Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Advanced Micro Devices Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020
Accounts payable	1,990)	2,055)	2,493)	1,321)	468)
Payables to related parties	476)	363)	463)	85)	78)
Accrued marketing programs	1,063)	827)	876)	933)	839)
Accrued compensation and benefits	1,174)	884)	701)	705)	513)
Customer-related liabilities	1,349)	788)	859)	314)	—)
Other accrued and current liabilities	674)	583)	641)	472)	444)
Accrued liabilities	4,260)	3,082)	3,077)	2,424)	1,796)
Current portion of long-term debt, net	—)	751)	—)	312)	—)
Other current liabilities	555)	438)	336)	98)	75)
Current liabilities	7,281)	6,689)	6,369)	4,240)	2,417)
Long-term debt, net of current portion	1,721)	1,717)	2,467)	1)	330)
Long-term operating lease liabilities	491)	535)	396)	348)	201)
Deferred tax liabilities	349)	1,202)	1,934)	12)	11)
Other long-term liabilities	1,816)	1,850)	1,664)	321)	166)
Long-term liabilities	4,377)	5,304)	6,461)	682)	708)
Total liabilities	11,658)	11,993)	12,830)	4,922)	3,125)
Common stock, par value $0.01	17)	17)	16)	12)	12)
Additional paid-in capital	61,362)	59,676)	58,005)	11,069)	10,544)
Treasury stock, at cost	(6,106)	(4,514)	(3,099)	(2,130)	(131)
Retained earnings (accumulated deficit)	2,364)	723)	(131)	(1,451)	(4,605)
Accumulated other comprehensive income (loss)	(69)	(10)	(41)	(3)	17)
Stockholders’ equity	57,568)	55,892)	54,750)	7,497)	5,837)
Total liabilities and stockholders’ equity	69,226)	67,885)	67,580)	12,419)	8,962)

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).

The analysis of the annual financial figures reveals several notable trends and changes across the reporting periods.

Liabilities Trends: Current liabilities exhibited a consistent upward trajectory from $2,417 million in 2020 to $7,281 million in 2024, indicating a significant increase in short-term obligations. Accounts payable specifically surged sharply from $468 million in 2020 to a peak of $2,493 million in 2022 before moderating slightly to $1,990 million in 2024. Payables to related parties also rose substantially, particularly between 2021 and 2022. Accrued compensation and benefits showed steady growth throughout the period, reaching $1,174 million by 2024.; Customer-related liabilities appeared starting in 2021 and increased markedly to $1,349 million by 2024, suggesting expansion in obligations related to customers. Other accrued and current liabilities also increased, though more moderately.; Total accrued liabilities consistently rose from $1,796 million in 2020 to $4,260 million in 2024, reinforcing the pattern of growing short-term obligations.; Long-term liabilities displayed volatility, climbing sharply from $682 million in 2021 to a high of $6,461 million in 2022, then decreasing to $4,377 million by 2024. The largest component contributing to this was long-term debt, which spiked substantially in 2022 before falling and stabilizing in subsequent years.; Deferred tax liabilities showed a marked increase in 2022, reaching nearly $2 billion, then declined sharply by 2024.; Overall, total liabilities surged from $3,125 million in 2020 to a peak of $12,830 million in 2022, and then slightly declined but remained elevated at $11,658 million by 2024.

Equity Trends: Stockholders’ equity experienced strong growth throughout the period, rising from $5,837 million in 2020 to $57,568 million in 2024. This substantial increase was primarily driven by additional paid-in capital, which increased dramatically from around $10,544 million in 2020 to over $61,362 million by 2024.; Retained earnings improved significantly, moving from a negative balance of -$4,605 million in 2020 to a positive $2,364 million by 2024, indicating a turnaround in the company’s accumulated profitability or loss absorption.; Treasury stock levels increased in absolute value (more negative) each year, reaching -$6,106 million in 2024. This suggests ongoing repurchases of stock or other equity transactions reducing outstanding shares.; Accumulated other comprehensive income showed minor fluctuations but remained near zero or slightly negative, indicating limited impact on overall equity.

Balance Sheet Structure: Total liabilities and stockholders’ equity expanded significantly from $8,962 million in 2020 to $69,226 million in 2024. This expansion reflects both increased financing through liabilities and equity, with a more pronounced emphasis on equity growth.; The relative growth of equity compared to liabilities suggests a strengthening of the company’s capital base over this period.

In summary, the financial data reveal a pattern of rapid growth in both liabilities and equity, with a notable surge in additional paid-in capital and improvement in retained earnings. Current liabilities increased steadily, reflecting higher operational obligations, while long-term liabilities showed more variability. The company appears to have strengthened its equity position considerably, likely supporting its expanding operational scale.

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Advanced Micro Devices Inc. (NASDAQ:AMD)

Balance Sheet: Liabilities and Stockholders’ Equity