Stock Analysis on Net
Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Amazon.com Inc., adjustment to net income (loss)

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income (loss) (as reported) 30,425 (2,722) 33,364 21,331 11,588
Add: Net change in available-for-sale debt securities 416 (525) (377) 245 79
Net income (loss) (adjusted) 30,841 (3,247) 32,987 21,576 11,667

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Amazon.com Inc., adjusted profitability ratios

Microsoft Excel
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 5.37% -0.63% 7.02% 5.59% 4.16%
Return on Equity (ROE)
Reported ROE 15.07% -1.86% 24.13% 22.84% 18.67%
Adjusted ROE 15.28% -2.22% 23.86% 23.10% 18.80%
Return on Assets (ROA)
Reported ROA 5.76% -0.59% 7.93% 6.64% 5.14%
Adjusted ROA 5.84% -0.70% 7.84% 6.72% 5.18%

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).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by 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 ROE A profitability ratio calculated as adjusted net income divided by 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 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., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 30,841 (3,247) 32,987 21,576 11,667
Net sales 574,785 513,983 469,822 386,064 280,522
Profitability Ratio
Adjusted net profit margin2 5.37% -0.63% 7.02% 5.59% 4.16%

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 × 30,841 ÷ 574,785 = 5.37%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by 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 Return on Equity (ROE)

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 30,841 (3,247) 32,987 21,576 11,667
Stockholders’ equity 201,875 146,043 138,245 93,404 62,060
Profitability Ratio
Adjusted ROE2 15.28% -2.22% 23.86% 23.10% 18.80%

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) ÷ Stockholders’ equity
= 100 × 30,841 ÷ 201,875 = 15.28%

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

Adjusted Return on Assets (ROA)

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 30,841 (3,247) 32,987 21,576 11,667
Total assets 527,854 462,675 420,549 321,195 225,248
Profitability Ratio
Adjusted ROA2 5.84% -0.70% 7.84% 6.72% 5.18%

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) ÷ Total assets
= 100 × 30,841 ÷ 527,854 = 5.84%

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