Amazon.com Inc (AMZN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 66,828,000 | 60,004,000 | 55,584,000 | 49,306,000 | 40,707,000 | 26,073,000 | 16,640,000 | 6,165,000 | -3,572,000 | 12,100,000 | 13,346,000 | 24,508,000 | 39,964,000 | 32,749,000 | 35,273,000 | 32,822,000 | 25,841,000 | 22,148,000 | 17,844,000 | 14,479,000 |
| Interest expense (ttm) | US$ in thousands | 644,000 | 1,357,000 | 2,163,000 | 3,003,000 | 3,182,000 | 3,163,000 | 2,974,000 | 2,718,000 | 2,367,000 | 2,155,000 | 2,031,000 | 1,882,000 | 1,809,000 | 1,741,000 | 1,676,000 | 1,644,000 | 1,647,000 | 1,688,000 | 1,656,000 | 1,636,000 |
| Interest coverage | 103.77 | 44.22 | 25.70 | 16.42 | 12.79 | 8.24 | 5.60 | 2.27 | -1.51 | 5.61 | 6.57 | 13.02 | 22.09 | 18.81 | 21.05 | 19.96 | 15.69 | 13.12 | 10.78 | 8.85 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $66,828,000K ÷ $644,000K
= 103.77
Interest coverage ratio is a financial metric used to evaluate a company's ability to cover its interest expenses with its operating income. The interest coverage ratio for Amazon.com Inc has shown fluctuations over the period under consideration.
Starting at 8.85 on March 31, 2020, the interest coverage ratio improved steadily to reach its peak at 103.77 on December 31, 2024. This suggests that Amazon.com's operating income was sufficient to cover its interest expenses over the years, with a significant increase in coverage towards the end of the period.
However, it is important to note that the interest coverage ratio experienced a sharp decline from June 30, 2022, reaching a negative value (-1.51) on December 31, 2022. This negative ratio indicates that Amazon.com's operating income was not enough to cover its interest payments during that period, which may raise concerns about the company's financial health and ability to meet its debt obligations.
Subsequently, the interest coverage ratio improved but remained relatively volatile from March 31, 2023, to September 30, 2024, showing fluctuations in Amazon.com's ability to cover its interest expenses with its operating income.
Overall, while the interest coverage ratio for Amazon.com Inc has exhibited a mix of positive trends and fluctuations, it is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial stability and debt repayment capacity.
Peer comparison
Dec 31, 2024