Amazon.com Inc (AMZN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 32.21% | 26.03% | 24.54% | 23.41% | 22.65% | 27.61% | 27.31% | 27.09% | 27.12% | 50.73% | 51.19% | 52.12% | 53.37% | 48.24% | 49.14% | 50.27% | 52.37% | 49.66% | 52.02% | 53.95% |
| Operating profit margin | 6.45% | 4.79% | 3.31% | 2.56% | 2.40% | 2.60% | 3.16% | 4.14% | 5.32% | 6.20% | 6.70% | 6.65% | 5.95% | 5.74% | 5.26% | 4.78% | 5.20% | 5.47% | 5.98% | 6.20% |
| 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% |
| Net profit margin | 5.32% | 3.65% | 2.44% | 0.82% | -0.53% | 2.27% | 2.40% | 4.50% | 7.13% | 5.75% | 6.66% | 6.44% | 5.54% | 5.01% | 4.11% | 3.58% | 4.15% | 4.29% | 4.82% | 4.99% |
Amazon.com Inc. has shown consistent improvements in its profitability ratios over the quarters. The gross profit margin has been increasing steadily, indicating the company's ability to efficiently manage its costs and generate profits from its sales. The operating profit margin has also shown an upward trend, reflecting the effectiveness of Amazon's operational management in controlling expenses and driving profitability.
The pretax margin and net profit margin have both demonstrated significant improvements from negative or low values to positive percentages, indicating enhanced overall profitability for the company. These trends suggest that Amazon has been successful in managing its pre-tax and net earnings relative to its total revenue, resulting in stronger financial performance.
Overall, the profitability ratios of Amazon.com Inc. depict a positive trajectory in profitability and efficiency, showcasing the company's ability to sustain and enhance its financial performance over time.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.98% | 5.42% | 3.71% | 2.88% | 2.65% | 3.03% | 3.64% | 4.79% | 5.92% | 7.40% | 8.22% | 8.60% | 7.13% | 7.05% | 6.53% | 6.38% | 6.46% | 7.26% | 7.85% | 8.37% |
| Return on assets (ROA) | 5.76% | 4.12% | 2.74% | 0.92% | -0.59% | 2.64% | 2.77% | 5.21% | 7.93% | 6.87% | 8.17% | 8.33% | 6.64% | 6.16% | 5.10% | 4.77% | 5.14% | 5.70% | 6.32% | 6.74% |
| Return on total capital | 15.65% | 10.68% | 7.18% | 2.78% | -1.68% | 6.16% | 7.04% | 13.50% | 21.37% | 19.19% | 21.37% | 24.28% | 20.64% | 19.14% | 16.70% | 16.32% | 18.21% | 18.73% | 20.31% | 21.20% |
| Return on equity (ROE) | 15.07% | 10.97% | 7.75% | 2.78% | -1.86% | 8.24% | 8.83% | 15.98% | 24.13% | 21.78% | 25.64% | 26.04% | 22.84% | 20.99% | 17.88% | 16.18% | 18.67% | 20.08% | 22.80% | 24.80% |
Profitability ratios provide insights into how effectively a company is generating profits from its operations and capital investments.
1. Operating return on assets (Operating ROA) measures the efficiency of a company's operations in generating profits from its total assets. Amazon's Operating ROA has been relatively stable over the quarters, ranging from 2.88% to 6.98%. This indicates that Amazon is effectively utilizing its assets to generate operating profits.
2. Return on assets (ROA) indicates how well a company is able to generate profits relative to its total assets. Amazon's ROA has varied significantly, with negative performance in Q1 2023 and positive performance in subsequent quarters. The improvement over time implies that Amazon has been able to enhance its profitability relative to its asset base.
3. Return on total capital reflects the overall return generated from both equity and debt capital invested in the company. Amazon's Return on Total Capital has shown a positive trend, increasing from 5.75% in Q1 2023 to 14.16% in Q4 2023. This signifies that Amazon is generating higher returns for its total invested capital.
4. Return on equity (ROE) assesses how efficiently a company is utilizing its shareholders' equity to generate profits. Amazon's ROE has been volatile, with negative performance in Q1 2023 but positive growth in subsequent quarters. The recovery and improvement in ROE over time suggest that Amazon is enhancing its ability to create value for its shareholders.
Overall, Amazon's profitability ratios indicate that the company has been successful in improving its operational efficiency, generating profits from its assets, optimizing capital utilization, and enhancing shareholder value over the quarters analyzed.