Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Advanced Micro Devices Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020
Net revenue	25,785)	22,680)	23,601)	16,434)	9,763)
Cost of sales	(12,114)	(11,278)	(11,550)	(8,505)	(5,416)
Amortization of acquisition-related intangibles	(946)	(942)	(1,448)	—)	—)
Cost of sales	(13,060)	(12,220)	(12,998)	(8,505)	(5,416)
Gross profit	12,725)	10,460)	10,603)	7,929)	4,347)
Research and development	(6,456)	(5,872)	(5,005)	(2,845)	(1,983)
Marketing, general and administrative	(2,783)	(2,352)	(2,336)	(1,448)	(995)
Amortization of acquisition-related intangibles	(1,448)	(1,869)	(2,100)	—)	—)
Restructuring charges	(186)	—)	—)	—)	—)
Licensing gain	48)	34)	102)	12)	—)
Operating income	1,900)	401)	1,264)	3,648)	1,369)
Interest expense	(92)	(106)	(88)	(34)	(47)
Interest income	182)	206)	65)	8)	8)
Loss on debt redemption, repurchase and conversion	—)	—)	—)	(7)	(54)
Gains (losses) on equity investments, net	2)	(1)	(62)	56)	2)
Other income (expense)	(3)	(8)	5)	(2)	(3)
Other income (expense), net	181)	197)	8)	55)	(47)
Income before income taxes and equity income	1,989)	492)	1,184)	3,669)	1,275)
Income tax (provision) benefit	(381)	346)	122)	(513)	1,210)
Equity income in investee	33)	16)	14)	6)	5)
Net income	1,641)	854)	1,320)	3,162)	2,490)

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).

Revenue and Cost of Sales: Net revenue exhibited a strong upward trend from 9,763 million USD in 2020 to 25,785 million USD in 2024, indicating sustained growth in the company's sales. Cost of sales also increased, from 5,416 million USD in 2020 to 13,060 million USD in 2024, with an observed adjustment for amortization of acquisition-related intangibles starting in 2022, contributing to higher reported costs. Despite the rising expenses, gross profit increased steadily from 4,347 million USD in 2020 to 12,725 million USD in 2024, reflecting improved operational scale and profitability.
Operating Expenses: Research and development expenses showed significant growth, rising from 1,983 million USD in 2020 to 6,456 million USD in 2024, demonstrating a strong focus on innovation and product development. Marketing, general, and administrative expenses also increased from 995 million USD in 2020 to 2,783 million USD in 2024, indicating expanded efforts in market presence and administrative support. Amortization of acquisition-related intangibles, recorded from 2022, decreased slightly over the last two years. Restructuring charges appeared only in 2024, amounting to 186 million USD, suggesting some strategic realignments.
Profitability: Operating income fluctuated notably, peaking at 3,648 million USD in 2021 before declining to 401 million USD in 2023 and then recovering to 1,900 million USD in 2024. This volatility may be linked to changes in costs and expenses, as well as the impact of amortization and restructuring charges. The company reported a licensing gain starting in 2021, contributing positively though modestly to the operating results.
Financial Income and Expense: Interest expense showed slight fluctuations, generally increasing from 47 million USD in 2020 to 106 million USD in 2023, then declining to 92 million USD in 2024. Interest income significantly increased from 8 million USD in 2020 to 182 million USD in 2024, providing an important source of non-operating income. Gains and losses on equity investments were inconsistent, with notable losses in 2022. Other income (expense), net, improved markedly from a negative 47 million USD in 2020 to positive 197 million USD in 2023, before slightly decreasing to 181 million USD in 2024.
Income Before Taxes and Net Income: Income before income taxes and equity income peaked at 3,669 million USD in 2021, then declined substantially to 492 million USD in 2023 before recovering to 1,989 million USD in 2024. Income tax provision fluctuated widely; a significant tax benefit of 1,210 million USD in 2020 was offset by a considerable tax charge of 513 million USD in 2021 and other variations in subsequent years, resulting in a tax expense of 381 million USD in 2024. Equity income from investees exhibited a positive trend, growing from 5 million USD in 2020 to 33 million USD in 2024. Net income followed a pattern similar to operating income, reaching a high of 3,162 million USD in 2021, declining to 854 million USD in 2023, and then recovering to 1,641 million USD in 2024.
Summary: The company experienced significant revenue growth and expansion of gross profit over the five-year period, supported by increased investment in research and development and marketing efforts. However, profitability measures displayed volatility, with operating income and net income peaking in 2021 followed by a decline and partial recovery by 2024. The presence of acquisition-related amortization and restructuring expenses impacted operating results. Financial income gains helped offset interest expenses and other fluctuations in non-operating items. Tax provisions demonstrated variability, affecting net profitability margins. Overall, the financial trends indicate growth and increased operational scale but also reflect challenges in sustaining consistent profitability during this timeframe.

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Advanced Micro Devices Inc. (NASDAQ:AMD)

Income Statement