid Expenses & Other Current Assets

Other assets decline from above 4% to under 2% over the period, while prepaid expenses fluctuate, initially decreasing but rising to 3.41% in 2023 before slightly dropping again, showing variable management of current asset components.

Current Assets

Exhibit a significant contraction from nearly 69% in 2021 to roughly 22% in 2022, then recovering slightly to 27.52% in 2024. This major shift reflects an asset base transformation from current to non-current assets.

Property and Equipment, Net

Declines steadily from 7.15% in 2020 to about 2.6% in 2024, indicating reduced investment or asset base in tangible fixed assets.

Operating Lease Right-of-use Assets

Starts at low levels (2.32%) and reduces further to below 1% by 2024, suggesting decreasing lease asset presence.

Goodwill

Remains low around 2-3% until 2021, then spikes significantly to over 35% in 2022 and maintains this level, implying a major acquisition or change in asset valuation occurred between 2021 and 2022.

Acquisition-related Intangibles

Not reported until 2022, appearing at 35.69% and gradually declining to 27.35% in 2024, supporting the inference of a large acquisition impacting intangible assets starting in 2022.

Investment: Equity Method

Consistently a minor component, below 1%, with no meaningful trend.

Deferred Tax Assets

Drops drastically from 13.89% in 2020 to near zero by 2022, then shows small recovery to about 1% in 2024, reflecting possible changes in tax position or utilization of deferred tax assets.

Other Non-current Assets

Fluctuate notably, peaking at nearly 12% in 2021, then decreasing and stabilizing around 4.5% by 2024, indicating some reclassification or reduction in certain non-current asset categories.

Non-current Assets

Comprise around 30% of total assets in 2020 and 2021, then increase dramatically to over 75% by 2022 onward, reflecting a structural shift favoring long-term asset holdings, primarily due to goodwill and acquisition-related intangibles.

Total Assets

Maintain the reference value of 100% throughout the periods, as expected.

In summary, the data depict a pronounced transformation of asset composition between 2021 and 2022, characterized by a steep decline in current assets and a concurrent surge in goodwill and acquisition-related intangible assets. This likely results from a significant acquisition or change in accounting recognition. Concurrent decreases in cash, inventories, property and equipment, and deferred tax assets complement this overall reallocation of resources. Subsequent years show stabilization with moderate reversals in some categories such as accounts receivable and inventories, but the dominance of intangible assets remains a defining feature.