Stock Analysis on Net
Stock Analysis on Net

Advanced Micro Devices Inc. (NASDAQ:AMD)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Advanced Micro Devices Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 28, 2024 3.20% = 2.62% × 1.22
Jun 29, 2024 2.39% = 1.99% × 1.20
Mar 30, 2024 1.99% = 1.64% × 1.21
Dec 30, 2023 1.53% = 1.26% × 1.21
Sep 30, 2023 0.38% = 0.31% × 1.23
Jul 1, 2023 -0.05% = -0.04% × 1.23
Apr 1, 2023 0.72% = 0.58% × 1.24
Dec 31, 2022 2.41% = 1.95% × 1.23
Sep 24, 2022 4.17% = 3.35% × 1.24
Jun 25, 2022 5.67% = 4.64% × 1.22
Mar 26, 2022 6.13% = 5.07% × 1.21
Dec 25, 2021 42.18% = 25.46% × 1.66
Sep 25, 2021 55.62% = 35.59% × 1.56
Jun 26, 2021 48.63% = 32.14% × 1.51
Mar 27, 2021 44.51% = 28.70% × 1.55
Dec 26, 2020 42.66% = 27.78% × 1.54
Sep 26, 2020 22.73% = 12.52% × 1.82
Jun 27, 2020 18.43% = 9.25% × 1.99
Mar 28, 2020 16.04% = 8.30% × 1.93
Dec 28, 2019 12.06% = 5.66% × 2.13
Sep 28, 2019 — = — × 2.41
Jun 29, 2019 — = — × 2.68
Mar 30, 2019 — = — × 2.76

Based on: 10-Q (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Advanced Micro Devices Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 28, 2024 3.20% = 7.52% × 0.35 × 1.22
Jun 29, 2024 2.39% = 5.82% × 0.34 × 1.20
Mar 30, 2024 1.99% = 4.89% × 0.34 × 1.21
Dec 30, 2023 1.53% = 3.77% × 0.33 × 1.21
Sep 30, 2023 0.38% = 0.94% × 0.33 × 1.23
Jul 1, 2023 -0.05% = -0.11% × 0.32 × 1.23
Apr 1, 2023 0.72% = 1.71% × 0.34 × 1.24
Dec 31, 2022 2.41% = 5.59% × 0.35 × 1.23
Sep 24, 2022 4.17% = 9.96% × 0.34 × 1.24
Jun 25, 2022 5.67% = 14.51% × 0.32 × 1.22
Mar 26, 2022 6.13% = 17.98% × 0.28 × 1.21
Dec 25, 2021 42.18% = 19.24% × 1.32 × 1.66
Sep 25, 2021 55.62% = 26.72% × 1.33 × 1.56
Jun 26, 2021 48.63% = 25.76% × 1.25 × 1.51
Mar 27, 2021 44.51% = 25.24% × 1.14 × 1.55
Dec 26, 2020 42.66% = 25.50% × 1.09 × 1.54
Sep 26, 2020 22.73% = 10.17% × 1.23 × 1.82
Jun 27, 2020 18.43% = 7.96% × 1.16 × 1.99
Mar 28, 2020 16.04% = 6.72% × 1.24 × 1.93
Dec 28, 2019 12.06% = 5.07% × 1.12 × 2.13
Sep 28, 2019 — = — × — × 2.41
Jun 29, 2019 — = — × — × 2.68
Mar 30, 2019 — = — × — × 2.76

Based on: 10-Q (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Advanced Micro Devices Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 28, 2024 3.20% = 1.22 × 0.94 × 6.55% × 0.35 × 1.22
Jun 29, 2024 2.39% = 1.34 × 0.91 × 4.77% × 0.34 × 1.20
Mar 30, 2024 1.99% = 1.58 × 0.87 × 3.56% × 0.34 × 1.21
Dec 30, 2023 1.53% = 1.68 × 0.83 × 2.71% × 0.33 × 1.21
Sep 30, 2023 0.38% = 41.60 × 0.05 × 0.47% × 0.33 × 1.23
Jul 1, 2023 -0.05% = — × — × -1.01% × 0.32 × 1.23
Apr 1, 2023 0.72% = 2.28 × 0.63 × 1.18% × 0.34 × 1.24
Dec 31, 2022 2.41% = 1.10 × 0.93 × 5.45% × 0.35 × 1.23
Sep 24, 2022 4.17% = 0.90 × 0.97 × 11.44% × 0.34 × 1.24
Jun 25, 2022 5.67% = 0.87 × 0.99 × 16.97% × 0.32 × 1.22
Mar 26, 2022 6.13% = 0.86 × 0.99 × 21.02% × 0.28 × 1.21
Dec 25, 2021 42.18% = 0.86 × 0.99 × 22.57% × 1.32 × 1.66
Sep 25, 2021 55.62% = 1.31 × 0.99 × 20.58% × 1.33 × 1.56
Jun 26, 2021 48.63% = 1.42 × 0.98 × 18.42% × 1.25 × 1.51
Mar 27, 2021 44.51% = 1.64 × 0.98 × 15.75% × 1.14 × 1.55
Dec 26, 2020 42.66% = 1.95 × 0.96 × 13.59% × 1.09 × 1.54
Sep 26, 2020 22.73% = 0.94 × 0.94 × 11.47% × 1.23 × 1.82
Jun 27, 2020 18.43% = 0.92 × 0.91 × 9.55% × 1.16 × 1.99
Mar 28, 2020 16.04% = 0.91 × 0.87 × 8.52% × 1.24 × 1.93
Dec 28, 2019 12.06% = 0.92 × 0.80 × 6.92% × 1.12 × 2.13
Sep 28, 2019 — = — × — × — × — × 2.41
Jun 29, 2019 — = — × — × — × — × 2.68
Mar 30, 2019 — = — × — × — × — × 2.76

Based on: 10-Q (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Advanced Micro Devices Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 28, 2024 2.62% = 7.52% × 0.35
Jun 29, 2024 1.99% = 5.82% × 0.34
Mar 30, 2024 1.64% = 4.89% × 0.34
Dec 30, 2023 1.26% = 3.77% × 0.33
Sep 30, 2023 0.31% = 0.94% × 0.33
Jul 1, 2023 -0.04% = -0.11% × 0.32
Apr 1, 2023 0.58% = 1.71% × 0.34
Dec 31, 2022 1.95% = 5.59% × 0.35
Sep 24, 2022 3.35% = 9.96% × 0.34
Jun 25, 2022 4.64% = 14.51% × 0.32
Mar 26, 2022 5.07% = 17.98% × 0.28
Dec 25, 2021 25.46% = 19.24% × 1.32
Sep 25, 2021 35.59% = 26.72% × 1.33
Jun 26, 2021 32.14% = 25.76% × 1.25
Mar 27, 2021 28.70% = 25.24% × 1.14
Dec 26, 2020 27.78% = 25.50% × 1.09
Sep 26, 2020 12.52% = 10.17% × 1.23
Jun 27, 2020 9.25% = 7.96% × 1.16
Mar 28, 2020 8.30% = 6.72% × 1.24
Dec 28, 2019 5.66% = 5.07% × 1.12
Sep 28, 2019 — = — × —
Jun 29, 2019 — = — × —
Mar 30, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2024 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Advanced Micro Devices Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 28, 2024 2.62% = 1.22 × 0.94 × 6.55% × 0.35
Jun 29, 2024 1.99% = 1.34 × 0.91 × 4.77% × 0.34
Mar 30, 2024 1.64% = 1.58 × 0.87 × 3.56% × 0.34
Dec 30, 2023 1.26% = 1.68 × 0.83 × 2.71% × 0.33
Sep 30, 2023 0.31% = 41.60 × 0.05 × 0.47% × 0.33
Jul 1, 2023 -0.04% = — × — × -1.01% × 0.32
Apr 1, 2023 0.58% = 2.28 × 0.63 × 1.18% × 0.34
Dec 31, 2022 1.95% = 1.10 × 0.93 × 5.45% × 0.35
Sep 24, 2022 3.35% = 0.90 × 0.97 × 11.44% × 0.34
Jun 25, 2022 4.64% = 0.87 × 0.99 × 16.97% × 0.32
Mar 26, 2022 5.07% = 0.86 × 0.99 × 21.02% × 0.28
Dec 25, 2021 25.46% = 0.86 × 0.99 × 22.57% × 1.32
Sep 25, 2021 35.59% = 1.31 × 0.99 × 20.58% × 1.33
Jun 26, 2021 32.14% = 1.42 × 0.98 × 18.42% × 1.25
Mar 27, 2021 28.70% = 1.64 × 0.98 × 15.75% × 1.14
Dec 26, 2020 27.78% = 1.95 × 0.96 × 13.59% × 1.09
Sep 26, 2020 12.52% = 0.94 × 0.94 × 11.47% × 1.23
Jun 27, 2020 9.25% = 0.92 × 0.91 × 9.55% × 1.16
Mar 28, 2020 8.30% = 0.91 × 0.87 × 8.52% × 1.24
Dec 28, 2019 5.66% = 0.92 × 0.80 × 6.92% × 1.12
Sep 28, 2019 — = — × — × — × —
Jun 29, 2019 — = — × — × — × —
Mar 30, 2019 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Advanced Micro Devices Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 28, 2024 7.52% = 1.22 × 0.94 × 6.55%
Jun 29, 2024 5.82% = 1.34 × 0.91 × 4.77%
Mar 30, 2024 4.89% = 1.58 × 0.87 × 3.56%
Dec 30, 2023 3.77% = 1.68 × 0.83 × 2.71%
Sep 30, 2023 0.94% = 41.60 × 0.05 × 0.47%
Jul 1, 2023 -0.11% = — × — × -1.01%
Apr 1, 2023 1.71% = 2.28 × 0.63 × 1.18%
Dec 31, 2022 5.59% = 1.10 × 0.93 × 5.45%
Sep 24, 2022 9.96% = 0.90 × 0.97 × 11.44%
Jun 25, 2022 14.51% = 0.87 × 0.99 × 16.97%
Mar 26, 2022 17.98% = 0.86 × 0.99 × 21.02%
Dec 25, 2021 19.24% = 0.86 × 0.99 × 22.57%
Sep 25, 2021 26.72% = 1.31 × 0.99 × 20.58%
Jun 26, 2021 25.76% = 1.42 × 0.98 × 18.42%
Mar 27, 2021 25.24% = 1.64 × 0.98 × 15.75%
Dec 26, 2020 25.50% = 1.95 × 0.96 × 13.59%
Sep 26, 2020 10.17% = 0.94 × 0.94 × 11.47%
Jun 27, 2020 7.96% = 0.92 × 0.91 × 9.55%
Mar 28, 2020 6.72% = 0.91 × 0.87 × 8.52%
Dec 28, 2019 5.07% = 0.92 × 0.80 × 6.92%
Sep 28, 2019 — = — × — × —
Jun 29, 2019 — = — × — × —
Mar 30, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).

The primary reason for the increase in net profit margin ratio over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.