Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Amazon.com Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. Federal	8,652)	2,175)	2,129)	1,835)	162)
U.S. State	2,158)	1,074)	763)	626)	276)
International	2,186)	1,682)	2,209)	956)	1,140)
Current taxes	12,996)	4,931)	5,101)	3,417)	1,578)
U.S. Federal	(5,505)	(6,686)	155)	(151)	914)
U.S. State	(498)	(1,302)	(178)	(190)	8)
International	127)	(160)	(287)	(213)	(126)
Deferred taxes	(5,876)	(8,148)	(310)	(554)	796)
Provision (benefit) for income taxes, net	7,120)	(3,217)	4,791)	2,863)	2,374)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Amazon.com Inc. current taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred taxes	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Amazon.com Inc. deferred taxes decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Provision (benefit) for income taxes, net	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Amazon.com Inc. provision (benefit) for income taxes, net decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Amazon.com Inc., effective income tax rate (EITR) reconciliation

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective tax rate	18.96%	54.19%	12.56%	11.84%	16.99%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Amazon.com Inc. effective tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Amazon.com Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Loss carryforwards U.S., Federal/States	610)	386)	228)	245)	188)
Loss carryforwards, Foreign	2,796)	2,831)	2,417)	3,876)	3,232)
Accrued liabilities, reserves, and other expenses	3,751)	3,280)	2,821)	2,457)	1,373)
Stock-based compensation	5,279)	4,295)	2,738)	2,033)	1,585)
Depreciation and amortization	1,114)	1,009)	941)	1,886)	2,385)
Operating lease liabilities	19,922)	18,285)	15,399)	10,183)	6,648)
Capitalized research and development	14,800)	6,824)	—)	—)	—)
Other items	745)	1,023)	603)	559)	728)
Tax credits	1,582)	950)	626)	207)	772)
Gross deferred tax assets	50,599)	38,883)	25,773)	21,446)	16,911)
Valuation allowances	(4,811)	(4,374)	(3,596)	(5,803)	(5,754)
Deferred tax assets, net of valuation allowances	45,788)	34,509)	22,177)	15,643)	11,157)
Depreciation and amortization	(12,454)	(9,039)	(3,562)	(5,508)	(5,507)
Operating lease assets	(18,648)	(17,140)	(14,422)	(9,539)	(6,331)
Assets held for investment	—)	—)	(4,019)	(569)	—)
Other items	(1,489)	(817)	(668)	(893)	(640)
Deferred tax liabilities	(32,591)	(26,996)	(22,671)	(16,509)	(12,478)
Net deferred tax assets (liabilities), net of valuation allowances	13,197)	7,513)	(494)	(866)	(1,321)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Amazon.com Inc. gross deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, net of valuation allowances	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Amazon.com Inc. deferred tax assets, net of valuation allowances increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities), net of valuation allowances	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Amazon.com Inc. net deferred tax assets (liabilities), net of valuation allowances increased from 2021 to 2022 and from 2022 to 2023.

Amazon.com Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	527,854)	462,675)	420,549)	321,195)	225,248)
Less: Noncurrent deferred tax assets, net	13,197)	7,513)	—)	—)	—)
Total assets (adjusted)	514,657)	455,162)	420,549)	321,195)	225,248)
Adjustment to Total Liabilities
Total liabilities (as reported)	325,979)	316,632)	282,304)	227,791)	163,188)
Less: Noncurrent deferred tax liabilities, net	—)	—)	494)	866)	1,321)
Total liabilities (adjusted)	325,979)	316,632)	281,810)	226,925)	161,867)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	201,875)	146,043)	138,245)	93,404)	62,060)
Less: Net deferred tax assets (liabilities)	13,197)	7,513)	(494)	(866)	(1,321)
Stockholders’ equity (adjusted)	188,678)	138,530)	138,739)	94,270)	63,381)
Adjustment to Net Income (loss)
Net income (loss) (as reported)	30,425)	(2,722)	33,364)	21,331)	11,588)
Add: Deferred income tax expense (benefit)	(5,876)	(8,148)	(310)	(554)	796)
Net income (loss) (adjusted)	24,549)	(10,870)	33,054)	20,777)	12,384)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Amazon.com Inc., Financial Data: Reported vs. Adjusted

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Amazon.com Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	5.29%	-0.53%	7.10%	5.53%	4.13%
Adjusted net profit margin	4.27%	-2.11%	7.04%	5.38%	4.41%
Total Asset Turnover
Reported total asset turnover	1.09	1.11	1.12	1.20	1.25
Adjusted total asset turnover	1.12	1.13	1.12	1.20	1.25
Financial Leverage
Reported financial leverage	2.61	3.17	3.04	3.44	3.63
Adjusted financial leverage	2.73	3.29	3.03	3.41	3.55
Return on Equity (ROE)
Reported ROE	15.07%	-1.86%	24.13%	22.84%	18.67%
Adjusted ROE	13.01%	-7.85%	23.82%	22.04%	19.54%
Return on Assets (ROA)
Reported ROA	5.76%	-0.59%	7.93%	6.64%	5.14%
Adjusted ROA	4.77%	-2.39%	7.86%	6.47%	5.50%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Amazon.com Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Amazon.com Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Amazon.com Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Amazon.com Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Amazon.com Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Amazon.com Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	30,425)	(2,722)	33,364)	21,331)	11,588)
Net sales	574,785)	513,983)	469,822)	386,064)	280,522)
Profitability Ratio
Net profit margin¹	5.29%	-0.53%	7.10%	5.53%	4.13%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss)	24,549)	(10,870)	33,054)	20,777)	12,384)
Net sales	574,785)	513,983)	469,822)	386,064)	280,522)
Profitability Ratio
Adjusted net profit margin²	4.27%	-2.11%	7.04%	5.38%	4.41%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 30,425 ÷ 574,785 = 5.29%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net sales
= 100 × 24,549 ÷ 574,785 = 4.27%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Amazon.com Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	574,785)	513,983)	469,822)	386,064)	280,522)
Total assets	527,854)	462,675)	420,549)	321,195)	225,248)
Activity Ratio
Total asset turnover¹	1.09	1.11	1.12	1.20	1.25
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	574,785)	513,983)	469,822)	386,064)	280,522)
Adjusted total assets	514,657)	455,162)	420,549)	321,195)	225,248)
Activity Ratio
Adjusted total asset turnover²	1.12	1.13	1.12	1.20	1.25

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 574,785 ÷ 527,854 = 1.09

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 574,785 ÷ 514,657 = 1.12

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Amazon.com Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	527,854)	462,675)	420,549)	321,195)	225,248)
Stockholders’ equity	201,875)	146,043)	138,245)	93,404)	62,060)
Solvency Ratio
Financial leverage¹	2.61	3.17	3.04	3.44	3.63
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	514,657)	455,162)	420,549)	321,195)	225,248)
Adjusted stockholders’ equity	188,678)	138,530)	138,739)	94,270)	63,381)
Solvency Ratio
Adjusted financial leverage²	2.73	3.29	3.03	3.41	3.55

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 527,854 ÷ 201,875 = 2.61

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 514,657 ÷ 188,678 = 2.73

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Amazon.com Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	30,425)	(2,722)	33,364)	21,331)	11,588)
Stockholders’ equity	201,875)	146,043)	138,245)	93,404)	62,060)
Profitability Ratio
ROE¹	15.07%	-1.86%	24.13%	22.84%	18.67%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss)	24,549)	(10,870)	33,054)	20,777)	12,384)
Adjusted stockholders’ equity	188,678)	138,530)	138,739)	94,270)	63,381)
Profitability Ratio
Adjusted ROE²	13.01%	-7.85%	23.82%	22.04%	19.54%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 30,425 ÷ 201,875 = 15.07%

² Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 24,549 ÷ 188,678 = 13.01%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Amazon.com Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	30,425)	(2,722)	33,364)	21,331)	11,588)
Total assets	527,854)	462,675)	420,549)	321,195)	225,248)
Profitability Ratio
ROA¹	5.76%	-0.59%	7.93%	6.64%	5.14%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss)	24,549)	(10,870)	33,054)	20,777)	12,384)
Adjusted total assets	514,657)	455,162)	420,549)	321,195)	225,248)
Profitability Ratio
Adjusted ROA²	4.77%	-2.39%	7.86%	6.47%	5.50%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 30,425 ÷ 527,854 = 5.76%

² Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 24,549 ÷ 514,657 = 4.77%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Amazon.com Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Amazon.com Inc. (NASDAQ:AMZN)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Amazon.com Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Amazon.com Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)