Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Amazon.com Inc. (NASDAQ:AMZN)

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

Beginner level

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 (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Jun 30, 2020 17.88% = 5.10% × 3.50
Mar 31, 2020 16.18% = 4.77% × 3.39
Dec 31, 2019 18.67% = 5.14% × 3.63
Sep 30, 2019 20.08% = 5.70% × 3.52
Jun 30, 2019 22.80% = 6.32% × 3.61
Mar 31, 2019 24.80% = 6.74% × 3.68
Dec 31, 2018 23.13% = 6.19% × 3.73
Sep 30, 2018 22.75% = 6.20% × 3.67
Jun 30, 2018 17.93% = 4.68% × 3.83
Mar 31, 2018 12.52% = 3.12% × 4.02
Dec 31, 2017 10.95% = 2.31% × 4.74
Sep 30, 2017 7.81% = 1.67% × 4.67
Jun 30, 2017 8.28% = 2.19% × 3.78
Mar 31, 2017 11.91% = 3.19% × 3.74
Dec 31, 2016 12.29% = 2.84% × 4.32
Sep 30, 2016 11.83% = 2.97% × 3.99
Jun 30, 2016 11.68% = 2.97% × 3.93
Mar 31, 2016 7.90% = 1.91% × 4.14
Dec 31, 2015 4.45% = 0.91% × 4.89
Sep 30, 2015 — = — × 4.52
Jun 30, 2015 — = — × 4.46
Mar 31, 2015 — = — × 4.61

Based on: 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-01-31), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2020 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 30, 2020 17.88% = 4.10% × 1.25 × 3.50
Mar 31, 2020 16.18% = 3.56% × 1.34 × 3.39
Dec 31, 2019 18.67% = 4.13% × 1.25 × 3.63
Sep 30, 2019 20.08% = 4.27% × 1.33 × 3.52
Jun 30, 2019 22.80% = 4.80% × 1.32 × 3.61
Mar 31, 2019 24.80% = 4.97% × 1.36 × 3.68
Dec 31, 2018 23.13% = 4.33% × 1.43 × 3.73
Sep 30, 2018 22.75% = 4.03% × 1.54 × 3.67
Jun 30, 2018 17.93% = 3.02% × 1.55 × 3.83
Mar 31, 2018 12.52% = 2.04% × 1.53 × 4.02
Dec 31, 2017 10.95% = 1.71% × 1.35 × 4.74
Sep 30, 2017 7.81% = 1.20% × 1.40 × 4.67
Jun 30, 2017 8.28% = 1.28% × 1.71 × 3.78
Mar 31, 2017 11.91% = 1.81% × 1.76 × 3.74
Dec 31, 2016 12.29% = 1.74% × 1.63 × 4.32
Sep 30, 2016 11.83% = 1.64% × 1.81 × 3.99
Jun 30, 2016 11.68% = 1.60% × 1.85 × 3.93
Mar 31, 2016 7.90% = 1.03% × 1.86 × 4.14
Dec 31, 2015 4.45% = 0.56% × 1.64 × 4.89
Sep 30, 2015 — = — × — × 4.52
Jun 30, 2015 — = — × — × 4.46
Mar 31, 2015 — = — × — × 4.61

Based on: 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-01-31), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2020 is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Amazon.com Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jun 30, 2020 17.88% = 0.81 × 0.91 × 5.55% × 1.25 × 3.50
Mar 31, 2020 16.18% = 0.82 × 0.89 × 4.89% × 1.34 × 3.39
Dec 31, 2019 18.67% = 0.83 × 0.90 × 5.55% × 1.25 × 3.63
Sep 30, 2019 20.08% = 0.86 × 0.90 × 5.57% × 1.33 × 3.52
Jun 30, 2019 22.80% = 0.86 × 0.90 × 6.16% × 1.32 × 3.61
Mar 31, 2019 24.80% = 0.87 × 0.90 × 6.29% × 1.36 × 3.68
Dec 31, 2018 23.13% = 0.89 × 0.89 × 5.45% × 1.43 × 3.73
Sep 30, 2018 22.75% = 0.91 × 0.88 × 5.05% × 1.54 × 3.67
Jun 30, 2018 17.93% = 0.94 × 0.84 × 3.82% × 1.55 × 3.83
Mar 31, 2018 12.52% = 0.83 × 0.82 × 3.00% × 1.53 × 4.02
Dec 31, 2017 10.95% = 0.80 × 0.82 × 2.61% × 1.35 × 4.74
Sep 30, 2017 7.81% = 0.62 × 0.83 × 2.32% × 1.40 × 4.67
Jun 30, 2017 8.28% = 0.59 × 0.86 × 2.53% × 1.71 × 3.78
Mar 31, 2017 11.91% = 0.69 × 0.88 × 2.99% × 1.76 × 3.74
Dec 31, 2016 12.29% = 0.62 × 0.89 × 3.15% × 1.63 × 4.32
Sep 30, 2016 11.83% = 0.59 × 0.88 × 3.15% × 1.81 × 3.99
Jun 30, 2016 11.68% = 0.58 × 0.88 × 3.14% × 1.85 × 3.93
Mar 31, 2016 7.90% = 0.46 × 0.85 × 2.63% × 1.86 × 4.14
Dec 31, 2015 4.45% = 0.39 × 0.77 × 1.87% × 1.64 × 4.89
Sep 30, 2015 — = — × — × — × — × 4.52
Jun 30, 2015 — = — × — × — × — × 4.46
Mar 31, 2015 — = — × — × — × — × 4.61

Based on: 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-01-31), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2020 is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Amazon.com Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2020 5.10% = 4.10% × 1.25
Mar 31, 2020 4.77% = 3.56% × 1.34
Dec 31, 2019 5.14% = 4.13% × 1.25
Sep 30, 2019 5.70% = 4.27% × 1.33
Jun 30, 2019 6.32% = 4.80% × 1.32
Mar 31, 2019 6.74% = 4.97% × 1.36
Dec 31, 2018 6.19% = 4.33% × 1.43
Sep 30, 2018 6.20% = 4.03% × 1.54
Jun 30, 2018 4.68% = 3.02% × 1.55
Mar 31, 2018 3.12% = 2.04% × 1.53
Dec 31, 2017 2.31% = 1.71% × 1.35
Sep 30, 2017 1.67% = 1.20% × 1.40
Jun 30, 2017 2.19% = 1.28% × 1.71
Mar 31, 2017 3.19% = 1.81% × 1.76
Dec 31, 2016 2.84% = 1.74% × 1.63
Sep 30, 2016 2.97% = 1.64% × 1.81
Jun 30, 2016 2.97% = 1.60% × 1.85
Mar 31, 2016 1.91% = 1.03% × 1.86
Dec 31, 2015 0.91% = 0.56% × 1.64
Sep 30, 2015 — = — × —
Jun 30, 2015 — = — × —
Mar 31, 2015 — = — × —

Based on: 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-01-31), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2020 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Amazon.com Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 30, 2020 5.10% = 0.81 × 0.91 × 5.55% × 1.25
Mar 31, 2020 4.77% = 0.82 × 0.89 × 4.89% × 1.34
Dec 31, 2019 5.14% = 0.83 × 0.90 × 5.55% × 1.25
Sep 30, 2019 5.70% = 0.86 × 0.90 × 5.57% × 1.33
Jun 30, 2019 6.32% = 0.86 × 0.90 × 6.16% × 1.32
Mar 31, 2019 6.74% = 0.87 × 0.90 × 6.29% × 1.36
Dec 31, 2018 6.19% = 0.89 × 0.89 × 5.45% × 1.43
Sep 30, 2018 6.20% = 0.91 × 0.88 × 5.05% × 1.54
Jun 30, 2018 4.68% = 0.94 × 0.84 × 3.82% × 1.55
Mar 31, 2018 3.12% = 0.83 × 0.82 × 3.00% × 1.53
Dec 31, 2017 2.31% = 0.80 × 0.82 × 2.61% × 1.35
Sep 30, 2017 1.67% = 0.62 × 0.83 × 2.32% × 1.40
Jun 30, 2017 2.19% = 0.59 × 0.86 × 2.53% × 1.71
Mar 31, 2017 3.19% = 0.69 × 0.88 × 2.99% × 1.76
Dec 31, 2016 2.84% = 0.62 × 0.89 × 3.15% × 1.63
Sep 30, 2016 2.97% = 0.59 × 0.88 × 3.15% × 1.81
Jun 30, 2016 2.97% = 0.58 × 0.88 × 3.14% × 1.85
Mar 31, 2016 1.91% = 0.46 × 0.85 × 2.63% × 1.86
Dec 31, 2015 0.91% = 0.39 × 0.77 × 1.87% × 1.64
Sep 30, 2015 — = — × — × — × —
Jun 30, 2015 — = — × — × — × —
Mar 31, 2015 — = — × — × — × —

Based on: 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-01-31), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2020 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Amazon.com Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 30, 2020 4.10% = 0.81 × 0.91 × 5.55%
Mar 31, 2020 3.56% = 0.82 × 0.89 × 4.89%
Dec 31, 2019 4.13% = 0.83 × 0.90 × 5.55%
Sep 30, 2019 4.27% = 0.86 × 0.90 × 5.57%
Jun 30, 2019 4.80% = 0.86 × 0.90 × 6.16%
Mar 31, 2019 4.97% = 0.87 × 0.90 × 6.29%
Dec 31, 2018 4.33% = 0.89 × 0.89 × 5.45%
Sep 30, 2018 4.03% = 0.91 × 0.88 × 5.05%
Jun 30, 2018 3.02% = 0.94 × 0.84 × 3.82%
Mar 31, 2018 2.04% = 0.83 × 0.82 × 3.00%
Dec 31, 2017 1.71% = 0.80 × 0.82 × 2.61%
Sep 30, 2017 1.20% = 0.62 × 0.83 × 2.32%
Jun 30, 2017 1.28% = 0.59 × 0.86 × 2.53%
Mar 31, 2017 1.81% = 0.69 × 0.88 × 2.99%
Dec 31, 2016 1.74% = 0.62 × 0.89 × 3.15%
Sep 30, 2016 1.64% = 0.59 × 0.88 × 3.15%
Jun 30, 2016 1.60% = 0.58 × 0.88 × 3.14%
Mar 31, 2016 1.03% = 0.46 × 0.85 × 2.63%
Dec 31, 2015 0.56% = 0.39 × 0.77 × 1.87%
Sep 30, 2015 — = — × — × —
Jun 30, 2015 — = — × — × —
Mar 31, 2015 — = — × — × —

Based on: 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-01-31), 10-Q (filing date: 2019-10-25), 10-Q (filing date: 2019-07-26), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-01), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-02), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-01-29), 10-Q (filing date: 2015-10-23), 10-Q (filing date: 2015-07-24), 10-Q (filing date: 2015-04-24).

The primary reason for the increase in net profit margin ratio over Q2 2020 is the increase in operating profitability measured by EBIT margin ratio.