Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Advanced Micro Devices Inc., long-term (investment) activity ratios
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net fixed asset turnover
- The net fixed asset turnover ratio experienced a significant increase from 15.23 in 2020 to a peak of 23.41 in 2021. After this peak, the ratio declined notably, stabilizing around the mid-14 range in 2023 and 2024, with values at 14.27 and 14.31 respectively. This indicates an initial high efficiency in utilizing fixed assets to generate sales, followed by a period of reduced efficiency that then stabilized.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This ratio shows a similar trend to the net fixed asset turnover but at consistently lower levels. It rose from 11.5 in 2020 to 15.37 in 2021, then declined progressively over the subsequent years to 10.21 in 2023, with a slight increase to 10.63 in 2024. This trend reflects a decreasing efficiency in asset usage when incorporating leased assets, possibly indicating changes in leasing arrangements or asset utilization.
- Total asset turnover
- The total asset turnover ratio showed an increase from 1.09 in 2020 to 1.32 in 2021, suggesting an improvement in overall asset efficiency. However, from 2021 onwards, the ratio dramatically decreased to very low levels, remaining around 0.33 to 0.37 through 2023 and 2024. This pronounced decline suggests a significant reduction in how effectively total assets are being used to generate revenue over the past three years.
- Equity turnover
- Equity turnover mirrored the pattern observed in total asset turnover. It rose from 1.67 in 2020 to 2.19 in 2021, indicating highly efficient use of equity to drive sales in that year. Subsequently, it experienced a steep decrease to below 0.5 from 2022 through 2024, showing diminished efficiency in leveraging equity for revenue generation in recent years.
Net Fixed Asset Turnover
Advanced Micro Devices Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Net fixed asset turnover = Net revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Revenue
- The net revenue shows a significant upward trend over the observed period. Beginning at 9,763 million US dollars in 2020, revenue increased sharply to 16,434 million in 2021 and continued rising to 23,601 million in 2022. Although there was a slight decline to 22,680 million in 2023, the revenue rebounded to reach a peak of 25,785 million in 2024. This pattern indicates strong overall growth, with a temporary decrease in 2023 likely influenced by external factors or market conditions before resuming its growth trajectory.
- Property and Equipment, Net
- The net value of property and equipment steadily increased throughout the periods. Starting at 641 million US dollars in 2020, there was a moderate increase to 702 million in 2021, followed by a sharp rise to 1,513 million in 2022. The upward trend continued at a slower pace with values of 1,589 million in 2023 and 1,802 million in 2024. This consistent investment in physical assets suggests ongoing capital expansion and strengthening of the company’s operational infrastructure.
- Net Fixed Asset Turnover
- This ratio experienced volatility across the years. It peaked at 23.41 in 2021, following an initial value of 15.23 in 2020, indicating enhanced efficiency in utilizing fixed assets to generate revenue during this period. However, the ratio declined significantly to 15.6 in 2022, and further decreased to 14.27 in 2023, stabilizing slightly at 14.31 in 2024. Despite the company's increased investments in property and equipment, the declining turnover ratio suggests a reduction in asset utilization efficiency, potentially due to the rapid asset base expansion outpacing revenue growth or a shift in business dynamics.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Advanced Micro Devices Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Property and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Revenue
- The net revenue displays a marked upward trend over the analyzed period. Starting at $9,763 million in late 2020, revenue increased significantly to $16,434 million by the end of 2021, representing substantial growth. This upward momentum continued into 2022 with revenues reaching $23,601 million. However, in 2023 there was a slight decline to $22,680 million, before rebounding to $25,785 million in 2024. Overall, despite a minor dip in 2023, the net revenue has more than doubled from 2020 to 2024, indicating robust sales performance.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease right-of-use assets, shows consistent growth throughout the period. Starting at $849 million in 2020, this asset base expanded substantially each year, more than doubling to $1,069 million in 2021 and nearly doubling again to $1,973 million in 2022. The upward trend continued with increases to $2,222 million in 2023 and $2,425 million in 2024. This steady increase suggests ongoing investment in fixed assets, which may be supporting the company’s operational capabilities and growth objectives.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits volatility over the years. It began at 11.5 in 2020 and rose sharply to 15.37 in 2021, indicating a more efficient use of fixed assets to generate revenue during that period. This efficiency declined to 11.96 in 2022, followed by a further decrease to 10.21 in 2023. In 2024, there is a modest recovery to 10.63. The downward trend from 2021 onwards implies that the growth in property and equipment outpaced revenue growth in those years, leading to reduced turnover efficiency. Nevertheless, the ratio remains above 10, suggesting that asset utilization remains at a solid level.
Total Asset Turnover
Advanced Micro Devices Inc., total asset turnover calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Total asset turnover = Net revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period, particularly in terms of revenue generation, asset base growth, and asset efficiency.
- Net Revenue
-
There is a consistent upward trend in net revenue, increasing significantly from $9,763 million in 2020 to $25,785 million in 2024. The revenue nearly doubled from 2020 to 2021, continued to grow sharply in 2022, experienced a slight decline in 2023, and rebounded again in 2024 to reach the highest value in the series.
- Total Assets
-
Total assets show substantial growth, moving from $8,962 million in 2020 to $69,226 million in 2024. This increase is particularly pronounced between 2021 and 2022, where assets increased more than fivefold. Post-2022, the total assets remain at similarly high levels, showing marginal increases towards 2024.
- Total Asset Turnover
-
The total asset turnover ratio declined markedly from 1.09 in 2020 and 1.32 in 2021 down to below 0.4 in subsequent years, bottoming out at 0.33 in 2023 before a slight recovery to 0.37 in 2024. This suggests that despite growing revenues, the efficiency with which assets generate revenue has deteriorated significantly since 2021, reflective of rapid asset growth outpacing revenue increases.
Overall, the data indicates robust revenue growth alongside aggressive expansion of the asset base. However, the declining asset turnover ratio signals a reduction in operational efficiency in generating revenue from assets, which may result from investments in long-term assets or changes in business operations. The slight improvement in the ratio in the final year suggests some progress in leveraging assets more effectively.
Equity Turnover
Advanced Micro Devices Inc., equity turnover calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Equity turnover = Net revenue ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The annual financial data reveals several critical trends in the company's performance over the five-year period under review.
- Net Revenue
- The net revenue demonstrates a strong upward trajectory, increasing from approximately $9.8 billion in 2020 to about $25.8 billion in 2024. This represents a substantial growth of more than 2.6 times over the five years. Notably, revenue growth was especially pronounced between 2020 and 2022, more than doubling from around $9.8 billion to $23.6 billion. Although there was a slight dip in 2023 to $22.7 billion, the subsequent recovery in 2024 signifies resilience and continued expansion.
- Stockholders’ Equity
- Stockholders' equity also shows a significant increase overall, escalating from roughly $5.8 billion in 2020 to around $57.6 billion in 2024. This tenfold increase is particularly marked between 2021 and 2022, where equity surged from $7.5 billion to $54.7 billion. After this sharp rise, equity has shown relatively stable but moderate growth through to 2024. This sharp increase may reflect major equity injections, retained earnings accumulations, or revaluations during that period.
- Equity Turnover
- The equity turnover ratio, which measures net revenue relative to shareholder equity, reveals a declining trend over the period. It dropped from 1.67 in 2020 to a low of 0.41 in 2023, with a modest recovery to 0.45 in 2024. This decline primarily occurred in 2022 and 2023, coinciding with the significant equity growth noted above. The decline in this ratio suggests that revenue generation per unit of equity has decreased, likely due to the rapid expansion in equity not being immediately matched by proportional revenue increases.
In summary, the company has experienced robust revenue growth and an extraordinary expansion in shareholder equity. However, the decreasing equity turnover ratio indicates that despite higher revenues, the efficiency of equity utilization has diminished in recent years. This could imply a phase of capital accumulation or investment expecting future revenue growth rather than immediate returns.