Amazon.com Inc (AMZN)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		0.18	0.21	0.23	0.27	0.29	0.33	0.37	0.43	0.46	0.43	0.44	0.35	0.35	0.42	0.44	0.31	0.34	0.40	0.45	0.36

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $52,623,000K ÷ $285,970,000K
= 0.18

The debt-to-equity ratio of Amazon.com Inc has been fluctuating over the past few years. The ratio indicates how much debt the company is using to finance its operations relative to its shareholders' equity.

The trend shows a gradual decrease in the debt-to-equity ratio from 0.36 as of March 31, 2020, to 0.18 as of December 31, 2024. This suggests that Amazon has been reducing its reliance on debt over this period. A lower debt-to-equity ratio generally indicates a lower financial risk for the company, as it implies that the company is relying more on equity financing rather than debt financing.

However, it is important to note that a very low debt-to-equity ratio may signal that the company is not taking advantage of leverage to boost its returns, while a very high ratio could indicate excessive debt that may pose a risk to the company's financial stability. Therefore, it is crucial for investors and analysts to consider other financial metrics and industry benchmarks when evaluating Amazon's overall financial health and risk profile.