Amazon.com Inc (AMZN)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	52,623,000	58,314,000	67,150,000	48,744,000	31,816,000
Total assets	US$ in thousands	624,894,000	527,854,000	462,675,000	420,549,000	321,195,000
Debt-to-assets ratio		0.08	0.11	0.15	0.12	0.10

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $52,623,000K ÷ $624,894,000K
= 0.08

The debt-to-assets ratio of Amazon.com Inc has experienced fluctuations over the years based on the provided data. As of December 31, 2020, the ratio was 0.10, indicating that the company had a relatively low level of debt relative to its total assets. This suggests a conservative capital structure at that time.

However, by December 31, 2021, the ratio had increased to 0.12, signaling a slight uptick in the proportion of debt to assets. This could imply an increased borrowing or leveraging activity during that period.

Subsequently, by December 31, 2022, the debt-to-assets ratio rose further to 0.15, indicating a higher reliance on debt to finance its operations and investments. This could potentially raise concerns about the company's financial risk and solvency.

The ratio then decreased to 0.11 by December 31, 2023, potentially suggesting a reduction in debt or an increase in assets during that year. This may indicate a strategic shift in the company's capital structure management.

Finally, by December 31, 2024, the debt-to-assets ratio decreased to 0.08, signaling a lower level of debt relative to assets compared to the previous year. This could indicate a more conservative approach to financing its operations and growth, potentially enhancing the company's financial stability.

Overall, the trend in Amazon.com Inc's debt-to-assets ratio reflects varying levels of leverage and capital structure management over the years, highlighting the importance of closely monitoring these ratios for insights into the company's financial health and risk profile.