Analysis of Investments
Paying user area
Try for free
Amazon.com Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Amazon.com Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Amazon.com Inc., adjustment to net income (loss)
US$ in millions
| 12 months ended: | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|---|
| Net income (loss) (as reported) | ||||||
| Add: Net change in available-for-sale debt securities | ||||||
| Net income (loss) (adjusted) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Reported net income exhibited significant volatility over the five-year period. Initially strong at US$33,364 million in 2021, it experienced a substantial decline, resulting in a net loss of US$2,722 million in 2022. Subsequent years demonstrated recovery, with net income increasing to US$30,425 million in 2023, US$59,248 million in 2024, and reaching US$77,670 million in 2025. Adjusted net income mirrored this pattern, though the magnitude of the loss in 2022 was slightly larger, at US$3,247 million, and the growth trajectory was also more pronounced, culminating in US$101,701 million in 2025.
- Net Income Trend
- A marked fluctuation in net income is apparent. The loss in 2022 represents a significant deviation from the preceding year and the subsequent years. The recovery from 2023 through 2025 indicates a strengthening financial performance. The difference between reported and adjusted net income suggests the impact of mark-to-market adjustments on available-for-sale securities.
- Impact of Adjustments
- The difference between reported and adjusted net income remained relatively consistent across the period, ranging from approximately US$377 million to US$625 million. This indicates that adjustments related to mark-to-market valuation of available-for-sale securities consistently reduced reported net income. The larger adjustment in 2022, coinciding with the net loss, suggests a more substantial unrealized loss on these securities during that year.
- Growth Rate
- From 2021 to 2025, adjusted net income increased substantially. While the initial decline from 2021 to 2022 was significant, the subsequent growth from 2022 to 2025 was more pronounced than the growth from 2021 to 2022. This suggests an acceleration in profitability following the challenging period in 2022.
Overall, the financial performance demonstrated a recovery from a substantial downturn in 2022, with both reported and adjusted net income showing strong growth in the following years. The consistent adjustments to net income highlight the influence of available-for-sale securities valuations on the overall financial results.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Amazon.com Inc., adjusted profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The profitability ratios demonstrate a period of volatility followed by improvement. Reported and adjusted profitability metrics initially declined in 2022 before exhibiting a consistent upward trend through 2025. The adjustments made to net profit and returns appear to slightly dampen the magnitude of both positive and negative performance, suggesting the presence of mark-to-market adjustments on available-for-sale securities impacting reported results.
- Net Profit Margin
- Reported net profit margin experienced a significant decrease from 7.10% in 2021 to -0.53% in 2022. This was followed by a recovery, reaching 9.29% in 2024 and further increasing to 10.83% in 2025. The adjusted net profit margin mirrored this pattern, moving from 7.02% to -0.63% in 2022, and then to 10.28% and 14.19% in 2024 and 2025 respectively. The difference between reported and adjusted margins remained relatively consistent across all periods, indicating a consistent impact from the adjustments.
- Return on Equity (ROE)
- Reported ROE followed a similar trajectory to the net profit margin, declining sharply from 24.13% in 2021 to -1.86% in 2022. Subsequent years showed improvement, with ROE reaching 20.72% in 2024 and 18.89% in 2025. Adjusted ROE exhibited the same pattern, moving from 23.86% to -2.22% in 2022, and then to 22.94% and 24.74% in 2024 and 2025. The adjustments resulted in slightly lower ROE figures compared to the reported values, but the overall trend remained consistent.
- Return on Assets (ROA)
- Reported ROA decreased from 7.93% in 2021 to -0.59% in 2022, before recovering to 9.48% in 2024 and remaining stable at 9.49% in 2025. Adjusted ROA mirrored this trend, declining to -0.70% in 2022 and increasing to 10.50% and 12.43% in 2024 and 2025. The adjustments consistently lowered the ROA figures, and the gap between reported and adjusted ROA widened in the later years, suggesting a growing impact from the mark-to-market adjustments on available-for-sale securities.
The consistent difference between reported and adjusted ratios suggests that fluctuations in the value of available-for-sale securities are a significant factor influencing reported profitability. The substantial improvement in all ratios from 2022 to 2025 indicates a strong recovery and enhanced profitability during that period, even when accounting for these adjustments.
Amazon.com Inc., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net sales
= 100 × ÷ =
The period under review demonstrates significant fluctuations in profitability metrics, followed by a strong upward trend. Reported and adjusted net income experienced a substantial decline in 2022 before recovering and exhibiting robust growth through 2025. This pattern is mirrored in the corresponding net profit margins.
- Reported Net Profit Margin
- The reported net profit margin decreased from 7.10% in 2021 to a loss of -0.53% in 2022. A recovery began in 2023, reaching 5.29%, and accelerated through 2025, culminating in a margin of 10.83%. This indicates improving profitability based on reported figures.
- Adjusted Net Profit Margin
- The adjusted net profit margin followed a similar trajectory to the reported margin. It declined from 7.02% in 2021 to -0.63% in 2022, then increased to 5.37% in 2023. The growth rate accelerated in subsequent years, reaching 10.28% in 2024 and 14.19% in 2025. The adjusted margin consistently exceeded the reported margin throughout the period, suggesting that certain non-recurring items negatively impacted reported net income.
The divergence between reported and adjusted net income, particularly in 2022, highlights the impact of specific adjustments. The substantial increase in both reported and adjusted net income, and consequently the net profit margins, from 2023 to 2025 suggests successful implementation of strategic initiatives or favorable market conditions. The adjusted net profit margin’s higher growth rate and consistently higher values than the reported margin indicate that the adjustments made provide a clearer picture of underlying operational profitability.
- Overall Trend
- A clear trend of recovery and expansion is observed from 2022 onwards. The increasing net profit margins, both reported and adjusted, suggest improved efficiency and/or increased revenue relative to costs. The accelerated growth in 2024 and 2025 warrants further investigation to identify the key drivers of this performance.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Stockholders’ equity
= 100 × ÷ =
The period under review demonstrates significant fluctuations in reported and adjusted net income, which consequently impact return on equity (ROE) metrics. A notable shift from profitability to loss and back to substantial gains is evident. The adjusted ROE generally mirrors the reported ROE trend, though with slight variations in magnitude.
- Reported Net Income and ROE
- Reported net income experienced a substantial decline from US$33,364 million in 2021 to a loss of US$2,722 million in 2022. This resulted in a corresponding decrease in reported ROE from 24.13% to -1.86%. A recovery began in 2023, with reported net income reaching US$30,425 million and reported ROE increasing to 15.07%. Further growth was observed in 2024 and 2025, with reported net income rising to US$59,248 million and US$77,670 million respectively, and reported ROE reaching 20.72% and 18.89%.
- Adjusted Net Income and ROE
- Adjusted net income followed a similar pattern to reported net income, moving from US$32,987 million in 2021 to a loss of US$3,247 million in 2022. The adjusted ROE decreased from 23.86% to -2.22% over the same period. Recovery commenced in 2023, with adjusted net income at US$30,841 million and adjusted ROE at 15.28%. Continued expansion in 2024 and 2025 saw adjusted net income increase to US$65,592 million and US$101,701 million, with adjusted ROE rising to 22.94% and 24.74% respectively.
- ROE Comparison
- The adjusted ROE consistently presents a slightly lower value than the reported ROE across all years. This suggests that adjustments to net income generally reduce the calculated ROE. The difference between reported and adjusted ROE is relatively small, indicating that the adjustments are not drastically altering the overall profitability picture. The largest difference is observed in 2025, with a 0.85% difference.
- Overall Trend
- A clear U-shaped trend is observed in both reported and adjusted ROE. The period began with strong profitability in 2021, experienced a significant downturn in 2022, and then demonstrated a consistent recovery and growth trajectory through 2025. The ROE values in 2024 and 2025 suggest a return to a more stable and profitable operating environment.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Total assets
= 100 × ÷ =
The period under review demonstrates significant fluctuations in profitability metrics, with a notable recovery and subsequent growth trend. Reported and adjusted net income experienced a substantial decline in 2022 before rebounding strongly in 2023 and continuing to increase through 2025. This pattern is reflected in both the Reported Return on Assets (ROA) and the Adjusted ROA.
- Net Income Trends
- Reported net income moved from a positive US$33,364 million in 2021 to a loss of US$2,722 million in 2022. This was followed by a recovery to US$30,425 million in 2023, and further growth to US$59,248 million in 2024 and US$77,670 million in 2025. Adjusted net income mirrored this trend, experiencing a similar decline in 2022 (US$-3,247 million) and subsequent increases, reaching US$101,701 million in 2025.
- Reported ROA Analysis
- Reported ROA followed the net income trend. It decreased from 7.93% in 2021 to -0.59% in 2022, indicating a significant decline in profitability relative to assets. A recovery began in 2023, with ROA reaching 5.76%, and continued through 2024 (9.48%) and 2025 (9.49%). The ROA stabilized between 2024 and 2025, showing minimal change.
- Adjusted ROA Analysis
- Adjusted ROA exhibited a similar pattern to the Reported ROA, moving from 7.84% in 2021 to -0.70% in 2022. The recovery was also evident, with Adjusted ROA reaching 5.84% in 2023, 10.50% in 2024, and increasing to 12.43% in 2025. The Adjusted ROA demonstrated a stronger growth trajectory than the Reported ROA, particularly in the later years of the period.
The divergence between Reported and Adjusted ROA, while relatively small, suggests the presence of items impacting reported earnings that are adjusted for in the Adjusted ROA calculation. The consistent upward trend in both ROA metrics from 2023 to 2025 indicates improving profitability and efficient asset utilization. The Adjusted ROA consistently exceeded the Reported ROA throughout the period, suggesting that the adjustments made positively impacted the overall profitability assessment.