Amazon.com Inc (AMZN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 66,828,000 | 60,004,000 | 55,584,000 | 49,306,000 | 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 |
| Long-term debt | US$ in thousands | 52,623,000 | 54,890,000 | 54,889,000 | 57,634,000 | 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 |
| 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 |
| Return on total capital | 19.74% | 19.11% | 19.08% | 17.98% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $66,828,000K ÷ ($52,623,000K + $285,970,000K)
= 19.74%
The return on total capital for Amazon.com Inc has shown fluctuations over the past few years, ranging from a low of -1.68% on December 31, 2022, to a high of 24.28% on March 31, 2021. This metric measures the efficiency of the company in generating profits from its total invested capital, including both debt and equity.
The return on total capital peaked at 24.28% in Q1 2021, indicating a strong performance in utilizing its capital effectively to generate returns for investors. However, there have been some declines since then, with the metric falling to 7.04% in Q2 2022, and further declining to -1.68% in Q4 2022, turning negative momentarily.
Subsequently, there was a recovery in the return on total capital, reaching 19.74% by the end of Q4 2024. This rebound suggests that Amazon.com Inc has been able to improve its efficiency in capital allocation and generate more substantial returns compared to the previous quarters. Overall, while there have been fluctuations in performance, the company has demonstrated an ability to adapt and enhance its capital utilization efficiency over the period under review.
Peer comparison
Dec 31, 2024