Amazon.com Inc (AMZN)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	59,248,000	30,425,000	-2,722,000	33,364,000	21,331,000
Total stockholders’ equity	US$ in thousands	285,970,000	201,875,000	146,043,000	138,245,000	93,404,000
ROE		20.72%	15.07%	-1.86%	24.13%	22.84%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $59,248,000K ÷ $285,970,000K
= 20.72%

Based on the provided data, Amazon.com Inc's Return on Equity (ROE) has shown some fluctuations over the years. As of December 31, 2020, the ROE stood at 22.84%, showing a decent return relative to shareholders' equity. This figure slightly improved by the end of 2021 to 24.13%, indicating the company's better utilization of equity to generate profits.

However, there was a significant downturn in Amazon's ROE by December 31, 2022, with the ratio dropping to -1.86%. A negative ROE suggests that the company incurred a net loss in that period, which could be a matter of concern for investors and stakeholders.

The following year, by December 31, 2023, Amazon managed to improve its ROE to 15.07%, displaying a recovery from the previous year's negative performance. This uptrend continued into the next year, with the ROE rising to 20.72% as of December 31, 2024.

Overall, Amazon's ROE performance reflects varying levels of profitability and efficiency in leveraging shareholder equity across the years. Investors and analysts should closely monitor these trends to assess the company's financial health and management effectiveness.