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