Amazon.com Inc. (NASDAQ:AMZN)

Goodwill and intangible assets exhibited consistent growth over the five-year period. A significant portion of this growth is attributable to increases in goodwill and contract-based intangible assets. Analysis reveals distinct trends within the different categories of intangible assets, suggesting evolving investment priorities.

Goodwill

Goodwill increased steadily from US$15,371 million in 2021 to US$23,273 million in 2025, representing a cumulative increase of approximately 51.5%. The rate of growth appears to be moderating in the later years, with smaller annual increases from 2023 to 2025.

Marketing-related Intangible Assets

Marketing-related intangible assets showed modest growth initially, increasing from US$2,286 million in 2021 to US$2,643 million in 2023. However, a slight decrease was observed in 2024 and 2025, falling to US$2,402 million. This suggests a potential shift in marketing strategy or a write-down of marketing asset value.

Contract-based Intangible Assets

Contract-based intangible assets demonstrated the most substantial growth among the categories, rising from US$2,327 million in 2021 to US$7,068 million in 2025. This represents a cumulative increase of over 203%. The growth rate accelerated significantly from 2022 onwards, indicating a growing emphasis on contractual agreements and partnerships.

Technology- and Content-based Intangible Assets

Technology- and content-based intangible assets experienced fluctuations. After a decline from 2021 to 2023, the value increased notably in 2024 to US$1,246 million, and continued to rise in 2025 to US$1,463 million. This suggests renewed investment or successful development in these areas.

Customer-related Intangible Assets

Customer-related intangible assets saw a significant increase in 2023, rising to US$749 million from US$197 million in 2021. However, the value decreased in the subsequent two years, reaching US$654 million in 2025. This volatility may reflect changes in customer base valuation or amortization policies.

Finite-lived Intangible Assets

Gross finite-lived intangible assets increased consistently from US$5,786 million in 2021 to US$11,587 million in 2025. Accumulated amortization also increased steadily, from US$1,826 million to US$3,553 million over the same period. Consequently, net finite-lived intangible assets grew from US$3,960 million to US$8,034 million, demonstrating the ongoing investment in and utilization of these assets.

Indefinite-lived Intangible Assets & IPR&D

Both indefinite-lived intangible assets and IPR&D and other remained constant at US$1,147 million and US$1,163 million respectively for most of the period, indicating stable valuation of these assets. A minor increase was observed in 2024.

Goodwill and Acquired Intangibles Combined

The combined value of goodwill and acquired intangible assets increased from US$20,478 million in 2021 to US$32,470 million in 2025, mirroring the growth in goodwill and overall acquired intangibles. This represents a substantial increase in value derived from acquisitions.

Overall, the data suggests a company actively engaged in acquisitions and investments in intangible assets, particularly those related to contracts. The fluctuations in marketing and customer-related assets warrant further investigation to understand the underlying drivers and potential implications for future performance.

The information presents a five-year trend of total assets and stockholders’ equity, both as reported and with an adjustment seemingly related to the removal of goodwill or intangible assets. A consistent difference exists between the reported and adjusted figures for both total assets and stockholders’ equity throughout the period, suggesting a systematic adjustment is being applied.

Total Assets Trend

Reported total assets demonstrate a consistent upward trend, increasing from US$420,549 million in 2021 to US$818,042 million in 2025. The adjusted total assets also exhibit an increasing trend, moving from US$405,178 million in 2021 to US$794,769 million in 2025. The difference between reported and adjusted total assets widens over time, starting at US$15,371 million in 2021 and reaching US$23,273 million in 2025. This indicates a growing amount of goodwill or intangible assets being removed from the asset base.

Stockholders’ Equity Trend

Reported stockholders’ equity also shows a clear upward trajectory, rising from US$138,245 million in 2021 to US$411,065 million in 2025. Similarly, adjusted stockholders’ equity increases from US$122,874 million in 2021 to US$387,792 million in 2025. The gap between reported and adjusted stockholders’ equity also expands over the period, beginning at US$15,371 million in 2021 and culminating in US$23,273 million in 2025. This parallel increase in the difference between reported and adjusted equity reinforces the conclusion that the adjustment impacts equity as well as assets, likely through the reduction of goodwill associated with acquisitions.

Adjustment Magnitude

The adjustment amount remains relatively constant as a percentage of both total assets and stockholders’ equity. In 2021, the adjustment represents approximately 3.7% of reported total assets and 11.1% of reported stockholders’ equity. By 2025, these percentages are approximately 2.8% and 5.7% respectively. While the absolute dollar amount of the adjustment increases, its proportional impact on the financial statements decreases over time, suggesting the largest adjustments occurred earlier in the period.

The consistent and material adjustments to both total assets and stockholders’ equity suggest a significant ongoing process of reassessing and potentially writing down goodwill or intangible assets. The widening dollar difference, coupled with the decreasing proportional impact, warrants further investigation into the nature and timing of these adjustments.

The financial metrics demonstrate a consistent pattern when goodwill is removed from the calculations. Generally, adjusted ratios are higher than their reported counterparts, indicating that the presence of goodwill suppresses these performance indicators. Over the five-year period, several trends are observable across the examined ratios.

Total Asset Turnover

Reported total asset turnover exhibits a declining trend, decreasing from 1.12 in 2021 to 0.88 in 2025. The adjusted ratio, while also decreasing, shows a more moderate decline, moving from 1.16 to 0.90 over the same period. The difference between reported and adjusted values remains relatively stable, suggesting goodwill consistently impacts this metric.

Financial Leverage

Reported financial leverage decreases notably from 3.04 in 2021 to 1.99 in 2025. The adjusted financial leverage mirrors this downward trend, declining from 3.30 to 2.05. The adjustment consistently results in a higher leverage ratio, reflecting the impact of goodwill on the asset base used in the calculation. The gap between reported and adjusted leverage narrows slightly over time.

Return on Equity (ROE)

Reported ROE experiences significant volatility, with a peak of 24.13% in 2021, a negative value of -1.86% in 2022, and a subsequent recovery to 18.89% in 2025. The adjusted ROE follows a similar pattern but consistently registers higher values than the reported ROE. The negative ROE in 2022 is slightly more pronounced when adjusted. The difference between reported and adjusted ROE remains relatively consistent throughout the period.

Return on Assets (ROA)

Reported ROA also demonstrates volatility, moving from 7.93% in 2021 to -0.59% in 2022, and then recovering to 9.49% in 2025. Similar to ROE, the adjusted ROA consistently exceeds the reported ROA. The negative ROA in 2022 is slightly more negative when adjusted. The difference between reported and adjusted ROA remains relatively stable.

In summary, removing goodwill from the asset base results in improved ratios across all metrics examined. The trends observed in the adjusted ratios largely mirror those of the reported ratios, but with consistently higher values. This suggests that goodwill has a suppressing effect on these performance indicators, and its presence should be considered when evaluating the company’s financial performance.

An examination of the financial information reveals trends in total assets and associated turnover ratios over a five-year period. Reported total assets consistently increased throughout the period, while adjusted total assets also exhibited growth, albeit at a slightly lower magnitude. Correspondingly, both reported and adjusted total asset turnover ratios demonstrate a declining trend.

Adjusted Total Assets

Adjusted total assets increased from US$405,178 million in 2021 to US$794,769 million in 2025. The rate of increase appeared to accelerate between 2022 and 2024, with a more moderate increase observed from 2024 to 2025. This suggests a potential shift in the company’s investment strategy or asset base composition.

Reported Total Asset Turnover

Reported total asset turnover decreased steadily from 1.12 in 2021 to 0.88 in 2025. This indicates a diminishing ability to generate sales revenue for each dollar of reported assets held. The decline, while consistent, suggests increasing capital intensity or potentially slower sales growth relative to asset investment.

Adjusted Total Asset Turnover

Adjusted total asset turnover followed a similar downward trajectory, moving from 1.16 in 2021 to 0.90 in 2025. The rate of decline was less pronounced than that of the reported ratio, suggesting that the adjustments made to total assets have a stabilizing effect on this metric. However, the overall trend still indicates decreasing efficiency in asset utilization. The difference between the reported and adjusted ratios remained relatively stable throughout the period.

The consistent decline in both reported and adjusted total asset turnover, despite increasing asset bases, warrants further investigation. Potential contributing factors could include changes in the company’s business model, increased investment in long-term assets, or a slowdown in revenue growth. The adjustments to total assets appear to mitigate the decline somewhat, but do not reverse the overall trend.

An examination of the financial information reveals trends in total assets, stockholders’ equity, and associated leverage ratios over a five-year period. Both reported and adjusted total assets demonstrate consistent growth annually. Stockholders’ equity also exhibits a similar upward trajectory, though with more pronounced increases in later years. The calculated financial leverage ratios, both reported and adjusted, show a decreasing trend over the observed timeframe.

Total Assets

Reported total assets increased from US$420,549 million in 2021 to US$818,042 million in 2025, representing a substantial overall increase. Adjusted total assets followed a similar pattern, growing from US$405,178 million to US$794,769 million during the same period. The difference between reported and adjusted total assets remains relatively consistent across the years, suggesting a systematic adjustment is being applied.

Stockholders’ Equity

Reported stockholders’ equity increased from US$138,245 million in 2021 to US$411,065 million in 2025. Adjusted stockholders’ equity also increased, moving from US$122,874 million to US$387,792 million. The growth rate in stockholders’ equity appears to accelerate from 2022 onwards, contributing to the declining leverage ratios. The gap between reported and adjusted equity also remains relatively stable.

Financial Leverage

Reported financial leverage decreased from 3.04 in 2021 to 1.99 in 2025. Adjusted financial leverage exhibited a similar decline, moving from 3.30 to 2.05 over the same period. The adjusted leverage ratio consistently exceeds the reported leverage ratio, indicating that the adjustments to total assets and equity result in a higher calculated leverage. The decreasing trend in both ratios suggests a strengthening of the company’s financial position, with a reduced reliance on debt financing relative to equity.

The consistent adjustments to both total assets and stockholders’ equity warrant further investigation to understand the nature of these adjustments and their impact on the reported financial position. However, the overall trend indicates improving financial health as evidenced by the declining leverage ratios.

Analysis reveals distinct trends in stockholders’ equity and associated return on equity metrics between 2021 and 2025. Reported stockholders’ equity demonstrates a consistent increase over the period, growing from US$138,245 million to US$411,065 million. Adjusted stockholders’ equity also exhibits growth, albeit at a slightly lower magnitude, increasing from US$122,874 million to US$387,792 million. The difference between reported and adjusted equity suggests the presence of items impacting reported equity that are being excluded in the adjusted calculation, potentially related to goodwill or intangible assets.

Reported Return on Equity (ROE)

Reported ROE experienced volatility during the analyzed period. It began at 24.13% in 2021, then decreased significantly to -1.86% in 2022. A recovery was observed in subsequent years, reaching 15.07% in 2023, 20.72% in 2024, and stabilizing at 18.89% in 2025. The negative ROE in 2022 indicates a net loss relative to reported equity during that year.

Adjusted Return on Equity (ROE)

Adjusted ROE mirrors the trend of reported ROE, though with differing magnitudes. It decreased from 27.15% in 2021 to -2.16% in 2022, a more pronounced decline than observed in the reported ROE. Subsequent years show recovery, with adjusted ROE reaching 16.99% in 2023, 22.54% in 2024, and 20.03% in 2025. The adjusted ROE consistently exceeds the reported ROE across all years, indicating that the adjustments made to stockholders’ equity positively influence profitability metrics.

The divergence between reported and adjusted ROE, particularly the larger negative value in adjusted ROE for 2022, warrants further investigation into the nature of the adjustments being made to stockholders’ equity. The consistent growth in both reported and adjusted equity suggests overall financial expansion, while the fluctuations in ROE highlight the impact of profitability and the adjustments made to equity on overall returns. The stabilization of ROE in 2024 and 2025 may indicate a period of more consistent earnings performance.

The reported and adjusted total assets exhibited a consistent upward trajectory from 2021 through 2025. However, the rate of increase accelerated notably between 2023 and 2025. Analysis of the return on assets reveals a more complex pattern, with fluctuations occurring over the five-year period.

Reported Return on Assets (ROA)

Reported ROA experienced a decline from 7.93% in 2021 to -0.59% in 2022, indicating a significant decrease in profitability relative to total assets. A recovery was then observed, with ROA increasing to 5.76% in 2023 and further to 9.48% in 2024. The reported ROA remained relatively stable at 9.49% in 2025.

Adjusted Return on Assets (ROA)

The adjusted ROA mirrored the trend of the reported ROA, declining from 8.23% in 2021 to -0.62% in 2022. Similar to the reported figures, an increase was noted in 2023, reaching 6.02%, followed by a rise to 9.84% in 2024. The adjusted ROA concluded the period at 9.77% in 2025, demonstrating a slight decrease from the prior year.

Comparison of Reported and Adjusted ROA

The adjusted ROA consistently presented a slightly higher value than the reported ROA across all years examined. This suggests that the adjustments made to total assets positively impacted the calculated return. The difference between the two metrics remained relatively small, indicating that the impact of the adjustments, while present, was not substantial.

Overall Trend

Despite the initial decline in 2022, both reported and adjusted ROA demonstrated a strong recovery and subsequent stabilization. The increasing asset base, coupled with the improved ROA figures from 2023 onwards, suggests enhanced efficiency in asset utilization and profitability during the latter part of the analyzed period.