Operating Profit Margin
since 2005
Calculation
Amazon.com Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 10.75% | = | 100 | × | 68,593) | ÷ | 637,959) |
| Dec 31, 2023 | 6.41% | = | 100 | × | 36,852) | ÷ | 574,785) |
| Dec 31, 2022 | 2.38% | = | 100 | × | 12,248) | ÷ | 513,983) |
| Dec 31, 2021 | 5.30% | = | 100 | × | 24,879) | ÷ | 469,822) |
| Dec 31, 2020 | 5.93% | = | 100 | × | 22,899) | ÷ | 386,064) |
| Dec 31, 2019 | 5.18% | = | 100 | × | 14,541) | ÷ | 280,522) |
| Dec 31, 2018 | 5.33% | = | 100 | × | 12,421) | ÷ | 232,887) |
| Dec 31, 2017 | 2.31% | = | 100 | × | 4,106) | ÷ | 177,866) |
| Dec 31, 2016 | 3.08% | = | 100 | × | 4,186) | ÷ | 135,987) |
| Dec 31, 2015 | 2.09% | = | 100 | × | 2,233) | ÷ | 107,006) |
| Dec 31, 2014 | 0.20% | = | 100 | × | 178) | ÷ | 88,988) |
| Dec 31, 2013 | 1.00% | = | 100 | × | 745) | ÷ | 74,452) |
| Dec 31, 2012 | 1.11% | = | 100 | × | 676) | ÷ | 61,093) |
| Dec 31, 2011 | 1.79% | = | 100 | × | 862) | ÷ | 48,077) |
| Dec 31, 2010 | 4.11% | = | 100 | × | 1,406) | ÷ | 34,204) |
| Dec 31, 2009 | 4.61% | = | 100 | × | 1,129) | ÷ | 24,509) |
| Dec 31, 2008 | 4.39% | = | 100 | × | 842) | ÷ | 19,166) |
| Dec 31, 2007 | 4.42% | = | 100 | × | 655) | ÷ | 14,835) |
| Dec 31, 2006 | 3.63% | = | 100 | × | 389) | ÷ | 10,711) |
| Dec 31, 2005 | 5.09% | = | 100 | × | 432) | ÷ | 8,490) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial data reflects significant developments over the years in key performance metrics including operating income, net sales, and operating profit margin.
- Net Sales
- Net sales have exhibited consistent and strong growth from 2005 through 2024. Starting from $8.49 billion in 2005, net sales rose sharply and continuously, reaching $637.96 billion by 2024. This upward trajectory highlights sustained expansion and increasing market penetration over the two decades under review.
- Operating Income
- Operating income shows a more variable pattern compared to net sales. Although it generally trended upwards from $432 million in 2005 to significant peaks in later years, certain years exhibited fluctuations. Notably, operating income diminished in some periods (e.g., a decline from $1,406 million in 2010 to $862 million in 2011 and further to $676 million in 2012), before rebounding strongly in subsequent years. The figure surged markedly after 2014, reaching an exceptionally high $68.59 billion by 2024, evidencing enhanced operational efficiency and profitability gains over time.
- Operating Profit Margin
- The operating profit margin percentage, representing operating income as a proportion of net sales, displays considerable variability throughout the timeframe. Initially, the margin ranged between approximately 3.63% and 5.09% from 2005 to 2010. A notable dip occurred in the early 2010s, with margin values as low as 0.2% in 2014, possibly due to increased operational costs or investments. However, from 2015 onwards, the margin consistently improved, reaching a peak of 10.75% in 2024. This trend indicates progressive enhancement in cost management and operational leverage relative to sales growth.
- Summary of Trends
- Overall, the data reveals an expanding revenue base with net sales growing exponentially. Operating income experienced short-term declines but demonstrated a robust long-term upward trend with remarkable improvements post-2014. The oscillations in operating profit margin reveal periods of investment or cost pressure followed by improved profitability ratios, indicating a maturing business able to convert higher sales volumes into increased operating profitability efficiently. The most recent years illustrate strong financial performance marked by both high sales volumes and improved margins, suggesting enhanced strategic execution and market positioning.
Comparison to Competitors
Amazon.com Inc., operating profit margin, long-term trends, comparison to competitors
| Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | |
|---|---|---|---|
| Dec 31, 2024 | 10.75% | 14.21% | 13.38% |
| Dec 31, 2023 | 6.41% | 15.27% | 10.47% |
| Dec 31, 2022 | 2.38% | 15.24% | 12.56% |
| Dec 31, 2021 | 5.30% | 13.84% | 10.77% |
| Dec 31, 2020 | 5.93% | 14.37% | 8.75% |
| Dec 31, 2019 | 5.18% | 14.35% | 5.63% |
| Dec 31, 2018 | 5.33% | 14.55% | 9.60% |
| Dec 31, 2017 | 2.31% | 14.19% | 8.99% |
| Dec 31, 2016 | 3.08% | 13.30% | 8.41% |
| Dec 31, 2015 | 2.09% | 12.59% | 8.52% |
| Dec 31, 2014 | 0.20% | 11.63% | 0.00% |
| Dec 31, 2013 | 1.00% | 10.39% | 0.00% |
| Dec 31, 2012 | 1.11% | 9.46% | 0.00% |
| Dec 31, 2011 | 1.79% | 8.59% | 0.00% |
| Dec 31, 2010 | 4.11% | 7.26% | 0.00% |
| Dec 31, 2009 | 4.61% | 6.11% | 0.00% |
| Dec 31, 2008 | 4.39% | 9.36% | 0.00% |
| Dec 31, 2007 | 4.42% | 10.65% | 0.00% |
| Dec 31, 2006 | 3.63% | 11.49% | 0.00% |
| Dec 31, 2005 | 5.09% | 10.84% | 0.00% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).