Amazon.com Inc (AMZN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 68,593,000 | 40,707,000 | -3,572,000 | 39,964,000 | 25,841,000 |
| Long-term debt | US$ in thousands | 52,623,000 | 58,314,000 | 67,150,000 | 48,744,000 | 31,816,000 |
| Total stockholders’ equity | US$ in thousands | 285,970,000 | 201,875,000 | 146,043,000 | 138,245,000 | 93,404,000 |
| Return on total capital | 20.26% | 15.65% | -1.68% | 21.37% | 20.64% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $68,593,000K ÷ ($52,623,000K + $285,970,000K)
= 20.26%
Based on the provided data, Amazon.com Inc's return on total capital has shown some fluctuations over the past five years. The return on total capital was 20.64% as of December 31, 2020, and it increased to 21.37% by December 31, 2021. However, there was a significant decrease to -1.68% by December 31, 2022, indicating a negative return on total capital for that period.
Subsequently, the return on total capital rebounded to 15.65% by December 31, 2023, showing an improvement from the previous year. Finally, by December 31, 2024, the return on total capital increased further to 20.26%. Overall, Amazon.com Inc's return on total capital has demonstrated variability, with a mix of positive and negative trends over the five-year period analyzed. Further analysis and context would be necessary to understand the factors driving these fluctuations and their implications for the company's financial performance and efficiency in utilizing its total capital.
Peer comparison
Dec 31, 2024