Amazon.com Inc (AMZN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 36,852,000 | 12,248,000 | 24,879,000 | 22,899,000 | 14,541,000 |
| Total assets | US$ in thousands | 527,854,000 | 462,675,000 | 420,549,000 | 321,195,000 | 225,248,000 |
| Operating ROA | 6.98% | 2.65% | 5.92% | 7.13% | 6.46% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $36,852,000K ÷ $527,854,000K
= 6.98%
Amazon.com Inc.'s operating return on assets (operating ROA) has demonstrated variability over the past five years. The operating ROA was 6.46% in 2019, increased to 7.11% in 2020, decreased to 5.92% in 2021, slightly increased to 2.65% in 2022, and then increased again to 6.98% in 2023.
The upward trend in operating ROA from 2019 to 2020 indicates an improvement in the company's ability to generate operating profits from its assets. However, the subsequent decrease in 2021 followed by a significant drop in 2022 suggests a potential decline in operational efficiency. The rebound to 6.98% in 2023 indicates a partial recovery.
Overall, while Amazon's operating ROA has shown fluctuations, the company has managed to maintain positive returns on its assets, although with varying levels of efficiency. Further analysis of operational performance and asset utilization would be necessary to fully assess the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2023