Advanced Micro Devices Inc. (NASDAQ:AMD)

The analysis of the quarterly financial data reveals several notable trends and shifts in the company's capital structure and liabilities composition over the periods examined.

Current Liabilities

Current liabilities as a percentage of total liabilities and stockholders’ equity experienced a significant decline from the start period to early 2022, dropping from around 34% to approximately 8%. Following this sharp fall, the ratio stabilized with a slight upward trend, fluctuating roughly between 9% and 13% in subsequent quarters. This suggests a reduction in short-term obligations relative to total capitalization, followed by a steady state with moderate increases.

Accounts Payable and Accrued Liabilities

Within current liabilities, accounts payable showed a considerable decrease from double-digit percentages (up to 15.1%) in early periods down to very low single digits around 2-4% after early 2022, indicating less reliance on trade credit or slower payment cycles. Accrued liabilities mirrored this pattern, declining from peaks above 20% to stabilizing near 4-6%. This consistent decline points to tighter control or changes in accrued expenses and payment practices.

Long-Term Liabilities

Long-term debt, net of the current portion, dropped sharply from above 8% in early 2020 to near zero around late 2021, followed by a moderate recovery around 2.5% to 4.5% in recent periods. Long-term operating lease liabilities showed a steady decline from around 3.6% to under 1%, highlighting possible lease terminations or shifts in lease accounting. Deferred tax liabilities peaked around mid-2022 at over 4%, then showed a steady decline to under 0.5% by mid-2025, reflecting potential tax planning or changes in deferred tax accounting. Overall, long-term liabilities as a group decreased from over 14% to around 6-9% after 2022, showing a trend towards lowering long-term commitments.

Total Liabilities

Total liabilities dropped significantly from nearly 50% of total capital structure at the start to about 17-20% in recent quarters, which indicates a substantial deleveraging or alternative financing mix adopted by the company.

Stockholders’ Equity

Stockholders' equity increased markedly from approximately 52% to above 80% after the sharp reductions in liabilities, demonstrating a stronger equity base. The additional paid-in capital component showed a decline from 171% to around 83%, which may be due to reclassifications or accounting treatments, though it still represents a major equity account. Retained earnings moved from large accumulated deficits (-118%) toward positive territory post-2023, evidencing improving profitability or retained earnings accumulation. Treasury stock grew negatively from less than 1% to about -9%, indicating substantial share repurchases or treasury holdings. Overall, equity strengthened significantly as liabilities diminished.

Other Observations

Other current and long-term liabilities exhibited moderate fluctuations but generally remained lower relative to earlier periods. The emergence of short-term borrowings and liabilities held for sale in later periods suggests some shifts in financing strategies or disposal activities.

In summary, the company demonstrated a clear trend of reducing total liabilities considerably while strengthening its equity position over the periods observed. Current liabilities contracted sharply before stabilizing, long-term debt was significantly reduced with minor rebounds, and retained earnings transitioned from negative to positive, contributing to a healthier balance sheet. These shifts may reflect strategic financial management aimed at deleveraging, improving solvency, and enhancing shareholder value.