2023 Cash Flow Analysis for Advanced Micro Devices Inc AMD

Advanced Micro Devices, Inc. (AMD) is a multinational semiconductor company that develops computer processors and related technologies for business and consumer markets. The company is headquartered in Santa Clara, California, and was founded in 1969. AMD is known for its high-performance computing products, including CPUs and GPUs, which are widely used in personal computers, servers, and gaming consoles.

The cash flow statement provides insight into how much cash or cash equivalents a company has generated and used during a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to understand how a company manages its cash resources.

How to read the chart

The chart above illustrates the cash flow of Advanced Micro Devices in 2023. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with the company's cash position at the start of the year. Since the cash decreased during the year, a portion of that cash was utilized for financing and investing activities. The cash flow from operating activities is the largest source of cash, while the cash flow from investing activities is negative, indicating that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Advanced Micro Devices' cash flow, we have created a real-time counter that simulates the company's cash flow for 2023. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they happen, but a simulation based on the company's reported cash flow for 2023. The counter is designed to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2023, Advanced Micro Devices generated $1,667 million in cash from operating activities, spent $1,423 million on investing activities, and spent $1,146 million on financing activities. Consequently, the company's cash balance decreased by $902 million during the year.

The company's beginning cash balance was $4,835 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $3,933 million.

The company's capital expenditures for the year were $546 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $1,121 million in 2023. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

In 2023, Advanced Micro Devices demonstrated strong cash flow from operating activities, which was the primary source of cash for the company. Despite a decrease in cash balance, the company maintained a healthy free cash flow, allowing it to continue investing in its growth and development. The negative cash flow from investing activities indicates significant investments in future capabilities, while the negative cash flow from financing activities suggests a focus on managing debt and returning value to shareholders.