Amazon.com Inc (AMZN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 624,894,000 | 527,854,000 | 462,675,000 | 420,549,000 | 321,195,000 |
| Total stockholders’ equity | US$ in thousands | 285,970,000 | 201,875,000 | 146,043,000 | 138,245,000 | 93,404,000 |
| Financial leverage ratio | 2.19 | 2.61 | 3.17 | 3.04 | 3.44 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $624,894,000K ÷ $285,970,000K
= 2.19
The financial leverage ratio of Amazon.com Inc has shown a varying trend over the past five years. Starting at 3.44 in December 31, 2020, the ratio decreased to 3.04 by December 31, 2021, indicating a reduction in the company's reliance on debt to finance its operations. However, there was a slight increase in the ratio to 3.17 by December 31, 2022, before decreasing significantly to 2.61 by December 31, 2023. This sharp decrease suggests a more efficient capital structure with a lower proportion of debt in the company's capital. By December 31, 2024, the financial leverage ratio further declined to 2.19, reflecting a continued improvement in the company's financial health and debt management. Overall, the decreasing trend in the financial leverage ratio indicates that Amazon.com Inc is progressively reducing its debt levels relative to its equity, which could enhance its financial stability and flexibility in the long run.
Peer comparison
Dec 31, 2024