Amazon.com Inc. (NASDAQ:AMZN)

Return on Assets (ROA)

The ROA demonstrated a fluctuating trend over the analyzed periods. Starting at 6.64% in 2020, it increased to 7.93% in 2021, indicating an improvement in asset profitability. However, in 2022, the ROA turned negative to -0.59%, suggesting a period of asset inefficiency or losses. Subsequently, there was a recovery with ROA rising to 5.76% in 2023 and further increasing to 9.48% in 2024, surpassing the initial values and indicating improved utilization of assets.

Financial Leverage

The financial leverage ratio exhibited a consistent declining trend over the five years. From 3.44 in 2020, it decreased to 3.04 in 2021 and slightly increased to 3.17 in 2022. Following this, there was a notable reduction to 2.61 in 2023, continuing down to 2.19 in 2024. This pattern suggests a gradual reduction in reliance on debt financing, potentially reducing financial risk and improving capital structure stability.

Return on Equity (ROE)

ROE reflected a pattern similar to ROA, with initial growth from 22.84% in 2020 to 24.13% in 2021. In 2022, it dropped sharply to -1.86%, indicating a significant decrease in shareholder returns or net losses impacting equity value. Subsequent years showed recovery with ROE increasing to 15.07% in 2023 and further to 20.72% in 2024, although remaining below the peak observed in 2021. This recovery indicates improved profitability and effective equity management post-2022 downturn.

Net Profit Margin

The net profit margin exhibited variability over the given periods. Starting at 5.53% in 2020, it increased to a peak of 7.1% in 2021. However, there was a notable decline in 2022, with the margin turning negative at -0.53%. Subsequently, the margin recovered in the following years, reaching 5.29% in 2023, and further improving to 9.29% in 2024, indicating enhanced profitability.

Asset Turnover

Asset turnover ratio showed a gradual decline throughout the analyzed timeframe. From 1.2 in 2020, it decreased consistently each year to 1.12 in 2021, 1.11 in 2022, 1.09 in 2023, and finally 1.02 in 2024. This trend suggests a progressive reduction in the efficiency with which the company utilizes its assets to generate revenue.

Financial Leverage

Financial leverage demonstrated a downward trend across the periods. Beginning at 3.44 in 2020, the ratio decreased to 3.04 in 2021, marginally increased to 3.17 in 2022, followed by a more substantial decline to 2.61 in 2023 and then to 2.19 in 2024. This decline indicates a reduction in the extent to which the company is using debt to finance its assets.

Return on Equity (ROE)

ROE followed a pattern similar to net profit margin, with overall fluctuations evident. The return was 22.84% in 2020 and rose to 24.13% in 2021, reflecting strong shareholder returns. In 2022, ROE dropped significantly to -1.86%, signaling a loss attributable to equity holders. Recovery occurred thereafter, reaching 15.07% in 2023 and improving further to 20.72% in 2024. This recovery implies an improvement in the company’s ability to generate profit from shareholders’ equity after a challenging period.

Tax Burden

The tax burden ratio exhibits a general decline from 0.88 in 2020 to 0.81 in 2023, followed by a partial recovery to 0.86 in 2024. This suggests a reduction in the proportion of earnings paid as taxes during the earlier years, with a moderate increase in the most recent period.

Interest Burden

The interest burden ratio remains relatively stable over the examined periods, fluctuating slightly but maintaining high levels between 0.92 and 0.97. This indicates consistent management of interest expenses relative to earnings before interest and taxes.

EBIT Margin

The EBIT margin shows a notable fluctuation; it increases from 6.69% in 2020 to a peak of 8.51% in 2021, drops sharply to a negative margin of -0.69% in 2022, then recovers strongly to 7.09% in 2023 and further improves to 11.12% in 2024. This pattern highlights a significant operational challenge in 2022, followed by a robust recovery and improved profitability in the subsequent years.

Asset Turnover

Asset turnover demonstrates a gradual decline across the periods analyzed, decreasing from 1.2 in 2020 to 1.02 in 2024. This trend suggests a diminishing efficiency in utilizing assets to generate revenue over time.

Financial Leverage

Financial leverage shows a consistent downward trend, moving from 3.44 in 2020 to 2.19 in 2024. This indicates a progressive reduction in the company's reliance on debt financing relative to equity.

Return on Equity (ROE)

ROE experiences significant volatility, rising from 22.84% in 2020 to a high of 24.13% in 2021, then plummeting to -1.86% in 2022. It recovers to 15.07% in 2023 and further improves to 20.72% in 2024. This pattern mirrors the EBIT margin movement, reflecting the impact of operational performance on overall equity returns.

Net Profit Margin

The net profit margin exhibits variability over the five-year period. It increased from 5.53% in 2020 to a peak of 7.1% in 2021, followed by a significant decline to -0.53% in 2022, indicating a loss during that year. Subsequently, the margin recovered to 5.29% in 2023 and further improved to 9.29% in 2024, marking the highest value in the observed period.

Asset Turnover

Asset turnover demonstrates a gradual declining trend, decreasing from 1.2 in 2020 to 1.02 in 2024. This steady reduction suggests a diminishing efficiency in generating revenue from the company's assets over time.

Return on Assets (ROA)

ROA mirrors the trend seen in net profit margin, starting at 6.64% in 2020 and rising to 7.93% in 2021, followed by a significant drop to -0.59% in 2022. Thereafter, it recovers to 5.76% in 2023 and improves further to 9.48% in 2024, indicating enhanced profitability relative to the asset base in the final year.

The financial data over the reported years demonstrate varied performance across different operational and profitability metrics.

Tax Burden

The tax burden ratio experienced minor fluctuations, starting at 0.88 in 2020 and slightly decreasing to 0.87 in 2021. It then dipped more noticeably to 0.81 in 2023 before recovering somewhat to 0.86 by 2024. This pattern indicates a period of more favorable tax conditions around 2023 followed by a return to previous levels.

Interest Burden

This ratio remained relatively stable, generally close to the mid-0.90s, with a slight decline to 0.92 in 2023 and then an increase to 0.97 in 2024. The high values suggest consistent management of interest expenses relative to earnings before interest and taxes across the years.

EBIT Margin

Operating profitability, as measured by the EBIT margin, showed significant variability. It increased from 6.69% in 2020 to 8.51% in 2021, indicating improved operational efficiency. However, a notable decline occurred in 2022, with the margin falling into negative territory (-0.69%), signaling operational losses or extraordinary expenses during that year. The margin rebounded strongly in the subsequent years, reaching 7.09% in 2023 and peaking at 11.12% by 2024, reflecting a recovery and enhancement in operational profitability.

Asset Turnover

The asset turnover ratio exhibited a gradual downward trend, declining from 1.20 in 2020 to 1.02 in 2024. This trend suggests a decreasing efficiency in generating revenue from the company’s assets over the reported period.

Return on Assets (ROA)

ROA followed a trajectory similar to the EBIT margin, starting at 6.64% in 2020 and improving to 7.93% in 2021 before slipping into negative territory at -0.59% in 2022. Recovery ensued with a rise to 5.76% in 2023 and a substantial increase to 9.48% in 2024. These fluctuations highlight challenges encountered during 2022 and significant operational and asset utilization improvement afterwards.

In summary, while operational profitability and returns on assets were adversely impacted in 2022, the subsequent years demonstrate strong recovery and growth. The gradual decline in asset turnover suggests a potential area requiring attention to maintain or improve asset efficiency. The relatively stable interest and tax burden ratios indicate consistent financial management practices in these areas.

Tax Burden

The tax burden ratio demonstrates slight fluctuations over the observed periods. It started at 0.88 in 2020, slightly decreased to 0.87 in 2021, then declined more noticeably to 0.81 in 2023, before recovering to 0.86 in 2024. The dip in 2023 indicates a temporary reduction in the proportion of earnings retained after taxes during that year.

Interest Burden

The interest burden ratio remained relatively stable throughout the periods, with values ranging from 0.92 to 0.97. A gradual increase is observable, moving from 0.94 in 2020 to 0.97 in 2024, except for a dip to 0.92 in 2023. This suggests a generally consistent and slightly improving ability to cover interest expenses relative to EBIT over time.

EBIT Margin

The EBIT margin experienced significant volatility. It increased from 6.69% in 2020 to a peak of 8.51% in 2021, then sharply decreased to a negative margin of -0.69% in 2022, indicative of operational losses that year. The margin recovered to 7.09% in 2023 and improved further to 11.12% in 2024, signaling a strong rebound in operational profitability.

Net Profit Margin

The net profit margin followed a pattern similar to the EBIT margin. It grew from 5.53% in 2020 to 7.10% in 2021, turned negative at -0.53% in 2022, reflecting a net loss, then improved to 5.29% in 2023, and significantly increased to 9.29% in 2024. This trend indicates fluctuation in overall profitability with a marked recovery in the later years.