Stock Analysis on Net

Advanced Micro Devices Inc. (NASDAQ:AMD)

Analysis of Profitability Ratios 

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Advanced Micro Devices Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Return on Sales
Gross profit margin 48.25% 44.53% 42.61% 37.79% 34.21%
Operating profit margin 22.20% 14.02% 9.37% 6.97% 3.83%
Net profit margin 19.24% 25.50% 5.07% 5.20% 0.81%
Return on Investment
Return on equity (ROE) 42.18% 42.66% 12.06% 26.62% 7.04%
Return on assets (ROA) 25.46% 27.78% 5.66% 7.40% 1.21%

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Advanced Micro Devices Inc. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Advanced Micro Devices Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Advanced Micro Devices Inc. net profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Advanced Micro Devices Inc. ROE improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. Advanced Micro Devices Inc. ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Gross Profit Margin

Advanced Micro Devices Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Gross profit 7,929  4,347  2,868  2,447  1,823 
Net revenue 16,434  9,763  6,731  6,475  5,329 
Profitability Ratio
Gross profit margin1 48.25% 44.53% 42.61% 37.79% 34.21%
Benchmarks
Gross Profit Margin, Competitors2
Analog Devices Inc. 61.83% 65.87% 67.00% 68.27% 59.94%
Applied Materials Inc. 47.32% 44.72% 43.72% 45.31% 44.93%
Broadcom Inc. 61.36% 56.58% 55.24% 51.48% 48.25%
Intel Corp. 55.45% 56.01% 58.56% 61.73% 62.25%
Lam Research Corp. 46.53% 45.88% 45.15% 46.63% 44.97%
Micron Technology Inc. 37.62% 30.57% 45.72% 58.87% 41.51%
NVIDIA Corp. 62.34% 61.99% 61.21% 59.93% 58.80%
NXP Semiconductors N.V. 54.84% 49.18% 52.02% 51.57% 49.90%
ON Semiconductor Corp. 40.27% 32.65% 35.77% 38.08% 36.69%
Qualcomm Inc. 57.51% 60.67% 64.57% 54.94% 56.07%
Texas Instruments Inc. 67.47% 64.10% 63.71% 65.11% 64.26%

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 7,929 ÷ 16,434 = 48.25%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Advanced Micro Devices Inc. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Operating Profit Margin

Advanced Micro Devices Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Operating income 3,648  1,369  631  451  204 
Net revenue 16,434  9,763  6,731  6,475  5,329 
Profitability Ratio
Operating profit margin1 22.20% 14.02% 9.37% 6.97% 3.83%
Benchmarks
Operating Profit Margin, Competitors2
Analog Devices Inc. 23.12% 26.74% 28.55% 30.35% 20.66%
Applied Materials Inc. 29.87% 25.37% 22.93% 27.80% 26.61%
Broadcom Inc. 31.03% 16.80% 15.24% 24.63% 13.51%
Intel Corp. 24.62% 30.41% 30.62% 32.91% 28.58%
Lam Research Corp. 30.64% 26.62% 25.53% 29.01% 23.74%
Micron Technology Inc. 22.68% 14.01% 31.51% 49.34% 28.88%
NVIDIA Corp. 27.18% 26.07% 32.47% 33.05% 27.99%
NXP Semiconductors N.V. 23.35% 4.85% 7.22% 28.81% 22.71%
ON Semiconductor Corp. 19.10% 6.64% 7.84% 14.41% 12.28%
Qualcomm Inc. 29.16% 26.58% 31.59% 3.26% 11.73%
Texas Instruments Inc. 48.84% 40.76% 39.79% 42.53% 40.66%
Operating Profit Margin, Sector
Semiconductors & Semiconductor Equipment 27.70% 24.66% 26.98% 30.01% 24.20%
Operating Profit Margin, Industry
Information Technology 29.82% 26.10% 26.79% 27.57% 25.08%

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × 3,648 ÷ 16,434 = 22.20%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Advanced Micro Devices Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Net Profit Margin

Advanced Micro Devices Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Net income 3,162  2,490  341  337  43 
Net revenue 16,434  9,763  6,731  6,475  5,329 
Profitability Ratio
Net profit margin1 19.24% 25.50% 5.07% 5.20% 0.81%
Benchmarks
Net Profit Margin, Competitors2
Analog Devices Inc. 19.00% 21.79% 22.75% 24.12% 14.24%
Applied Materials Inc. 25.53% 21.04% 18.52% 19.20% 23.62%
Broadcom Inc. 24.54% 12.39% 12.05% 58.80% 9.59%
Intel Corp. 25.14% 26.84% 29.25% 29.72% 15.30%
Lam Research Corp. 26.72% 22.42% 22.70% 21.49% 21.19%
Micron Technology Inc. 21.16% 12.54% 26.97% 46.51% 25.04%
NVIDIA Corp. 25.98% 25.61% 35.34% 31.37% 24.11%
NXP Semiconductors N.V. 16.91% 0.60% 2.74% 23.47% 23.93%
ON Semiconductor Corp. 14.98% 4.46% 3.84% 10.67% 14.63%
Qualcomm Inc. 26.94% 22.09% 18.07% -21.40% 11.06%
Texas Instruments Inc. 42.35% 38.69% 34.88% 35.35% 24.61%
Net Profit Margin, Sector
Semiconductors & Semiconductor Equipment 25.12% 21.88% 23.07% 27.17% 17.19%
Net Profit Margin, Industry
Information Technology 26.34% 22.29% 23.19% 19.78% 18.69%

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 3,162 ÷ 16,434 = 19.24%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Advanced Micro Devices Inc. net profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Return on Equity (ROE)

Advanced Micro Devices Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Net income 3,162  2,490  341  337  43 
Stockholders’ equity 7,497  5,837  2,827  1,266  611 
Profitability Ratio
ROE1 42.18% 42.66% 12.06% 26.62% 7.04%
Benchmarks
ROE, Competitors2
Analog Devices Inc. 3.66% 10.17% 11.64% 13.61% 7.16%
Applied Materials Inc. 48.08% 34.21% 32.94% 48.44% 36.73%
Broadcom Inc. 26.99% 12.40% 10.92% 45.99% 8.34%
Intel Corp. 20.83% 25.79% 27.16% 28.24% 13.91%
Lam Research Corp. 64.85% 43.53% 46.89% 36.62% 24.90%
Micron Technology Inc. 13.34% 6.89% 17.59% 43.77% 27.33%
NVIDIA Corp. 25.64% 22.91% 44.33% 40.78% 28.91%
NXP Semiconductors N.V. 28.66% 0.58% 2.57% 21.02% 16.37%
ON Semiconductor Corp. 22.02% 6.62% 6.41% 19.78% 29.17%
Qualcomm Inc. 90.88% 85.54% 89.35% -524.14% 8.02%
Texas Instruments Inc. 58.27% 60.90% 56.33% 62.04% 35.62%
ROE, Sector
Semiconductors & Semiconductor Equipment 25.36% 23.00% 25.14% 32.38% 16.73%
ROE, Industry
Information Technology 42.37% 35.05% 36.73% 30.80% 23.41%

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 2021 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 3,162 ÷ 7,497 = 42.18%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Advanced Micro Devices Inc. ROE improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Return on Assets (ROA)

Advanced Micro Devices Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Net income 3,162  2,490  341  337  43 
Total assets 12,419  8,962  6,028  4,556  3,540 
Profitability Ratio
ROA1 25.46% 27.78% 5.66% 7.40% 1.21%
Benchmarks
ROA, Competitors2
Analog Devices Inc. 2.66% 5.69% 6.37% 7.31% 3.44%
Applied Materials Inc. 22.80% 16.19% 14.22% 18.64% 17.68%
Broadcom Inc. 8.91% 3.90% 4.04% 24.46% 3.11%
Intel Corp. 11.80% 13.65% 15.42% 16.45% 7.79%
Lam Research Corp. 24.59% 15.47% 18.26% 19.08% 14.00%
Micron Technology Inc. 9.96% 5.01% 12.91% 32.59% 14.40%
NVIDIA Corp. 15.05% 16.15% 31.15% 27.11% 16.93%
NXP Semiconductors N.V. 8.97% 0.26% 1.21% 10.26% 9.21%
ON Semiconductor Corp. 10.49% 2.70% 2.51% 8.27% 11.27%
Qualcomm Inc. 21.93% 14.60% 13.31% -14.88% 3.77%
Texas Instruments Inc. 31.48% 28.91% 27.84% 32.56% 20.87%
ROA, Sector
Semiconductors & Semiconductor Equipment 13.25% 11.09% 12.54% 16.78% 8.42%
ROA, Industry
Information Technology 15.42% 12.05% 12.91% 11.23% 9.16%

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 3,162 ÷ 12,419 = 25.46%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Advanced Micro Devices Inc. ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.