Advanced Micro Devices Inc. (NASDAQ:AMD)

The financial data reveals a significant fluctuation in the total assets over the observed periods. From 2020 to 2021, total assets increased moderately, rising from 8,962 million US dollars to 12,419 million US dollars, indicating a period of asset growth.

A notable surge occurred in 2022, where total assets escalated dramatically to 67,580 million US dollars, representing more than a fivefold increase compared to the previous year. This large increase was sustained in the following years with relatively stable total assets at 67,885 million and 69,226 million US dollars in 2023 and 2024, respectively, showing minor incremental growth.

Adjusted total assets display a closely aligned pattern with the total assets. The values increased from 7,717 million US dollars in 2020 to 11,488 million US dollars in 2021, consistent with the growth in total assets. Similarly, adjusted total assets witnessed a substantial rise in 2022 reaching 67,522 million US dollars, nearly matching the total assets figure for that year.

In the subsequent years, adjusted total assets remained relatively stable—67,519 million in 2023 and a slight increase to 68,538 million in 2024—mirroring the trend seen with total assets. The minimal difference between total and adjusted total assets suggests that adjustments made do not significantly alter the asset base figures.

Overall, the data indicates a phase of moderate asset growth in the early years, followed by an exceptional expansion starting in 2022, maintaining a stable high asset base afterward. This trend suggests possible major acquisitions, asset revaluations, or other significant financial activities that substantially increased the company's asset base starting in 2022, with sustainable asset levels preserved in the two succeeding years.

Total liabilities

Total liabilities exhibit a significant upward trend from 2020 to 2022, with values increasing from 3,125 million USD in 2020 to a peak of 12,830 million USD in 2022. Following this peak, there is a slight decrease in total liabilities to 11,993 million USD in 2023 and a further moderate decline to 11,658 million USD in 2024. This pattern suggests a period of rapid liability growth during the initial years followed by stabilization and gradual reduction in the last two reported years.

Adjusted total liabilities

The adjusted total liabilities follow a trend similar to total liabilities, increasing from 3,077 million USD in 2020 to a high point of 10,831 million USD in 2022. After reaching this level, adjusted liabilities slightly decrease to 10,706 million USD in 2023 and show a modest rise again to 11,032 million USD in 2024. This fluctuation indicates some adjustments in liabilities that moderate the steep increase seen in total liabilities, with relative stability in the last two years.

The financial data reveals significant changes in both stockholders' equity and adjusted stockholders' equity over the five-year period examined.

Stockholders’ Equity

There is a steady increase from 2020 to 2021, rising from approximately 5,837 million US dollars to 7,497 million US dollars. Following this period, there is a dramatic surge to 54,750 million US dollars by the end of 2022, maintaining a relatively stable level through 2023 at 55,892 million US dollars, and a slight increase to 57,568 million US dollars in 2024. This represents an overall substantial growth trend, particularly between 2021 and 2022.

Adjusted Stockholders’ Equity

The adjusted measure follows a similar pattern, increasing from 4,640 million US dollars in 2020 to 6,629 million in 2021. It then experiences a pronounced rise to 56,691 million US dollars by the end of 2022. This elevated level persists with minor fluctuations through 2023 and 2024, concluding at 57,506 million US dollars. The trend mirrors that of the unadjusted equity figures, highlighting a major increase beginning in 2022.

The data suggests a significant capital event or revaluation occurred between 2021 and 2022, resulting in a substantial increase in equity levels. Both the standard and adjusted equity values show parallel behavior, indicating consistency between reported and adjusted figures. The equity overall demonstrates strong growth and stability in the latter years, indicating a reinforced equity base.

The financial data reveals significant shifts over the examined five-year period. Notably, total reported debt experienced a sharp increase between 2021 and 2022, rising from US$313 million to US$2,467 million, followed by a stable level in 2023 before declining to US$1,721 million in 2024. This initial surge indicates a substantial rise in debt obligations, which then moderated somewhat by the end of the period.

Stockholders’ equity showed a strong upward trajectory from 2020 through 2021, increasing from US$5,837 million to US$7,497 million. The equity then surged dramatically to US$54,750 million in 2022, continuing a modest increase over the following years, reaching US$57,568 million by 2024. This marked elevation reflects a significant strengthening in the equity base, suggesting substantial retained earnings, capital inflows, or asset revaluations.

Total reported capital, the sum of reported debt and stockholders’ equity, mirrored the patterns observed in its components. It rose steadily from US$6,167 million in 2020 to US$7,810 million in 2021, then surged to US$57,217 million in 2022 with incremental growth thereafter, ending at US$59,289 million in 2024. This consolidation suggests a substantial increase in the company’s overall financial capacity and funding base during the middle period, followed by stability.

The adjusted figures provide further perspectives on the company’s financial structure. Adjusted total debt increased sharply from US$732 million in 2021 to US$2,956 million in 2022 and peaked at US$3,109 million in 2023 before contracting to US$2,321 million in 2024. This dynamic is consistent with total reported debt but indicates a higher peak level when accounting for the adjustments.

Adjusted stockholders’ equity displayed a significant escalation from US$4,640 million in 2020 to US$6,629 million in 2021, then accelerated to US$56,691 million in 2022, with a slight rise to US$57,506 million by 2024. This pattern aligns closely with the unadjusted equity figures, confirming a fortified equity position through the period.

Consequently, adjusted total capital also rose from US$5,212 million in 2020 to US$7,361 million in 2021, reaching a peak of US$59,647 million in 2022, and stabilizing near that figure around US$59,827 million by 2024. The close alignment between adjusted and reported capital figures post-2022 signals consistency in the underlying capital structure after adjustments.

Overall, the data points toward a period of considerable growth and capital restructuring, particularly around 2022, where both debt and equity components expanded markedly. The subsequent years show consolidation and slight reductions in debt levels, while equity remains robust. This trend suggests increased financial capacity and potentially higher investment or expansion activity during the surge period, followed by a phase of stabilization and deleveraging.

Net Income

The net income exhibited an overall fluctuating trend over the five-year period. Starting at 2,490 million US dollars in 2020, it increased significantly to 3,162 million US dollars in 2021. However, in 2022, net income declined sharply to 1,320 million US dollars, followed by a further decrease in 2023 to 854 million US dollars. In 2024, net income partially recovered to 1,641 million US dollars, indicating some improvement but still below the peak level seen in 2021.

Adjusted Net Income

The adjusted net income showed a markedly different pattern. It began at 1,306 million US dollars in 2020, then increased substantially to 3,464 million US dollars in 2021, reflecting a strong performance that year. After 2021, adjusted net income deteriorated considerably, turning negative with losses of 209 million US dollars in 2022 and further losses of 114 million US dollars in 2023. In 2024, there was a return to positive territory with adjusted net income reaching 611 million US dollars, suggesting a partial recovery although still considerably lower than the highs of 2021.

Overall Analysis

The financial results reveal a peak in 2021 for both net income and adjusted net income, followed by declines in the subsequent two years. The recovery observed in 2024 for both metrics indicates some improvement in profitability, although adjusted net income remains significantly below earlier peaks. The divergence between net income and adjusted net income, especially the negative adjusted net income in 2022 and 2023, may suggest the presence of extraordinary items or non-recurring expenses impacting profitability during those years. The trends highlight volatility in earnings performance, underscoring the importance of analyzing underlying operational factors and potential adjustments affecting net income figures.