Amazon.com Inc (AMZN)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 11,588,000 | 11,347,000 | 12,096,000 | 12,005,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 62,060,000 | 56,508,000 | 53,061,000 | 48,410,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $30,425,000K ÷ $201,875,000K
= 15.07%
To analyze Amazon.com Inc.'s return on equity (ROE) over the recent quarters, we observe fluctuations in the ROE metric.
- The ROE for Q4 2023 stands at 15.07%, representing a significant increase compared to the previous quarter's 10.97%. This indicates that Amazon is generating a higher level of net income relative to its shareholders' equity, reflecting improved profitability.
- In Q3 2023, the ROE was 10.97%, showcasing a moderate decline from the previous quarter's 7.75%. Although the ROE decreased, Amazon continued to deliver strong returns to its shareholders during the period.
- Q2 2023 saw an ROE of 7.75%, indicating a further decrease from the preceding quarter's 2.78%. The ROE improvement suggests that Amazon managed to enhance its efficiency in utilizing equity to generate profits.
- Q1 2023 recorded an ROE of 2.78%, illustrating a gradual increase from the negative ROE of -1.86% in Q4 2022. This improvement indicates that Amazon's profitability started to recover after facing challenges in the prior quarter.
- Notably, in Q4 2022, Amazon reported a negative ROE of -1.86%, implying that the company's net income was insufficient to cover the equity of its shareholders. This negative ROE could be attributed to various factors affecting profitability during that period.
- In Q3 and Q2 2022, the ROE figures were 8.24% and 8.83%, respectively, showcasing relatively stable returns on equity for Amazon during these quarters.
- Finally, in Q1 2022, Amazon achieved a robust ROE of 15.98%, indicating efficient utilization of equity to generate profits compared to the following quarters.
In conclusion, Amazon's ROE performance has shown fluctuations across the quarters, with recent improvements suggesting enhanced profitability and operational efficiency. Continued monitoring of the ROE can provide valuable insights into Amazon's ability to generate returns for its shareholders.
Peer comparison
Dec 31, 2023