Advanced Micro Devices Inc. (NASDAQ:AMD)

The analysis of the financial structure over multiple quarters reveals several significant trends in the composition and relative proportions of liabilities and stockholders’ equity.

Accounts Payable

Accounts payable as a percentage of total liabilities and stockholders’ equity exhibited volatility, initially declining sharply from mid-2020 through early 2022, reaching a low near 2.5%. Following this period, there was a modest upward trend but remained below earlier peaks, stabilizing around 3-4.5% in the most recent quarters.

Accrued Liabilities

Accrued liabilities showed a distinct shift, with high levels around 17-21% during 2020 and early 2021, followed by a significant reduction to around 4-6% post early 2022. This lower level persists with a gradual increasing tendency towards the end of the data series.

Current Liabilities (Aggregate)

Current liabilities demonstrated a notable decline from approximately 27-35% in 2020 and 2021 to less than 10% starting in early 2022. However, they show a gradual increase thereafter to above 13% by mid-2025. This pattern indicates a restructuring or reclassification of current obligations over time.

Long-Term Debt

Long-term debt, net of current portion, decreased sharply from above 8% in early 2020 to negligible values near zero by the end of 2021. Subsequently, it stabilized at approximately 2.5% through 2024, before a slight uptick to around 4-4.5% in mid-2025. This trend suggests significant repayment or refinancing activity reducing long-term obligations initially, followed by moderate increases later.

Other Liabilities

Long-term operating lease liabilities and other long-term liabilities showed relative stability with modest fluctuations, generally maintaining a low single-digit percentage of total liabilities and equity. Deferred tax liabilities peaked around 4.65% in early 2022 but steadily declined thereafter to under 0.5% by mid-2025.

Total Liabilities

Total liabilities as a proportion of total liabilities and stockholders’ equity experienced a pronounced decline from a near 50% level at the start of the period to about 17-20% during 2022 to 2025. This indicates an overall reduction in the liability burden relative to total capital structure.

Stockholders’ Equity Components

Stockholders’ equity consistently constituted a majority portion, increasing from approximately 52% in early 2020 to over 80% by 2022, maintaining near 80-83% levels thereafter. This rise was driven primarily by improvements in retained earnings, which moved from a substantial accumulated deficit (-118% in early 2020) to positive retained earnings exceeding 6% in recent quarters, signaling a material improvement in profitability and earnings retention.

Additional Adjustments within Equity

Additional paid-in capital declined steadily from 171% at the beginning of the timeline to about 81-86% by mid-2025. Treasury stock showed increasing negative values, reaching nearly -9.6%, reflecting growing share repurchases or stock retirement activities. Accumulated other comprehensive income exhibited minor oscillations around zero without a clear long-term trend.

In summary, the data indicates a consistent reduction in total liabilities relative to the capital structure, accompanied by substantial recovery in retained earnings and stabilization of stockholders' equity near or above 80%. The reduction of long-term debt and accrued liabilities contrasts with a moderate rise in current liabilities in later periods. These shifts suggest improved financial health, deleveraging, and enhanced capital retention over the period analyzed.