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.
Long-term Activity Ratios (Summary)
Advanced Micro Devices Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-12-27), 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).
An examination of long-term activity ratios reveals notable shifts in asset utilization efficiency over the five-year period. Generally, a declining trend in asset turnover is apparent, though some ratios show signs of stabilization or modest improvement in the most recent years.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased significantly from 23.41 in 2021 to 14.27 in 2023. Following this decline, the ratio exhibited relative stability, increasing slightly to 14.31 in 2024 and further to 14.98 in 2025. This suggests that while the initial period saw a substantial reduction in sales generated per dollar of net fixed assets, the rate of decline slowed and a minor recovery occurred towards the end of the observed timeframe.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- A similar pattern is observed when including operating lease and right-of-use assets in the calculation. The ratio decreased from 15.37 in 2021 to 10.21 in 2023, followed by a slight increase to 10.63 in 2024 and 11.19 in 2025. The magnitude of change is smaller than the standard net fixed asset turnover, indicating that operating leases and right-of-use assets contribute a relatively stable level of sales generation. The overall trend, however, remains downward, albeit at a slower pace.
- Total Asset Turnover
- The total asset turnover ratio experienced a dramatic decrease from 1.32 in 2021 to 0.33 in 2023. A modest recovery is then noted, with the ratio increasing to 0.37 in 2024 and 0.45 in 2025. This indicates a substantial decline in the efficiency with which all assets are being used to generate sales, followed by a limited improvement in recent periods. The ratio remains significantly lower than its 2021 level.
- Equity Turnover
- The equity turnover ratio mirrored the trends observed in the asset turnover ratios, declining sharply from 2.19 in 2021 to 0.41 in 2023. Similar to the total asset turnover, a slight upward trend is visible in the later years, reaching 0.45 in 2024 and 0.55 in 2025. This suggests a reduced ability to generate sales from each dollar of equity, with a small degree of improvement in the most recent observations.
In summary, the period under review demonstrates a consistent decline in asset utilization efficiency, as measured by these ratios. While there are indications of stabilization and minor improvements in 2024 and 2025, the ratios generally remain well below their 2021 levels. This suggests a potential shift in the company’s operational strategy or external factors impacting sales generation relative to asset investment.
Net Fixed Asset Turnover
Advanced Micro Devices Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 34,639) | 25,785) | 22,680) | 23,601) | 16,434) | |
| Property and equipment, net | 2,312) | 1,802) | 1,589) | 1,513) | 702) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 14.98 | 14.31 | 14.27 | 15.60 | 23.41 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Analog Devices Inc. | 3.32 | 2.76 | 3.82 | 5.00 | 3.70 | |
| Applied Materials Inc. | 6.15 | 8.14 | 9.37 | 11.18 | 11.93 | |
| Broadcom Inc. | 25.25 | 20.46 | 16.63 | 14.94 | 11.69 | |
| Intel Corp. | 0.50 | 0.49 | 0.56 | 0.78 | 1.25 | |
| KLA Corp. | 9.70 | 8.84 | 10.17 | 10.84 | 10.44 | |
| Lam Research Corp. | 7.59 | 6.92 | 9.39 | 10.46 | 11.22 | |
| Micron Technology Inc. | 0.80 | 0.63 | 0.41 | 0.80 | 0.83 | |
| NVIDIA Corp. | 20.77 | 15.57 | 7.09 | 9.69 | 7.76 | |
| Qualcomm Inc. | 9.44 | 8.35 | 7.10 | 8.55 | 7.36 | |
| Texas Instruments Inc. | — | 1.38 | 1.75 | 2.91 | 3.57 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | — | 1.83 | 1.66 | 2.11 | 2.31 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | — | 3.48 | 3.79 | 4.45 | 4.75 | |
Based on: 10-K (reporting date: 2025-12-27), 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).
1 2025 Calculation
Net fixed asset turnover = Net revenue ÷ Property and equipment, net
= 34,639 ÷ 2,312 = 14.98
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a fluctuating pattern over the five-year period. Initially, a decrease is observed, followed by relative stability and a concluding upward movement. This ratio, which measures how efficiently a company utilizes its net fixed assets to generate revenue, provides insights into asset utilization effectiveness.
- Initial Decline (2021-2022)
- The net fixed asset turnover ratio decreased significantly from 23.41 in 2021 to 15.60 in 2022. This decline coincided with a substantial increase in property and equipment, net, while net revenue also increased, but at a slower pace than the asset growth. This suggests that the company was investing heavily in fixed assets, which initially lowered the efficiency of asset utilization.
- Period of Stability (2022-2024)
- From 2022 through 2024, the ratio exhibited relative stability, fluctuating between 14.27 and 15.60. While net revenue experienced moderate growth during this period, the growth in property and equipment, net, remained substantial, offsetting potential improvements in turnover. This indicates a consistent level of asset intensity in operations.
- Concluding Increase (2024-2025)
- In 2025, the net fixed asset turnover ratio increased to 14.98. This improvement occurred alongside a significant increase in net revenue, exceeding the growth in property and equipment, net. This suggests a more efficient utilization of fixed assets in generating revenue during this year.
- Overall Trend
- Despite the initial decline, the ratio demonstrates a potential stabilization and slight improvement towards the end of the observed period. The company’s ability to leverage its fixed assets to generate revenue appears to be improving, although it remains below the level observed in 2021. Continued monitoring is recommended to assess whether this upward trend persists.
The observed fluctuations in the net fixed asset turnover ratio warrant further investigation into the underlying drivers of asset investment and revenue generation. Understanding the specific investments made in property and equipment, net, and their impact on production capacity and sales is crucial for a comprehensive assessment.
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 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 34,639) | 25,785) | 22,680) | 23,601) | 16,434) | |
| Property and equipment, net | 2,312) | 1,802) | 1,589) | 1,513) | 702) | |
| Operating lease right-of-use assets | 784) | 623) | 633) | 460) | 367) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 3,096) | 2,425) | 2,222) | 1,973) | 1,069) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 11.19 | 10.63 | 10.21 | 11.96 | 15.37 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Analog Devices Inc. | 3.11 | 2.58 | 3.52 | 4.51 | 3.24 | |
| Applied Materials Inc. | 5.54 | 7.32 | 8.28 | 9.56 | 10.35 | |
| Broadcom Inc. | 16.60 | 13.41 | 13.69 | 12.12 | 9.35 | |
| Intel Corp. | 0.50 | 0.49 | 0.56 | 0.78 | 1.24 | |
| KLA Corp. | 7.98 | 7.31 | 8.46 | 9.43 | 9.03 | |
| Lam Research Corp. | 6.79 | 6.05 | 8.30 | 9.19 | 9.90 | |
| Micron Technology Inc. | 0.79 | 0.62 | 0.40 | 0.78 | 0.82 | |
| NVIDIA Corp. | 16.16 | 11.58 | 5.57 | 7.46 | 5.84 | |
| Qualcomm Inc. | 8.16 | 7.24 | 6.34 | 7.62 | 6.62 | |
| Texas Instruments Inc. | — | 1.29 | 1.66 | 2.74 | 3.27 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Semiconductors & Semiconductor Equipment | — | 1.76 | 1.60 | 2.04 | 2.23 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | — | 3.06 | 3.33 | 3.85 | 4.03 | |
Based on: 10-K (reporting date: 2025-12-27), 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).
1 2025 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)
= 34,639 ÷ 3,096 = 11.19
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, alongside its component figures of net revenue and net fixed assets, exhibits a dynamic pattern over the five-year period. Initial observations reveal a decrease in the ratio followed by a period of stabilization and eventual improvement.
- Net Revenue
- Net revenue demonstrated substantial growth from 2021 to 2022, increasing from US$16,434 million to US$23,601 million. A slight decrease was then observed in 2023, with revenue reaching US$22,680 million. Subsequent years show renewed growth, with revenue climbing to US$25,785 million in 2024 and a significant increase to US$34,639 million in 2025.
- Property and Equipment, Net (including operating lease, right-of-use asset)
- Net property and equipment consistently increased throughout the period. Starting at US$1,069 million in 2021, it rose to US$1,973 million in 2022, US$2,222 million in 2023, US$2,425 million in 2024, and finally reached US$3,096 million in 2025. The rate of increase appears to moderate over time.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio decreased from 15.37 in 2021 to 11.96 in 2022. This decline coincided with a substantial increase in net fixed assets. The ratio continued to decrease in 2023, reaching 10.21. A modest recovery was noted in 2024, with the ratio increasing to 10.63. The ratio then improved further in 2025, reaching 11.19. While the ratio has not returned to its 2021 level, the recent trend suggests a stabilization and potential improvement in the efficiency with which fixed assets are utilized to generate revenue. The increase in revenue in 2025 appears to be the primary driver of this improvement, outpacing the growth in net fixed assets.
In summary, the initial decline in the net fixed asset turnover ratio appears linked to significant investment in fixed assets. The subsequent stabilization and improvement suggest that the benefits of these investments are beginning to materialize, as evidenced by the accelerating revenue growth in the later years of the period.
Total Asset Turnover
Advanced Micro Devices Inc., total asset turnover calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 34,639) | 25,785) | 22,680) | 23,601) | 16,434) | |
| Total assets | 76,926) | 69,226) | 67,885) | 67,580) | 12,419) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.45 | 0.37 | 0.33 | 0.35 | 1.32 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Analog Devices Inc. | 0.23 | 0.20 | 0.25 | 0.24 | 0.14 | |
| Applied Materials Inc. | 0.78 | 0.79 | 0.86 | 0.96 | 0.89 | |
| Broadcom Inc. | 0.37 | 0.31 | 0.49 | 0.45 | 0.36 | |
| Intel Corp. | 0.25 | 0.27 | 0.28 | 0.35 | 0.47 | |
| KLA Corp. | 0.76 | 0.64 | 0.75 | 0.73 | 0.67 | |
| Lam Research Corp. | 0.86 | 0.80 | 0.93 | 1.00 | 0.92 | |
| Micron Technology Inc. | 0.45 | 0.36 | 0.24 | 0.46 | 0.47 | |
| NVIDIA Corp. | 1.17 | 0.93 | 0.65 | 0.61 | 0.58 | |
| Qualcomm Inc. | 0.88 | 0.71 | 0.70 | 0.90 | 0.81 | |
| Texas Instruments Inc. | — | 0.44 | 0.54 | 0.74 | 0.74 | |
| Total Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | — | 0.43 | 0.43 | 0.50 | 0.53 | |
| Total Asset Turnover, Industry | ||||||
| Information Technology | — | 0.58 | 0.61 | 0.65 | 0.62 | |
Based on: 10-K (reporting date: 2025-12-27), 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).
1 2025 Calculation
Total asset turnover = Net revenue ÷ Total assets
= 34,639 ÷ 76,926 = 0.45
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits considerable fluctuation over the observed period. Initially, the ratio demonstrates a significant decline followed by a gradual, albeit inconsistent, recovery.
- Initial Decline (2021-2022)
- A substantial decrease in the total asset turnover ratio is evident, moving from 1.32 in 2021 to 0.35 in 2022. This suggests a marked reduction in the efficiency with which assets are being utilized to generate revenue. The increase in total assets significantly outpaced the growth in net revenue during this period, contributing to the decline.
- Stabilization and Slight Improvement (2022-2024)
- From 2022 to 2024, the ratio remained relatively stable, fluctuating between 0.33 and 0.37. While not indicating substantial improvement, this period suggests a leveling off in asset utilization efficiency following the initial decline. Net revenue experienced modest growth during this time, while total assets remained comparatively consistent.
- Recent Increase (2024-2025)
- The most recent year, 2025, shows a positive trend with the total asset turnover ratio increasing to 0.45. This indicates improved efficiency in asset utilization, as net revenue grew at a faster rate than total assets. This represents the highest value for the ratio within the analyzed timeframe.
- Overall Trend
- The overall trend reveals a period of significant inefficiency followed by a slow recovery. The ratio’s movement suggests potential changes in the company’s operational strategies or asset management practices. The recent increase warrants further investigation to determine its sustainability and underlying drivers.
The observed fluctuations in the total asset turnover ratio highlight the importance of monitoring asset utilization efficiency and its relationship with revenue generation.
Equity Turnover
Advanced Micro Devices Inc., equity turnover calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 34,639) | 25,785) | 22,680) | 23,601) | 16,434) | |
| Stockholders’ equity | 62,999) | 57,568) | 55,892) | 54,750) | 7,497) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.55 | 0.45 | 0.41 | 0.43 | 2.19 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Analog Devices Inc. | 0.33 | 0.27 | 0.35 | 0.33 | 0.19 | |
| Applied Materials Inc. | 1.39 | 1.43 | 1.62 | 2.11 | 1.88 | |
| Broadcom Inc. | 0.79 | 0.76 | 1.49 | 1.46 | 1.10 | |
| Intel Corp. | 0.46 | 0.53 | 0.51 | 0.62 | 0.83 | |
| KLA Corp. | 2.59 | 2.91 | 3.59 | 6.57 | 2.05 | |
| Lam Research Corp. | 1.87 | 1.75 | 2.12 | 2.74 | 2.43 | |
| Micron Technology Inc. | 0.69 | 0.56 | 0.35 | 0.62 | 0.63 | |
| NVIDIA Corp. | 1.65 | 1.42 | 1.22 | 1.01 | 0.99 | |
| Qualcomm Inc. | 2.09 | 1.48 | 1.66 | 2.45 | 3.37 | |
| Texas Instruments Inc. | — | 0.93 | 1.04 | 1.37 | 1.38 | |
| Equity Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | — | 0.79 | 0.78 | 0.89 | 1.00 | |
| Equity Turnover, Industry | ||||||
| Information Technology | — | 1.42 | 1.57 | 1.74 | 1.79 | |
Based on: 10-K (reporting date: 2025-12-27), 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).
1 2025 Calculation
Equity turnover = Net revenue ÷ Stockholders’ equity
= 34,639 ÷ 62,999 = 0.55
2 Click competitor name to see calculations.
The equity turnover ratio demonstrates a significant shift over the observed five-year period. Initially high, the ratio experienced a substantial decline before exhibiting a modest recovery towards the end of the period.
- Equity Turnover Trend
- In 2021, the equity turnover ratio stood at 2.19. This indicates that for every dollar of stockholders’ equity, the company generated $2.19 in net revenue. A dramatic decrease was observed in 2022, with the ratio falling to 0.43. This suggests a considerably reduced efficiency in utilizing equity to generate sales. The ratio remained relatively stable in 2023 at 0.41, indicating no significant improvement in equity utilization. A slight increase to 0.45 was noted in 2024, followed by a further increase to 0.55 in 2025. While this represents a positive trend, the ratio remains substantially lower than the value recorded in 2021.
The initial decline in equity turnover coincided with a significant increase in stockholders’ equity, while net revenue also increased, but not at the same rate. The subsequent stabilization and modest recovery of the ratio appear to be linked to continued growth in net revenue, coupled with a more moderate increase in stockholders’ equity. The 2025 value suggests a potential return towards improved equity utilization, although it has not yet reached the levels seen in 2021.
- Revenue and Equity Relationship
- Net revenue increased from US$16,434 million in 2021 to US$34,639 million in 2025, representing substantial growth. However, stockholders’ equity experienced a more pronounced increase, rising from US$7,497 million in 2021 to US$62,999 million in 2025. This disparity in growth rates is the primary driver behind the observed changes in the equity turnover ratio.
The observed trend suggests that while the company has successfully grown its revenue, it has done so by leveraging significantly more equity. Further investigation would be required to determine the reasons for the substantial increase in equity and whether this is a strategic decision or a result of external factors.