Amazon.com Inc (AMZN)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 527,854,000 | 486,883,000 | 477,607,000 | 464,378,000 | 462,675,000 | 428,362,000 | 419,728,000 | 410,767,000 | 420,549,000 | 382,406,000 | 360,319,000 | 323,077,000 | 321,195,000 | 282,179,000 | 258,314,000 | 221,238,000 | 225,248,000 | 199,099,000 | 191,351,000 | 178,102,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 62,060,000 | 56,508,000 | 53,061,000 | 48,410,000 |
| Financial leverage ratio | 2.61 | 2.66 | 2.83 | 3.01 | 3.17 | 3.12 | 3.19 | 3.07 | 3.04 | 3.17 | 3.14 | 3.13 | 3.44 | 3.41 | 3.50 | 3.39 | 3.63 | 3.52 | 3.61 | 3.68 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $527,854,000K ÷ $201,875,000K
= 2.61
The financial leverage ratio for Amazon.com Inc. has shown a fluctuating trend over the past eight quarters. The ratio decreased from 3.17 in Q4 2022 to 2.61 in Q4 2023 before gradually increasing to 2.66 in Q3 2023. However, in the subsequent quarters, the ratio experienced a significant jump to 2.83 in Q2 2023 and further increased to 3.01 in Q1 2023.
The variations in the financial leverage ratio indicate shifts in the company's capital structure and the extent to which it relies on debt financing. A higher financial leverage ratio suggests a greater reliance on debt to finance operations, which can amplify returns but also increase financial risk. Conversely, a lower ratio signifies higher equity financing, which may offer more stability but potentially lower returns.
Analyzing Amazon's financial leverage ratio trend can provide insights into the company's financing decisions, risk management strategies, and overall financial health. Continued monitoring and comparison with industry benchmarks can help stakeholders assess the company's leverage position and its implications on performance and sustainability.
Peer comparison
Dec 31, 2023