Stock Analysis on Net

Advanced Micro Devices Inc. (NASDAQ:AMD)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Advanced Micro Devices Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Turnover Ratios
Inventory turnover 4.35 3.87 3.93 4.77 4.74
Receivables turnover 6.07 4.73 3.62 5.24 13.32
Payables turnover 6.44 11.57 3.91 7.63 9.13
Working capital turnover 3.78 2.62 3.01 4.16 4.69
Average No. Days
Average inventory processing period 84 94 93 77 77
Add: Average receivable collection period 60 77 101 70 27
Operating cycle 144 171 194 147 104
Less: Average payables payment period 57 32 93 48 40
Cash conversion cycle 87 139 101 99 64

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Advanced Micro Devices Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Advanced Micro Devices Inc. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Advanced Micro Devices Inc. payables turnover ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Advanced Micro Devices Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Advanced Micro Devices Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Advanced Micro Devices Inc. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Advanced Micro Devices Inc. operating cycle improved from 2019 to 2020 and from 2020 to 2021.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Advanced Micro Devices Inc. number of days of payables outstanding decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Advanced Micro Devices Inc. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Inventory Turnover

Advanced Micro Devices Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Cost of sales 8,505 5,416 3,863 4,028 3,506
Inventories 1,955 1,399 982 845 739
Short-term Activity Ratio
Inventory turnover1 4.35 3.87 3.93 4.77 4.74
Benchmarks
Inventory Turnover, Competitors2
Analog Devices Inc. 2.33 3.14 3.24 3.35 3.71
Applied Materials Inc. 2.82 2.44 2.37 2.54 2.73
Broadcom Inc. 8.18 10.34 11.57 9.00 6.31
First Solar Inc. 3.29 3.58 5.67 4.77 13.88
Intel Corp. 3.27 4.06 3.41 3.74 3.39
KLA Corp. 1.76 1.87 1.48 1.55 1.76
Lam Research Corp. 2.91 2.86 3.44 3.15 3.58
Micron Technology Inc. 3.85 2.65 2.48 3.48 3.81
NVIDIA Corp. 3.44 4.24 2.89 4.89 3.59
ON Semiconductor Corp. 2.92 2.83 2.88 2.97 3.22
Qualcomm Inc. 4.42 3.56 6.14 6.05 4.81
Texas Instruments Inc. 3.12 2.66 2.61 2.48 2.73
Inventory Turnover, Sector
Semiconductors & Semiconductor Equipment 3.48 3.44 3.36 3.72 3.69
Inventory Turnover, Industry
Information Technology 11.22 11.88 12.01 12.36 11.81

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
Inventory turnover = Cost of sales ÷ Inventories
= 8,505 ÷ 1,955 = 4.35

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Advanced Micro Devices Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Receivables Turnover

Advanced Micro Devices Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Net revenue 16,434 9,763 6,731 6,475 5,329
Accounts receivable, net 2,706 2,066 1,859 1,235 400
Short-term Activity Ratio
Receivables turnover1 6.07 4.73 3.62 5.24 13.32
Benchmarks
Receivables Turnover, Competitors2
Analog Devices Inc. 5.02 7.60 9.43 9.69 7.41
Applied Materials Inc. 4.66 5.81 5.77 6.73 6.22
Broadcom Inc. 13.25 10.40 6.93 6.27 7.20
First Solar Inc. 6.81 10.19 6.45 17.49 13.89
Intel Corp. 8.36 11.48 9.40 10.54 11.19
KLA Corp. 5.30 5.24 4.61 6.19 6.09
Lam Research Corp. 4.83 4.79 6.63 5.09 4.79
Micron Technology Inc. 5.63 6.13 8.43 6.01 5.82
NVIDIA Corp. 6.86 6.59 8.23 7.68 8.37
ON Semiconductor Corp. 8.33 7.77 7.83 8.57 7.90
Qualcomm Inc. 15.16 8.76 23.21 7.98 6.23
Texas Instruments Inc. 10.78 10.23 13.39 13.08 11.71
Receivables Turnover, Sector
Semiconductors & Semiconductor Equipment 7.49 8.09 8.44 7.84 7.97
Receivables Turnover, Industry
Information Technology 7.87 8.35 7.69 7.96 8.32

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
Receivables turnover = Net revenue ÷ Accounts receivable, net
= 16,434 ÷ 2,706 = 6.07

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Advanced Micro Devices Inc. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Payables Turnover

Advanced Micro Devices Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Cost of sales 8,505 5,416 3,863 4,028 3,506
Accounts payable 1,321 468 988 528 384
Short-term Activity Ratio
Payables turnover1 6.44 11.57 3.91 7.63 9.13
Benchmarks
Payables Turnover, Competitors2
Analog Devices Inc. 6.30 8.42 8.78 7.54 8.65
Applied Materials Inc. 8.25 8.46 8.58 9.47 8.47
Broadcom Inc. 9.77 12.41 11.83 12.47 8.26
First Solar Inc. 11.34 11.08 11.53 7.94 19.90
Intel Corp. 6.13 6.14 7.23 7.09 8.09
KLA Corp. 8.10 9.27 9.24 8.55 8.74
Lam Research Corp. 9.43 9.18 14.06 11.57 9.49
Micron Technology Inc. 9.91 6.79 7.58 7.39 8.92
NVIDIA Corp. 5.23 6.04 8.89 6.53 5.87
ON Semiconductor Corp. 6.34 6.18 6.52 5.42 6.40
Qualcomm Inc. 5.19 4.12 6.29 5.61 4.97
Texas Instruments Inc. 9.14 12.51 13.45 11.52 11.47
Payables Turnover, Sector
Semiconductors & Semiconductor Equipment 7.05 7.04 7.90 7.75 7.89
Payables Turnover, Industry
Information Technology 5.47 5.81 5.50 4.92 4.98

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
Payables turnover = Cost of sales ÷ Accounts payable
= 8,505 ÷ 1,321 = 6.44

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Advanced Micro Devices Inc. payables turnover ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Working Capital Turnover

Advanced Micro Devices Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Current assets 8,583 6,143 4,597 3,540 2,622
Less: Current liabilities 4,240 2,417 2,359 1,984 1,486
Working capital 4,343 3,726 2,238 1,556 1,136
 
Net revenue 16,434 9,763 6,731 6,475 5,329
Short-term Activity Ratio
Working capital turnover1 3.78 2.62 3.01 4.16 4.69
Benchmarks
Working Capital Turnover, Competitors2
Analog Devices Inc. 2.81 4.86 12.57 8.78 6.76
Applied Materials Inc. 2.36 1.93 2.54 2.58 1.65
Broadcom Inc. 2.66 4.32 7.49 3.08 1.33
First Solar Inc. 1.19 1.25 1.34 0.74 0.92
Intel Corp. 2.61 3.46 8.06 5.83 5.20
KLA Corp. 1.93 1.92 1.79 1.21 1.12
Lam Research Corp. 1.80 1.31 1.56 1.85 1.29
Micron Technology Inc. 2.05 1.89 2.31 2.95 2.85
NVIDIA Corp. 1.37 0.92 1.27 1.20 1.02
ON Semiconductor Corp. 3.01 3.48 4.59 3.46 3.64
Qualcomm Inc. 4.13 2.39 3.10 3.70 0.68
Texas Instruments Inc. 1.65 1.84 2.17 2.81 2.31
Working Capital Turnover, Sector
Semiconductors & Semiconductor Equipment 2.37 2.35 3.29 3.10 1.84
Working Capital Turnover, Industry
Information Technology 3.75 2.77 3.01 2.76 2.08

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
Working capital turnover = Net revenue ÷ Working capital
= 16,434 ÷ 4,343 = 3.78

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Advanced Micro Devices Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Average Inventory Processing Period

Advanced Micro Devices Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data
Inventory turnover 4.35 3.87 3.93 4.77 4.74
Short-term Activity Ratio (no. days)
Average inventory processing period1 84 94 93 77 77
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Analog Devices Inc. 157 116 113 109 98
Applied Materials Inc. 129 150 154 144 134
Broadcom Inc. 45 35 32 41 58
First Solar Inc. 111 102 64 76 26
Intel Corp. 112 90 107 98 108
KLA Corp. 207 195 247 235 208
Lam Research Corp. 126 128 106 116 102
Micron Technology Inc. 95 138 147 105 96
NVIDIA Corp. 106 86 126 75 102
ON Semiconductor Corp. 125 129 127 123 113
Qualcomm Inc. 83 102 59 60 76
Texas Instruments Inc. 117 137 140 147 134
Average Inventory Processing Period, Sector
Semiconductors & Semiconductor Equipment 105 106 109 98 99
Average Inventory Processing Period, Industry
Information Technology 33 31 30 30 31

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.35 = 84

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Advanced Micro Devices Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Average Receivable Collection Period

Advanced Micro Devices Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data
Receivables turnover 6.07 4.73 3.62 5.24 13.32
Short-term Activity Ratio (no. days)
Average receivable collection period1 60 77 101 70 27
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Analog Devices Inc. 73 48 39 38 49
Applied Materials Inc. 78 63 63 54 59
Broadcom Inc. 28 35 53 58 51
First Solar Inc. 54 36 57 21 26
Intel Corp. 44 32 39 35 33
KLA Corp. 69 70 79 59 60
Lam Research Corp. 76 76 55 72 76
Micron Technology Inc. 65 59 43 61 63
NVIDIA Corp. 53 55 44 48 44
ON Semiconductor Corp. 44 47 47 43 46
Qualcomm Inc. 24 42 16 46 59
Texas Instruments Inc. 34 36 27 28 31
Average Receivable Collection Period, Sector
Semiconductors & Semiconductor Equipment 49 45 43 47 46
Average Receivable Collection Period, Industry
Information Technology 46 44 47 46 44

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.07 = 60

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Advanced Micro Devices Inc. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.

Operating Cycle

Advanced Micro Devices Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data
Average inventory processing period 84 94 93 77 77
Average receivable collection period 60 77 101 70 27
Short-term Activity Ratio
Operating cycle1 144 171 194 147 104
Benchmarks
Operating Cycle, Competitors2
Analog Devices Inc. 230 164 152 147 147
Applied Materials Inc. 207 213 217 198 193
Broadcom Inc. 73 70 85 99 109
First Solar Inc. 165 138 121 97 52
Intel Corp. 156 122 146 133 141
KLA Corp. 276 265 326 294 268
Lam Research Corp. 202 204 161 188 178
Micron Technology Inc. 160 197 190 166 159
NVIDIA Corp. 159 141 170 123 146
ON Semiconductor Corp. 169 176 174 166 159
Qualcomm Inc. 107 144 75 106 135
Texas Instruments Inc. 151 173 167 175 165
Operating Cycle, Sector
Semiconductors & Semiconductor Equipment 154 151 152 145 145
Operating Cycle, Industry
Information Technology 79 75 77 76 75

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 cycle = Average inventory processing period + Average receivable collection period
= 84 + 60 = 144

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Advanced Micro Devices Inc. operating cycle improved from 2019 to 2020 and from 2020 to 2021.

Average Payables Payment Period

Advanced Micro Devices Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data
Payables turnover 6.44 11.57 3.91 7.63 9.13
Short-term Activity Ratio (no. days)
Average payables payment period1 57 32 93 48 40
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Analog Devices Inc. 58 43 42 48 42
Applied Materials Inc. 44 43 43 39 43
Broadcom Inc. 37 29 31 29 44
First Solar Inc. 32 33 32 46 18
Intel Corp. 60 59 51 51 45
KLA Corp. 45 39 40 43 42
Lam Research Corp. 39 40 26 32 38
Micron Technology Inc. 37 54 48 49 41
NVIDIA Corp. 70 60 41 56 62
ON Semiconductor Corp. 58 59 56 67 57
Qualcomm Inc. 70 89 58 65 73
Texas Instruments Inc. 40 29 27 32 32
Average Payables Payment Period, Sector
Semiconductors & Semiconductor Equipment 52 52 46 47 46
Average Payables Payment Period, Industry
Information Technology 67 63 66 74 73

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.44 = 57

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Advanced Micro Devices Inc. number of days of payables outstanding decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Cash Conversion Cycle

Advanced Micro Devices Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data
Average inventory processing period 84 94 93 77 77
Average receivable collection period 60 77 101 70 27
Average payables payment period 57 32 93 48 40
Short-term Activity Ratio
Cash conversion cycle1 87 139 101 99 64
Benchmarks
Cash Conversion Cycle, Competitors2
Analog Devices Inc. 172 121 110 99 105
Applied Materials Inc. 163 170 174 159 150
Broadcom Inc. 36 41 54 70 65
First Solar Inc. 133 105 89 51 34
Intel Corp. 96 63 95 82 96
KLA Corp. 231 226 286 251 226
Lam Research Corp. 163 164 135 156 140
Micron Technology Inc. 123 143 142 117 118
NVIDIA Corp. 89 81 129 67 84
ON Semiconductor Corp. 111 117 118 99 102
Qualcomm Inc. 37 55 17 41 62
Texas Instruments Inc. 111 144 140 143 133
Cash Conversion Cycle, Sector
Semiconductors & Semiconductor Equipment 102 99 106 98 99
Cash Conversion Cycle, Industry
Information Technology 12 12 11 2 2

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 84 + 6057 = 87

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Advanced Micro Devices Inc. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.