Amazon.com Inc (AMZN)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 59,248,000 | 49,868,000 | 44,419,000 | 37,684,000 | 30,425,000 | 20,079,000 | 13,072,000 | 4,294,000 | -2,722,000 | 11,323,000 | 11,607,000 | 21,413,000 | 33,364,000 | 26,263,000 | 29,438,000 | 26,903,000 | 21,331,000 | 17,377,000 | 13,180,000 | 10,562,000 |
| Total stockholders’ equity | US$ in thousands | 285,970,000 | 259,151,000 | 236,447,000 | 216,661,000 | 201,875,000 | 182,973,000 | 168,602,000 | 154,526,000 | 146,043,000 | 137,489,000 | 131,402,000 | 134,001,000 | 138,245,000 | 120,564,000 | 114,803,000 | 103,320,000 | 93,404,000 | 82,775,000 | 73,728,000 | 65,272,000 |
| ROE | 20.72% | 19.24% | 18.79% | 17.39% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $59,248,000K ÷ $285,970,000K
= 20.72%
Amazon.com Inc's Return on Equity (ROE) has shown fluctuations over the past few years. It increased from 16.18% as of March 31, 2020, to a peak of 26.04% as of March 31, 2021, indicating strong profitability relative to shareholder equity during this period.
Subsequently, the ROE experienced a decline, dropping to 8.24% as of September 30, 2022, and turning negative at -1.86% by December 31, 2022. This indicates that Amazon faced challenges in generating earnings from shareholders' investments during this period.
However, the company managed to reverse the trend, with the ROE increasing gradually from 2.78% as of March 31, 2023, to 20.72% as of December 31, 2024. This improvement suggests that Amazon enhanced its ability to generate profits from shareholders' equity investments, reflecting positively on its profitability and operational efficiency.
Overall, Amazon's ROE trend highlights both strengths and challenges in utilizing shareholder equity effectively to generate profits and create value for investors. It is essential for the company to continue monitoring and improving its ROE to ensure sustainable and favorable returns for its shareholders.
Peer comparison
Dec 31, 2024