Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Advanced Micro Devices Inc., ROIC calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 621) | (201) | (138) | 3,517) | 1,330) | |
| Invested capital2 | 58,227) | 57,883) | 58,525) | 6,195) | 4,364) | |
| Performance Ratio | ||||||
| ROIC3 | 1.07% | -0.35% | -0.24% | 56.77% | 30.47% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Analog Devices Inc. | 3.09% | 7.11% | 5.76% | 2.37% | 6.95% | |
| Applied Materials Inc. | 28.75% | 36.75% | 46.34% | 41.96% | 29.68% | |
| Broadcom Inc. | 7.86% | 23.04% | 20.76% | 11.02% | 4.80% | |
| Intel Corp. | -14.19% | -1.60% | 4.14% | 22.03% | 28.01% | |
| KLA Corp. | 36.99% | 40.63% | 42.51% | 31.64% | 19.88% | |
| Lam Research Corp. | 21.94% | 27.10% | 41.68% | 37.13% | 20.36% | |
| Micron Technology Inc. | 1.61% | -11.01% | 17.20% | 12.88% | 6.84% | |
| Monolithic Power Systems Inc. | — | 27.75% | 33.83% | 36.35% | 25.23% | |
| NVIDIA Corp. | 89.32% | 10.91% | 53.12% | 33.44% | 19.63% | |
| Qualcomm Inc. | 26.75% | 18.69% | 45.12% | 42.56% | 27.48% | |
| Texas Instruments Inc. | 19.20% | 28.83% | 49.74% | 48.28% | 43.48% | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 621 ÷ 58,227 = 1.07%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Advanced Micro Devices Inc. ROIC deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Decomposition of ROIC
Advanced Micro Devices Inc., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
Operating Profit Margin (OPM)
Advanced Micro Devices Inc., OPM calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 621) | (201) | (138) | 3,517) | 1,330) | |
| Add: Cash operating taxes2 | 1,531) | 658) | 1,392) | 214) | 24) | |
| Net operating profit before taxes (NOPBT) | 2,152) | 457) | 1,254) | 3,731) | 1,354) | |
| Net revenue | 25,785) | 22,680) | 23,601) | 16,434) | 9,763) | |
| Profitability Ratio | ||||||
| OPM3 | 8.35% | 2.02% | 5.31% | 22.70% | 13.87% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Analog Devices Inc. | 20.23% | 32.00% | 27.59% | 20.52% | 26.98% | |
| Applied Materials Inc. | 29.32% | 29.22% | 30.32% | 30.54% | 25.67% | |
| Broadcom Inc. | 26.39% | 45.19% | 42.94% | 31.06% | 17.10% | |
| Intel Corp. | -21.05% | -0.86% | 13.58% | 28.05% | 32.68% | |
| KLA Corp. | 37.54% | 39.78% | 41.73% | 36.39% | 26.09% | |
| Lam Research Corp. | 27.18% | 28.38% | 35.59% | 34.25% | 27.26% | |
| Micron Technology Inc. | 5.12% | -36.77% | 31.50% | 23.15% | 14.37% | |
| Monolithic Power Systems Inc. | — | 26.12% | 28.64% | 22.75% | 19.51% | |
| NVIDIA Corp. | 55.52% | 15.97% | 37.99% | 28.45% | 26.65% | |
| Qualcomm Inc. | 26.67% | 21.48% | 35.06% | 30.10% | 24.17% | |
| Texas Instruments Inc. | 38.37% | 44.51% | 51.22% | 49.60% | 43.13% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
OPM = 100 × NOPBT ÷ Net revenue
= 100 × 2,152 ÷ 25,785 = 8.35%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Advanced Micro Devices Inc. OPM deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Turnover of Capital (TO)
Advanced Micro Devices Inc., TO calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 25,785) | 22,680) | 23,601) | 16,434) | 9,763) | |
| Invested capital1 | 58,227) | 57,883) | 58,525) | 6,195) | 4,364) | |
| Efficiency Ratio | ||||||
| TO2 | 0.44 | 0.39 | 0.40 | 2.65 | 2.24 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Analog Devices Inc. | 0.22 | 0.28 | 0.27 | 0.16 | 0.31 | |
| Applied Materials Inc. | 1.23 | 1.49 | 1.73 | 1.57 | 1.31 | |
| Broadcom Inc. | 0.37 | 0.57 | 0.53 | 0.42 | 0.36 | |
| Intel Corp. | 0.58 | 0.59 | 0.71 | 0.89 | 0.95 | |
| KLA Corp. | 1.17 | 1.26 | 1.18 | 1.01 | 0.89 | |
| Lam Research Corp. | 0.99 | 1.14 | 1.35 | 1.24 | 0.86 | |
| Micron Technology Inc. | 0.47 | 0.29 | 0.58 | 0.60 | 0.51 | |
| Monolithic Power Systems Inc. | — | 1.23 | 1.46 | 1.77 | 1.33 | |
| NVIDIA Corp. | 1.98 | 1.26 | 1.49 | 1.28 | 0.77 | |
| Qualcomm Inc. | 1.26 | 1.14 | 1.50 | 1.66 | 1.33 | |
| Texas Instruments Inc. | 0.60 | 0.78 | 1.14 | 1.12 | 1.12 | |
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).
1 Invested capital. See details »
2 2024 Calculation
TO = Net revenue ÷ Invested capital
= 25,785 ÷ 58,227 = 0.44
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Advanced Micro Devices Inc. TO deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Effective Cash Tax Rate (CTR)
Advanced Micro Devices Inc., CTR calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 621) | (201) | (138) | 3,517) | 1,330) | |
| Add: Cash operating taxes2 | 1,531) | 658) | 1,392) | 214) | 24) | |
| Net operating profit before taxes (NOPBT) | 2,152) | 457) | 1,254) | 3,731) | 1,354) | |
| Tax Rate | ||||||
| CTR3 | 71.15% | 143.92% | 111.01% | 5.73% | 1.76% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Analog Devices Inc. | 29.57% | 20.23% | 21.73% | 25.70% | 16.31% | |
| Applied Materials Inc. | 20.15% | 15.68% | 11.76% | 12.33% | 12.01% | |
| Broadcom Inc. | 18.62% | 10.78% | 9.59% | 16.44% | 22.63% | |
| Intel Corp. | — | — | 57.13% | 12.07% | 9.78% | |
| KLA Corp. | 15.45% | 18.86% | 13.88% | 14.30% | 14.62% | |
| Lam Research Corp. | 18.07% | 16.15% | 13.55% | 12.57% | 13.09% | |
| Micron Technology Inc. | 33.29% | — | 6.38% | 6.96% | 6.13% | |
| Monolithic Power Systems Inc. | — | 13.92% | 18.92% | 9.60% | 2.72% | |
| NVIDIA Corp. | 18.77% | 45.94% | 6.28% | 8.10% | 4.59% | |
| Qualcomm Inc. | 20.47% | 23.51% | 14.27% | 14.84% | 14.19% | |
| Texas Instruments Inc. | 16.30% | 16.49% | 14.83% | 12.93% | 9.63% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,531 ÷ 2,152 = 71.15%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Advanced Micro Devices Inc. CTR increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |