Amazon.com Inc (AMZN)
Pretax margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 37,525,000 | 22,910,000 | 13,666,000 | 3,447,000 | -5,939,000 | 9,945,000 | 11,315,000 | 22,626,000 | 38,155,000 | 31,008,000 | 33,597,000 | 31,178,000 | 24,194,000 | 20,460,000 | 16,188,000 | 12,843,000 | 13,961,000 | 13,261,000 | 14,024,000 | 13,750,000 |
| Revenue (ttm) | US$ in thousands | 571,668,000 | 550,716,000 | 534,914,000 | 521,895,000 | 511,276,000 | 499,803,000 | 483,634,000 | 475,856,000 | 467,958,000 | 456,610,000 | 442,115,000 | 417,869,000 | 384,831,000 | 346,713,000 | 320,581,000 | 295,093,000 | 279,382,000 | 264,328,000 | 250,961,000 | 240,483,000 |
| Pretax margin | 6.56% | 4.16% | 2.55% | 0.66% | -1.16% | 1.99% | 2.34% | 4.75% | 8.15% | 6.79% | 7.60% | 7.46% | 6.29% | 5.90% | 5.05% | 4.35% | 5.00% | 5.02% | 5.59% | 5.72% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $37,525,000K ÷ $571,668,000K
= 6.56%
The pretax margin measures the company's efficiency in generating profits before taxes relative to its total revenue. Analyzing Amazon.com Inc.'s pretax margin over the past eight quarters, we observe fluctuations in its performance. In Q4 2023, Amazon achieved a pretax margin of 6.53%, demonstrating an improvement compared to the previous quarter. This upward trend signals enhanced profitability and cost management strategies in the most recent period.
Q3 2023 saw a pretax margin of 4.14%, suggesting a moderate decline from the preceding quarter. However, the company maintained positive profitability during this period. In Q2 and Q1 2023, Amazon's pretax margins were 2.54% and 0.66%, respectively, indicating a consistent but gradual increase in profitability quarter over quarter.
Comparing these results to the same periods in 2022 reveals significant growth in performance. In Q4 2022, Amazon had a negative pretax margin of -1.16%, reflecting challenges or inefficiencies during that quarter. However, the company swiftly recovered, achieving pretax margins of 1.98%, 2.33%, and 4.74% in Q3, Q2, and Q1 2022, respectively.
Overall, Amazon.com Inc.'s pretax margin has shown resilience and improvement in recent quarters, showcasing the company's ability to adapt to changing market conditions and sustain profitability. This consistent effort to enhance operational efficiency and profitability is crucial for long-term success and shareholder value creation.
Peer comparison
Dec 31, 2023