Common-Size Income Statement
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
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Amazon.com Inc., common-size consolidated income statement
Based on: 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), 10-K (reporting date: 2020-12-31).
- Sales Composition
- There is a clear shift in the composition of net sales over the observed period. Net product sales have steadily declined from 55.93% to 42.68% of total net sales, indicating a decreasing reliance on product sales. Conversely, net service sales have shown a consistent increase, rising from 44.07% to 57.32%, reflecting a strategic emphasis or growth in service-related revenue streams.
- Cost and Profitability Trends
- Cost of sales as a percentage of net sales has decreased from -60.43% to -51.15%, suggesting improved cost efficiency or changes in product and service mix favoring higher-margin offerings. Correspondingly, gross profit margins have improved significantly, rising from 39.57% to 48.85%, indicating enhanced profitability at the gross level.
- Operating Expenses
- Fulfillment expenses have remained relatively stable, fluctuating slightly but maintaining a range close to -15% of net sales. Technology and infrastructure costs initially increased to a peak of -14.9% before declining to -13.88%, which could signify investment optimization or scaling improvements. Sales and marketing expenses rose until 2022 (-8.22%), then declined to -6.88%, reflecting possible cost control or shifts in marketing strategy. General and administrative expenses have modestly increased but exhibit a slight decline in the most recent year, suggesting tighter expense management.
- Operating Income
- Operating income as a percentage of net sales has experienced volatility but an overall positive trend, dropping to a low of 2.38% in 2022, then recovering strongly to 10.75% by 2024. This rebound highlights operational improvements and effective cost management despite earlier challenges.
- Interest and Other Income/Expense
- Interest income has steadily increased, indicating better returns on investments or cash balances. Interest expense fluctuated but generally remained below 0.6% of net sales, suggesting manageable financing costs. Marketable equity securities valuation gains and equity warrant valuations show volatility, with gains early on and losses later, reflecting exposure to market fluctuations. Other operating income/expense and other income/expense net values have been minor but demonstrate some variability impacting net results.
- Income before Taxes and Net Income
- Income before income taxes has mirrored operating income trends, showing a dip into negative territory in 2022 (-1.15%) but followed by a robust recovery to 10.76% in 2024. The provision for income taxes generally aligns with profitability trends but includes some benefit in 2022, likely due to the loss in that year. Net income follows the same pattern, with a slight loss recorded in 2022 (-0.53%) amid a rebound to a solid 9.29% by 2024, highlighting overall profitability resilience and growth.