Will AMD’s Improving Profits Reflect in Its Efficiency Ratios?

Advanced Micro Devices (AMD) has been reporting losses for the past five years, but it managed to pull out of the slump and report a profit in 2017. In 2018, AMD’s management is focused on generating higher earnings from its investments by focusing on high-end products that generate higher margins. This move from losses to profits has improved AMD’s returns. Investors look at a company’s efficiency ratios to understand its management’s efficiency in delivering higher returns from lower investments.