Stock Analysis on Net
Stock Analysis on Net
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Advanced Micro Devices Inc. (NASDAQ:AMD)

Analysis of Operating Leases

Advanced level


Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Advanced Micro Devices Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

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Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
Total undiscounted future operating lease payments 322  255  388  306 
Discount rate1 7.58% 7.48% 7.42% 7.21%
 
Total present value of future operating lease payments 242  189  288  230 

Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18).

1 Weighted-average interest rate for Advanced Micro Devices Inc.’s debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 7.58%
2019 54  2019 54  50 
2020 48  2020 48  41 
2021 43  2021 43  35 
2022 40  2022 40  30 
2023 35  2023 35  24 
2024 and thereafter 102  2024 35  23 
2025 35  21 
2026 32  18 
Total: 322  322  242 

Based on: 10-K (filing date: 2019-02-08).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 7.48%
2018 40  2018 40  37 
2019 35  2019 35  30 
2020 31  2020 31  25 
2021 29  2021 29  22 
2022 28  2022 28  20 
2023 and thereafter 92  2023 28  18 
2024 28  17 
2025 28  16 
2026
Total: 255  255  189 

Based on: 10-K (filing date: 2018-02-27).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 7.42%
2017 49  2017 49  46 
2018 51  2018 51  44 
2019 46  2019 46  37 
2020 43  2020 43  32 
2021 64  2021 64  45 
2022 and thereafter 135  2022 64  42 
2023 64  39 
2024
Total: 388  388  288 

Based on: 10-K (filing date: 2017-02-21).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 7.21%
2016 51  2016 51  48 
2017 50  2017 50  44 
2018 45  2018 45  37 
2019 28  2019 28  21 
2020 26  2020 26  18 
2021 and thereafter 106  2021 26  17 
2022 26  16 
2023 26  15 
2024 26  14 
2025
Total: 306  306  230 

Based on: 10-K (filing date: 2016-02-18).


Adjustments to Financial Statements for Operating Leases

Advanced Micro Devices Inc., adjustments to financial statements

US$ in millions

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Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
Adjustment to Total Assets
Total assets (as reported) 6,028  4,556  3,540  3,321  3,109 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  242  189  288  230 
Total assets (adjusted) 6,028  4,798  3,729  3,609  3,339 
Adjustment to Total Debt
Total debt (as reported) 486  1,250  1,395  1,435  2,262 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  242  189  288  230 
Add: Current operating lease liabilities 43  —  —  —  — 
Add: Long-term operating lease liabilities 199  —  —  —  — 
Total debt (adjusted) 728  1,492  1,584  1,723  2,492 

Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18).

1, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

Advanced Micro Devices Inc., adjusted financial ratios

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Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
Total Asset Turnover1
Reported total asset turnover 1.12 1.42 1.51 1.29 1.28
Adjusted total asset turnover 1.12 1.35 1.43 1.18 1.20
Debt to Equity2
Reported debt to equity 0.17 0.99 2.28 3.45
Adjusted debt to equity 0.26 1.18 2.59 4.14
Return on Assets3 (ROA)
Reported ROA 5.66% 7.40% 1.21% -14.97% -21.23%
Adjusted ROA 5.66% 7.02% 1.15% -13.77% -19.77%

Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18).

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.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Advanced Micro Devices Inc.’s adjusted debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Advanced Micro Devices Inc.’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

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


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
As Reported
Selected Financial Data (US$ in millions)
Net revenue 6,731  6,475  5,329  4,272  3,991 
Total assets 6,028  4,556  3,540  3,321  3,109 
Activity Ratio
Total asset turnover1 1.12 1.42 1.51 1.29 1.28
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net revenue 6,731  6,475  5,329  4,272  3,991 
Adjusted total assets 6,028  4,798  3,729  3,609  3,339 
Activity Ratio
Adjusted total asset turnover2 1.12 1.35 1.43 1.18 1.20

Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18).

2019 Calculations

1 Total asset turnover = Net revenue ÷ Total assets
= 6,731 ÷ 6,028 = 1.12

2 Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 6,731 ÷ 6,028 = 1.12

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.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
As Reported
Selected Financial Data (US$ in millions)
Total debt 486  1,250  1,395  1,435  2,262 
Stockholders’ equity (deficit) 2,827  1,266  611  416  (412)
Solvency Ratio
Debt to equity1 0.17 0.99 2.28 3.45
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 728  1,492  1,584  1,723  2,492 
Stockholders’ equity (deficit) 2,827  1,266  611  416  (412)
Solvency Ratio
Adjusted debt to equity2 0.26 1.18 2.59 4.14

Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18).

2019 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 486 ÷ 2,827 = 0.17

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity (deficit)
= 728 ÷ 2,827 = 0.26

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Advanced Micro Devices Inc.’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 341  337  43  (497) (660)
Total assets 6,028  4,556  3,540  3,321  3,109 
Profitability Ratio
ROA1 5.66% 7.40% 1.21% -14.97% -21.23%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) 341  337  43  (497) (660)
Adjusted total assets 6,028  4,798  3,729  3,609  3,339 
Profitability Ratio
Adjusted ROA2 5.66% 7.02% 1.15% -13.77% -19.77%

Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18).

2019 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 341 ÷ 6,028 = 5.66%

2 Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 341 ÷ 6,028 = 5.66%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Advanced Micro Devices Inc.’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.