Amazon.com Inc (AMZN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 68,593,000 | 36,852,000 | 12,248,000 | 24,879,000 | 22,899,000 |
| Total assets | US$ in thousands | 624,894,000 | 527,854,000 | 462,675,000 | 420,549,000 | 321,195,000 |
| Operating ROA | 10.98% | 6.98% | 2.65% | 5.92% | 7.13% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $68,593,000K ÷ $624,894,000K
= 10.98%
Operating Return on Assets (Operating ROA) is a crucial financial metric that indicates the efficiency of a company in generating operating profits relative to its total assets. Analyzing the data for Amazon.com Inc, we observe fluctuations in its Operating ROA over the years.
As of December 31, 2020, Amazon's Operating ROA stood at 7.13%, demonstrating a solid performance in converting its assets into operating income. However, by December 31, 2021, the Operating ROA declined to 5.92%, indicating a slight decrease in the efficiency of utilizing assets to generate operating profits.
The following year, as of December 31, 2022, Amazon's Operating ROA further decreased to 2.65%, signaling a significant drop in the company's ability to generate operating income relative to its asset base. This decline may raise concerns about the company's operational efficiency and asset utilization during that period.
Subsequently, by December 31, 2023, Amazon managed to improve its Operating ROA to 6.98%, showing a positive trend in efficiently utilizing assets to generate operating profits. This improvement suggests that the company may have implemented strategic measures to enhance its operational performance and asset productivity.
As of the most recent data on December 31, 2024, Amazon's Operating ROA significantly increased to 10.98%, indicating a substantial improvement in operational efficiency and profitability relative to its asset base. This surge in Operating ROA highlights Amazon's effectiveness in maximizing returns from its assets and generating operating income.
In conclusion, the fluctuating trend in Amazon's Operating ROA over the years reflects varying levels of operational efficiency and asset utilization. The company demonstrated resilience by improving its performance and achieving a notable increase in Operating ROA in the latest period, suggesting successful strategic initiatives and effective management of assets to drive operating profitability.
Peer comparison
Dec 31, 2024