Amazon.com Inc (AMZN)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	30,425,000	-2,722,000	33,364,000	21,331,000	11,588,000
Total stockholders’ equity	US$ in thousands	201,875,000	146,043,000	138,245,000	93,404,000	62,060,000
ROE		15.07%	-1.86%	24.13%	22.84%	18.67%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $30,425,000K ÷ $201,875,000K
= 15.07%

Amazon.com Inc.'s Return on Equity (ROE) is a key financial ratio that measures the profitability of the company in generating earnings from shareholders' equity. From the data provided, the ROE trend for Amazon over the last five years shows fluctuation. In 2023, the ROE stood at 15.07%, indicating that the company generated a return of 15.07% on its equity for that year.

Comparing this with previous years, Amazon's ROE was negative (-1.86%) in 2022, which suggests that the company experienced a loss in shareholder value that year. However, in 2021, the ROE rebounded significantly to 24.13%, indicating a strong performance and improved profitability. The ROE continued to remain robust in 2020 at 22.84% and in 2019 at 18.67%.

The fluctuations in Amazon's ROE could be attributed to various factors such as changes in the company's profitability, utilization of leverage, and efficiency in managing its assets and liabilities. Investors and analysts typically view a higher ROE positively as it indicates the company's ability to generate higher returns on shareholder equity.

Overall, Amazon's ROE performance over the past five years has been mixed, with periods of strong profitability and some challenges. It is essential for stakeholders to closely monitor ROE along with other financial metrics to assess the company's financial health and performance.