Advanced Micro Devices Inc. (NASDAQ:AMD)

The financial ratios exhibit discernible trends over the analyzed periods, reflecting changes in asset utilization and operational efficiency. The observations are as follows:

Net Fixed Asset Turnover

The net fixed asset turnover ratio begins with increasing values from 15.23 in December 2020 to a peak of 23.41 in March 2022, indicating an improvement in the efficiency with which fixed assets are being utilized to generate sales. However, starting from March 2022, there is a notable decline to 13.43 and a subsequent stabilization around the 14.0 to 15.6 range in the following quarters. This suggests a possible reduction in the efficiency of fixed asset usage or higher fixed asset investment without a proportional sales increase during that later period.

Total Asset Turnover

The total asset turnover ratio shows growth from 1.09 in December 2020 up to 1.33 in December 2021, signaling improved overall asset efficiency in generating revenue. After December 2021, the ratio drops sharply to 0.28 in March 2022, which may be indicative of increased asset base or lower sales, reducing the turnover ratio significantly. Subsequently, the total asset turnover gradually recovers, showing a steady rise towards 0.39 by March 2025, yet it remains well below the peak seen in 2021. This pattern may reflect an asset-heavy period or strategic investment impacts followed by partial operational normalization.

Equity Turnover

The equity turnover ratio tracks an upward trend from 1.67 in December 2020 to 2.19 in March 2022, indicating progressively higher sales relative to shareholders’ equity. Similar to total asset turnover, there is a sharp fall to 0.34 in March 2022, which likely corresponds to the same period of significant change in asset or equity structure, resulting in reduced turnover ratios. Following this drop, the equity turnover ratio steadily improves, reaching 0.48 by March 2025, though still below the earlier highs. This suggests a gradual improvement in the efficiency of equity usage to generate sales after a period of restructuring or investment.

Overall, the examined ratios reflect a period of enhanced operational efficiency through 2021 and early 2022, followed by a pronounced decline in the first quarter of 2022 across all turnover metrics. The subsequent gradual recoveries in total asset and equity turnover ratios indicate improvement but do not fully return to prior peak levels, implying adjusted operational or capital intensity dynamics in recent periods. The net fixed asset turnover shows a decline and stabilization at a lower level, which may point to changed asset utilization patterns or investment strategies affecting fixed asset efficiency differently compared to total assets and equity.

Net Revenue

Net revenue shows a general upward trend from March 2020 through March 2025, indicating consistent growth over the five-year period. Starting at 1,786 million USD in March 2020, revenue increased significantly to a peak of 7,658 million USD by December 2024. There is a notable acceleration in growth observed between March 2021 and June 2022, where revenue more than doubled from 3,445 million USD to 6,550 million USD.

Some fluctuations occur in the later periods; for instance, revenue declines slightly from 6,550 million USD in June 2022 to 5,599 million USD in December 2022 before regaining upward momentum again reaching 7,658 million USD in December 2024 and slightly decreasing to 7,438 million USD by March 2025. These dips suggest possible market or operational challenges in late 2022 and early 2023, though overall growth remains strong.

Property and Equipment, Net

This asset category demonstrated a steady increase over the analyzed periods, rising from 540 million USD in March 2020 to 1,921 million USD by March 2025. Significant growth is especially pronounced beginning in March 2022, where the asset base roughly doubles within one year, from 702 million USD to 1,513 million USD by December 2022.

The continued expansion of property and equipment assets suggests ongoing capital investment and potential capacity expansion. Moderate increases follow this rapid growth phase, culminating in a value of 1,921 million USD at the end of the reported timeline.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio is available starting from the fourth quarter of 2020. It initially shows strong performance, increasing from 15.23 in December 2020 to a peak of 23.41 in December 2021. This increase indicates improved efficiency in generating revenue from fixed assets during this period.

However, after December 2021, the ratio declines notably to a range between approximately 13.97 and 15.60 through March 2025. This change suggests that while asset base was growing, the revenue generated per unit of fixed asset diminished somewhat, possibly reflecting heavier investment in fixed assets ahead of subsequent revenue increases or a shift in operational efficiency.

Overall Observations

The combined data exhibit a company undergoing rapid growth, both in terms of revenue and investment in property and equipment. The significant increase in net revenue alongside a substantial rise in fixed assets suggests a strategy focused on scaling operations and expanding capacity.

The turnaround in fixed asset turnover ratio after the peak in late 2021 indicates a potential lag between asset investment and optimized revenue generation. This pattern could imply a transitional phase where capital expenditures outpaced short-term revenue gains, which could be anticipated to balance out as new assets come fully online.

Fluctuations in revenue across some quarters point to external or internal factors affecting short-term performance, but overall trends suggest positive growth momentum supported by increased asset investment.

The net revenue exhibits a general upward trend from March 2020 through March 2025, indicating consistent growth over the analyzed periods. Starting at 1,786 million USD in March 2020, revenue peaks at 7,658 million USD by December 2024, displaying a strong increase with some fluctuations. Notably, there is a decrease around the third quarter of 2022, followed by a recovery and further growth through 2025, demonstrating a resilient revenue stream with occasional seasonal or market-related dips.

Total assets display a substantial increase, particularly starting from December 2021 onwards. Beginning at 5,864 million USD in March 2020, total assets surge sharply to 66,915 million USD by March 2022, then maintain relatively stable values above 67,000 million USD through early 2025. This pronounced growth in assets suggests significant investment or acquisitions during late 2021 and early 2022, followed by a stabilization phase, which may reflect strategic expansion or capital allocation.

The total asset turnover ratio, available from late 2020 onwards, reveals an initial increase from 1.09 to a peak of 1.33 in December 2021, indicating improved efficiency in using assets to generate revenue during this time. However, from March 2022, there is a sharp decline to a low of 0.28, which gradually recovers to 0.39 by March 2025. This low point corresponds with the sharp rise in total assets, implying that the rapid asset growth temporarily outpaced revenue growth, reducing turnover efficiency. The gradual recovery thereafter indicates an improving balance between asset utilization and revenue generation as the company adjusts its asset base or improves operations.

Overall, the data suggests a company experiencing robust revenue growth accompanied by aggressive asset expansion, particularly in early 2022, which temporarily impacted asset efficiency. The subsequent periods reveal a stabilization and gradual optimization of asset utilization, supporting ongoing revenue increases. The trends highlight a strategic expansion phase with a focus on scaling operations and improving operational effectiveness over time.

Net Revenue

Consistent increase from 1,786M USD to a peak of 7,658M USD, with minor fluctuations and a dip in late 2022.

Total Assets

Sharp increase from approximately 5,864M USD to around 67,000M USD starting in late 2021, followed by stabilization at elevated levels.

Total Asset Turnover

Initial improvement up to 1.33 in late 2021, steep decline to 0.28 in early 2022 coinciding with asset surge, then gradual recovery to 0.39 by early 2025.

The net revenue exhibits a general upward trend from March 2020 through March 2025, with fluctuations in certain quarters. Beginning at $1,786 million in the first quarter of 2020, revenue increased substantially, reaching a peak of $7,658 million in December 2024 before dropping slightly to $7,438 million in March 2025. Noticeably, revenue growth accelerated dramatically between 2021 and early 2022, escalating from $4,826 million to $6,550 million, before showing some volatility in the latter quarters of 2022 and early 2023. Subsequently, revenue appears to stabilize around $5,300 to $6,100 million, followed by renewed growth towards the end of the observed period.

Stockholders’ equity shows a significant jump between December 2021 and March 2022, increasing from roughly $7,497 million to $55,333 million. This substantial increase is not consistent with the prior trend, suggesting a major capital event or accounting adjustment occurred during that period. After this sharp rise, stockholders' equity values remain relatively stable, fluctuating slightly around $54,000 to $57,000 million through March 2025. Prior to this surge, equity grew steadily from approximately $3,037 million in March 2020 to $7,497 million in December 2021.

The equity turnover ratio, available beginning in December 2020, initially climbs from 1.67 to 2.19 by March 2022, indicating improving efficiency in using equity to generate revenue. Following March 2022, however, the ratio drops sharply to 0.34 and remains in a narrow range between 0.4 and 0.48 for subsequent quarters. This pattern suggests a significant change in either net revenue, equity, or both, affecting this efficiency measure. The initial increase in equity turnover corresponds with steady revenue increases and moderate equity growth, while the subsequent drastic reduction aligns with the large equity balance spike, diluting the ratio despite continuing revenue increases.

In summary, net revenue shows consistent growth over the analyzed period, underpinned by some volatility in recent years. Stockholders’ equity experienced a dramatic increase in early 2022, shifting to a much higher baseline afterward. The equity turnover ratio improved initially but then declined sharply in conjunction with the equity surge and stabilized at lower levels, indicating a change in the company’s capital structure or accounting treatment impacting the relationship between revenue and equity.

Net Revenue

Generally increasing with a peak in late 2024; volatility noted in late 2022 to early 2023; renewed growth observed towards early 2025.

Stockholders’ Equity

Steady growth until late 2021, followed by an extraordinary increase in early 2022; stable at elevated levels afterward.

Equity Turnover Ratio

Improved initially, peaking at early 2022, then declined significantly and stabilized at a lower level, reflective of changes in equity magnitude relative to revenue.