Amazon.com Inc (AMZN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 58,314,000 | 67,150,000 | 48,744,000 | 31,816,000 | 23,414,000 |
| Total assets | US$ in thousands | 527,854,000 | 462,675,000 | 420,549,000 | 321,195,000 | 225,248,000 |
| Debt-to-assets ratio | 0.11 | 0.15 | 0.12 | 0.10 | 0.10 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $58,314,000K ÷ $527,854,000K
= 0.11
The trend analysis of Amazon.com Inc.'s debt-to-assets ratio over the past five years shows fluctuations but generally indicates a conservative debt management approach. The ratio has been relatively stable, ranging from 0.10 to 0.15. A decreasing trend from 0.15 in 2022 to 0.11 in 2023 suggests a decreasing reliance on debt to finance assets.
Amazon's consistently low debt-to-assets ratio indicates that a significant portion of its assets is financed by equity rather than debt. This conservative approach to capital structure enhances the company's financial stability and reduces the risk associated with high debt levels. Overall, the trend in Amazon's debt-to-assets ratio reflects a prudent financial strategy focused on maintaining a healthy balance between debt and assets.
Peer comparison
Dec 31, 2023