Stock Analysis on Net
Stock Analysis on Net
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Amazon.com Inc. (NASDAQ:AMZN)

Adjusted Financial Ratios

Advanced level


Adjusted Financial Ratios (Summary)

Amazon.com Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 1.25 1.43 1.35 1.63 1.64
Adjusted 1.25 1.26 1.18 1.51 1.52
Liquidity Ratio
Current Ratio
Reported 1.10 1.10 1.04 1.04 1.08
Adjusted 1.22 1.22 1.15 1.18 1.19
Solvency Ratios
Debt to Equity
Reported 0.83 0.97 1.41 0.92 1.17
Adjusted 1.04 1.25 1.71 1.08 1.30
Debt to Capital
Reported 0.45 0.49 0.59 0.48 0.54
Adjusted 0.51 0.56 0.63 0.52 0.56
Financial Leverage
Reported 3.63 3.73 4.74 4.32 4.89
Adjusted 3.04 3.56 4.41 3.76 4.30
Profitability Ratios
Net Profit Margin
Reported 4.13% 4.33% 1.71% 1.74% 0.56%
Adjusted 5.27% 5.09% 2.49% 2.77% 1.62%
Return on Equity (ROE)
Reported 18.67% 23.13% 10.95% 12.29% 4.45%
Adjusted 20.07% 22.76% 12.94% 15.68% 10.59%
Return on Assets (ROA)
Reported 5.14% 6.19% 2.31% 2.84% 0.91%
Adjusted 6.60% 6.40% 2.94% 4.17% 2.46%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Amazon.com Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Amazon.com Inc.’s adjusted current ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Amazon.com Inc.’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Amazon.com Inc.’s adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Amazon.com Inc.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Amazon.com Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Amazon.com Inc.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Amazon.com Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Amazon.com Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net sales 280,522  232,887  177,866  135,987  107,006 
Total assets 225,248  162,648  131,310  83,402  65,444 
Activity Ratio
Total asset turnover1 1.25 1.43 1.35 1.63 1.64
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net sales2 282,776  234,726  178,696  137,892  108,301 
Adjusted total assets3 225,966  186,805  151,370  91,563  71,382 
Activity Ratio
Adjusted total asset turnover4 1.25 1.26 1.18 1.51 1.52

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

1 2019 Calculation
Total asset turnover = Net sales ÷ Total assets
= 280,522 ÷ 225,248 = 1.25

2 Adjusted net sales. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 282,776 ÷ 225,966 = 1.25

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Amazon.com Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 96,334  75,101  60,197  45,781  36,474 
Current liabilities 87,812  68,391  57,883  43,816  33,899 
Liquidity Ratio
Current ratio1 1.10 1.10 1.04 1.04 1.08
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 97,052  75,596  60,545  46,018  36,663 
Adjusted current liabilities3 79,622  61,855  52,786  39,048  30,781 
Liquidity Ratio
Adjusted current ratio4 1.22 1.22 1.15 1.18 1.19

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 96,334 ÷ 87,812 = 1.10

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 97,052 ÷ 79,622 = 1.22

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Amazon.com Inc.’s adjusted current ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Debt to Equity

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 51,700  42,236  39,120  17,827  15,712 
Stockholders’ equity 62,060  43,549  27,709  19,285  13,384 
Solvency Ratio
Debt to equity1 0.83 0.97 1.41 0.92 1.17
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 77,535  65,898  58,832  26,205  21,543 
Adjusted stockholders’ equity3 74,289  52,524  34,351  24,335  16,609 
Solvency Ratio
Adjusted debt to equity4 1.04 1.25 1.71 1.08 1.30

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 51,700 ÷ 62,060 = 0.83

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 77,535 ÷ 74,289 = 1.04

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Amazon.com Inc.’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 51,700  42,236  39,120  17,827  15,712 
Total capital 113,760  85,785  66,829  37,112  29,096 
Solvency Ratio
Debt to capital1 0.45 0.49 0.59 0.48 0.54
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 77,535  65,898  58,832  26,205  21,543 
Adjusted total capital3 151,824  118,422  93,183  50,540  38,152 
Solvency Ratio
Adjusted debt to capital4 0.51 0.56 0.63 0.52 0.56

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 51,700 ÷ 113,760 = 0.45

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 77,535 ÷ 151,824 = 0.51

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Amazon.com Inc.’s adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 225,248  162,648  131,310  83,402  65,444 
Stockholders’ equity 62,060  43,549  27,709  19,285  13,384 
Solvency Ratio
Financial leverage1 3.63 3.73 4.74 4.32 4.89
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 225,966  186,805  151,370  91,563  71,382 
Adjusted stockholders’ equity3 74,289  52,524  34,351  24,335  16,609 
Solvency Ratio
Adjusted financial leverage4 3.04 3.56 4.41 3.76 4.30

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 225,248 ÷ 62,060 = 3.63

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 225,966 ÷ 74,289 = 3.04

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Amazon.com Inc.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 11,588  10,073  3,033  2,371  596 
Net sales 280,522  232,887  177,866  135,987  107,006 
Profitability Ratio
Net profit margin1 4.13% 4.33% 1.71% 1.74% 0.56%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 14,910  11,953  4,446  3,816  1,759 
Adjusted net sales3 282,776  234,726  178,696  137,892  108,301 
Profitability Ratio
Adjusted net profit margin4 5.27% 5.09% 2.49% 2.77% 1.62%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

1 2019 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 11,588 ÷ 280,522 = 4.13%

2 Adjusted net income. See details »

3 Adjusted net sales. See details »

4 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted net sales
= 100 × 14,910 ÷ 282,776 = 5.27%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Amazon.com Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 11,588  10,073  3,033  2,371  596 
Stockholders’ equity 62,060  43,549  27,709  19,285  13,384 
Profitability Ratio
ROE1 18.67% 23.13% 10.95% 12.29% 4.45%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 14,910  11,953  4,446  3,816  1,759 
Adjusted stockholders’ equity3 74,289  52,524  34,351  24,335  16,609 
Profitability Ratio
Adjusted ROE4 20.07% 22.76% 12.94% 15.68% 10.59%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

1 2019 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 11,588 ÷ 62,060 = 18.67%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 14,910 ÷ 74,289 = 20.07%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Amazon.com Inc.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 11,588  10,073  3,033  2,371  596 
Total assets 225,248  162,648  131,310  83,402  65,444 
Profitability Ratio
ROA1 5.14% 6.19% 2.31% 2.84% 0.91%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 14,910  11,953  4,446  3,816  1,759 
Adjusted total assets3 225,966  186,805  151,370  91,563  71,382 
Profitability Ratio
Adjusted ROA4 6.60% 6.40% 2.94% 4.17% 2.46%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

1 2019 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 11,588 ÷ 225,248 = 5.14%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 14,910 ÷ 225,966 = 6.60%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Amazon.com Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.