Stock Analysis on Net
Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 15.07% = 5.76% × 2.61
Dec 31, 2022 -1.86% = -0.59% × 3.17
Dec 31, 2021 24.13% = 7.93% × 3.04
Dec 31, 2020 22.84% = 6.64% × 3.44
Dec 31, 2019 18.67% = 5.14% × 3.63

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).

Three-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 15.07% = 5.29% × 1.09 × 2.61
Dec 31, 2022 -1.86% = -0.53% × 1.11 × 3.17
Dec 31, 2021 24.13% = 7.10% × 1.12 × 3.04
Dec 31, 2020 22.84% = 5.53% × 1.20 × 3.44
Dec 31, 2019 18.67% = 4.13% × 1.25 × 3.63

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).

Five-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 15.07% = 0.81 × 0.92 × 7.09% × 1.09 × 2.61
Dec 31, 2022 -1.86% = — × — × -0.69% × 1.11 × 3.17
Dec 31, 2021 24.13% = 0.87 × 0.95 × 8.51% × 1.12 × 3.04
Dec 31, 2020 22.84% = 0.88 × 0.94 × 6.69% × 1.20 × 3.44
Dec 31, 2019 18.67% = 0.83 × 0.90 × 5.55% × 1.25 × 3.63

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).

Two-Component Disaggregation of ROA

Amazon.com Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 5.76% = 5.29% × 1.09
Dec 31, 2022 -0.59% = -0.53% × 1.11
Dec 31, 2021 7.93% = 7.10% × 1.12
Dec 31, 2020 6.64% = 5.53% × 1.20
Dec 31, 2019 5.14% = 4.13% × 1.25

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).

Four-Component Disaggregation of ROA

Amazon.com Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 5.76% = 0.81 × 0.92 × 7.09% × 1.09
Dec 31, 2022 -0.59% = — × — × -0.69% × 1.11
Dec 31, 2021 7.93% = 0.87 × 0.95 × 8.51% × 1.12
Dec 31, 2020 6.64% = 0.88 × 0.94 × 6.69% × 1.20
Dec 31, 2019 5.14% = 0.83 × 0.90 × 5.55% × 1.25

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).

Disaggregation of Net Profit Margin

Amazon.com Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 5.29% = 0.81 × 0.92 × 7.09%
Dec 31, 2022 -0.53% = — × — × -0.69%
Dec 31, 2021 7.10% = 0.87 × 0.95 × 8.51%
Dec 31, 2020 5.53% = 0.88 × 0.94 × 6.69%
Dec 31, 2019 4.13% = 0.83 × 0.90 × 5.55%

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).