Aureus
AExcellent

Advanced Micro Devices, Inc.(AMD)

A

Financial data as of Dec 31, 2025Improving · Technology

FCF Margin14.7%Free Cash Flow / Revenue
Cash Conversion177.8%Operating CF / Net Income
Free Cash Flow$6.7B
Revenue$34.6B
Net Cash$1.7BCash exceeds debt
Debt / FCF0.8xManageable debt load
Current Ratio2.85Adequate short-term liquidity
YoY FCF Growth+200.0%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
+0.5Healthy FCF margin with manageable debt (14.7%, 0.8x)
→
+1Strong YoY FCF growth (200.0% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.8x)
→
+0.5Strong revenue growth (37.8% YoY) offsets compressed FCF margin
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (14.7%)
  • Excellent cash conversion (178%)
  • Net cash position ($1.7B)
  • Very low debt relative to cash flow (0.8x)
  • Strong liquidity (current ratio: 2.85)
  • Strong YoY FCF growth (+200.0%)
  • Strong revenue growth (37.8% YoY)
SBC-adjusted FCF used — $1.6B stock-based compensation (24% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin14.7%
Net Margin12.5%
Operating CF Margin22.3%
CapEx Ratio2.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$1.7BCash exceeds debt
Debt / FCF0.8xManageable debt load
Current Ratio2.85Strong liquidity
Debt / Equity0.06Low leverage

Quarterly FCF Trend

+200.0% YoYImproving (+200.0%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAdvanced Micro Devices, Inc.
SectorTechnology
Free Cash Flow$6.7B
Revenue$34.6B
Net Income$4.3B
Operating Cash Flow$7.7B
Capital Expenditure$974.0M
FCF Margin14.7%
Cash Conversion Rate177.8%
Net Margin12.5%
Total Debt$3.8B
Total Cash$5.5B
Net Cash$1.7B
Current Ratio2.85
Debt / Equity0.06
Debt / FCF0.8x
YoY FCF Growth+200.0%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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