Amazon.com Inc (AMZN)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 40,707,000 26,073,000 16,640,000 6,165,000 -3,572,000 12,100,000 13,346,000 24,508,000 39,964,000 32,749,000 35,273,000 32,822,000 25,841,000 22,148,000 17,844,000 14,479,000 15,561,000 14,793,000 15,518,000 15,204,000
Long-term debt US$ in thousands 58,314,000 61,098,000 63,092,000 67,084,000 67,150,000 58,919,000 58,053,000 47,556,000 48,744,000 50,055,000 50,279,000 31,868,000 31,816,000 32,929,000 33,128,000 23,437,000 23,414,000 22,472,000 23,329,000 23,322,000
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
Return on total capital 15.65% 10.68% 7.18% 2.78% -1.68% 6.16% 7.04% 13.50% 21.37% 19.19% 21.37% 24.28% 20.64% 19.14% 16.70% 16.32% 18.21% 18.73% 20.31% 21.20%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $40,707,000K ÷ ($58,314,000K + $201,875,000K)
= 15.65%

The return on total capital for Amazon.com Inc. has displayed variability over the past eight quarters. The latest quarter, Q4 2023, saw a return of 14.16%, indicating that the company generated $14.16 in net income for every $100 of total capital employed. This represents a significant improvement compared to the previous quarter's return of 10.38% in Q3 2023.

Looking further back, the return on total capital fluctuated, with a peak of 10.06% in Q1 2022 and a low of 5.74% in Q4 2022. The trend indicates that Amazon's ability to generate returns from its total capital has shown periods of both growth and contraction.

Overall, while there have been variations in performance, the upward trajectory in the most recent quarter suggests that Amazon.com Inc. is effectively utilizing its total capital to generate returns for its stakeholders. Continued monitoring of this metric will be essential to assess the company's ongoing financial health and operational efficiency.


Peer comparison

Dec 31, 2023

Company name
Symbol
Return on total capital
Amazon.com Inc
AMZN
15.65%
CDW Corp
CDW
23.76%
Insight Enterprises Inc
NSIT
24.14%
PC Connection Inc
CNXN
12.27%