Amazon.com Inc (AMZN)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	285,970,000	201,875,000	146,043,000	138,245,000	93,404,000
Debt-to-capital ratio		0.16	0.22	0.31	0.26	0.25

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $52,623,000K ÷ ($52,623,000K + $285,970,000K)
= 0.16

The debt-to-capital ratio of Amazon.com Inc has shown a fluctuating trend over the past five years. Starting at 0.25 in December 31, 2020, the ratio increased to 0.26 by December 31, 2021, indicating a slight rise in debt proportion relative to the total capital employed. In the subsequent year, the ratio further escalated to 0.31 by December 31, 2022, signifying a higher reliance on debt financing compared to the previous year.

However, there was a notable decrease in the debt-to-capital ratio to 0.22 by December 31, 2023, suggesting a reduction in debt exposure relative to the overall capital structure. This decline could potentially indicate improved financial health and a lower debt burden on the company during that period.

By December 31, 2024, the debt-to-capital ratio dropped even further to 0.16, marking a significant decrease in the proportion of debt in relation to the total capital. This reduction may imply a more conservative debt management approach by Amazon.com Inc, leading to enhanced financial stability and lower financial risk.

Overall, the fluctuating trend in the debt-to-capital ratio of Amazon.com Inc highlights varying levels of debt utilization and capital structure adjustments over the five-year period, reflecting the company's evolving financial strategy and risk management decisions.