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Advanced Micro Devices Financial Strength

: 9 (As of Jun. 2022)
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Advanced Micro Devices has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Advanced Micro Devices Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Advanced Micro Devices's Interest Coverage for the quarter that ended in Jun. 2022 was 21.04. Advanced Micro Devices's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.12. As of today, Advanced Micro Devices's Altman Z-Score is 8.55.


Competitive Comparison

For the Semiconductors subindustry, Advanced Micro Devices's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Advanced Micro Devices Financial Strength Distribution

For the Semiconductors industry and Technology sector, Advanced Micro Devices's Financial Strength distribution charts can be found below:

* The bar in red indicates where Advanced Micro Devices's Financial Strength falls into.



Advanced Micro Devices Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Advanced Micro Devices's Interest Expense for the months ended in Jun. 2022 was $-25 Mil. Its Operating Income for the months ended in Jun. 2022 was $526 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $2,887 Mil.

Advanced Micro Devices's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*526/-25
=21.04

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Advanced Micro Devices's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(312 + 2887) / 26200
=0.12

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Advanced Micro Devices has a Z-score of 8.55, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.55 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Advanced Micro Devices  (NAS:AMD) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Advanced Micro Devices has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Advanced Micro Devices Financial Strength Related Terms

Thank you for viewing the detailed overview of Advanced Micro Devices's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Advanced Micro Devices Business Description

Advanced Micro Devices logo
Address
2485 Augustine Drive, Santa Clara, CA, USA, 95054
Advanced Micro Devices designs microprocessors for the computer and consumer electronics industries. The majority of the firm's sales are in the personal computer and data center markets via CPUs and GPUs. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox. AMD acquired graphics processor and chipset maker ATI in 2006 in an effort to improve its positioning in the PC food chain. In 2009, the firm spun out its manufacturing operations to form the foundry GlobalFoundries. In 2022, the firm acquired FPGA-leader Xilinx to diversify its business and augment its opportunities in key end markets such as the data center.
Executives
Olson Jon A director 2100 LOGIC DRIVE SAN JOSE CA 95124
Peng Victor officer: President, AECG MIPS TECHNOLOGIES INC 1225 CHARLESTON ROAD MOUNTAIN VIEW CA 94043
Vanderslice Elizabeth W director C/O XILINX INC 2100 LOGIC DRIVE SAN JOSE CA 95124
Gregoire Michael P director C/O CA, INC. ONE CA PLAZA ISLANDIA NY 11749
Grasby Paul Darren officer: SVP & CSO, President EMEA 2485 AUGUSTINE DRIVE SANTA CLARA CA 95054
Chennakeshu Sandeep officer: EVP, CGBG C/O ADVANCED MICRO DEVICES, INC. 2485 AUGUSTINE DRIVE SANTA CLARA CA 95054
Durcan Dermot Mark director
Mubadala Investment Co Pjsc director, 10 percent owner P.O. BOX 45005 ABU DHABI C0 00000
Talwalkar Abhijit Y director ONE AMD PLACE PO BOX 3453 SUNNYVALE CA 94088
Marren John W director 301 COMMERCE STREET SUITE 3300 FORT WORTH TX 76102
Smith Darla M other: Chief Accounting Officer ONE AMD PLACE M/S 68 SUNNYVALE CA 94088
Caldwell John Edward director ONE AMD PLACE MS 68 SUNNYVALE CA 94088
Yahia Ahmed director ONE AMD PLACE MS 68 SNNYVALE CA 94088
Chow Henry director ONE AMD PLACE SUNNYVALE CA 94088
Wolin Harry A officer: SVP & GC ONE AMD PLACE SUNNYVALE CA 94088

Advanced Micro Devices Headlines

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