Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Amazon.com Inc., solvency ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 0.54 0.66 0.83 0.97 1.41
Debt to equity (including operating lease liability) 0.96 1.08 1.25 0.97 1.41
Debt to capital 0.35 0.40 0.45 0.49 0.59
Debt to capital (including operating lease liability) 0.49 0.52 0.56 0.49 0.59
Debt to assets 0.18 0.19 0.23 0.26 0.30
Debt to assets (including operating lease liability) 0.31 0.31 0.34 0.26 0.30
Financial leverage 3.04 3.44 3.63 3.73 4.74
Coverage Ratios
Interest coverage 22.09 15.69 9.73 8.95 5.48
Fixed charge coverage 5.24 4.63 3.65 3.34 2.25

Based on: 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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Amazon.com Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Amazon.com Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Amazon.com Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Amazon.com Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Amazon.com Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Amazon.com Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Amazon.com Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Amazon.com Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Amazon.com Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity

Amazon.com Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of lease liabilities, finance leases 8,083  10,374  9,884  7,720  5,839 
Current portion of long-term debt 1,491  1,155  1,305  1,371  100 
Long-term lease liabilities, finance leases, excluding current portion 15,670  18,060  17,095  9,650  8,438 
Long-term debt, excluding current portion 48,744  31,816  23,414  23,495  24,743 
Total debt 73,988  61,405  51,698  42,236  39,120 
 
Stockholders’ equity 138,245  93,404  62,060  43,549  27,709 
Solvency Ratio
Debt to equity1 0.54 0.66 0.83 0.97 1.41
Benchmarks
Debt to Equity, Competitors2
Bed Bath & Beyond Inc. 0.93 0.90 0.58 0.52 0.55
Booking Holdings Inc. 1.77 2.46 1.45 0.98 0.85
Dollar Tree Inc. 0.44 0.60 0.76 0.79 1.17
Home Depot Inc. 11.29 18.59 5.45
Lowe’s Cos. Inc. 15.16 9.79 4.45 2.89 2.44
Target Corp. 0.88 0.97 1.00 0.99 1.16
Ulta Beauty Inc. 0.00 0.00 0.00 0.00 0.00
Debt to Equity, Sector
Retailing 0.92 1.19 1.35 1.37 1.54
Debt to Equity, Industry
Consumer Discretionary 1.55 2.24 2.36 2.29 2.26

Based on: 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).

1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 73,988 ÷ 138,245 = 0.54

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Amazon.com Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

Amazon.com Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of lease liabilities, finance leases 8,083  10,374  9,884  7,720  5,839 
Current portion of long-term debt 1,491  1,155  1,305  1,371  100 
Long-term lease liabilities, finance leases, excluding current portion 15,670  18,060  17,095  9,650  8,438 
Long-term debt, excluding current portion 48,744  31,816  23,414  23,495  24,743 
Total debt 73,988  61,405  51,698  42,236  39,120 
Current portion of lease liabilities, operating leases 6,349  4,586  3,139  —  — 
Long-term lease liabilities, operating leases, excluding current portion 51,981  34,513  22,696  —  — 
Total debt (including operating lease liability) 132,318  100,504  77,533  42,236  39,120 
 
Stockholders’ equity 138,245  93,404  62,060  43,549  27,709 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.96 1.08 1.25 0.97 1.41
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Bed Bath & Beyond Inc. 2.40 2.20 0.58 0.52 0.55
Booking Holdings Inc. 1.85 2.56 1.56 0.98 0.85
Dollar Tree Inc. 1.32 1.60 0.76 0.79 1.17
Home Depot Inc. 13.16 18.59 5.45
Lowe’s Cos. Inc. 18.24 12.04 4.45 2.89 2.44
Target Corp. 1.05 1.18 1.19 0.99 1.16
Ulta Beauty Inc. 0.95 1.02 0.00 0.00 0.00
Debt to Equity (including Operating Lease Liability), Sector
Retailing 1.40 1.72 1.66 1.37 1.54
Debt to Equity (including Operating Lease Liability), Industry
Consumer Discretionary 1.90 2.65 2.60 2.29 2.26

Based on: 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).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 132,318 ÷ 138,245 = 0.96

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Amazon.com Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

Amazon.com Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of lease liabilities, finance leases 8,083  10,374  9,884  7,720  5,839 
Current portion of long-term debt 1,491  1,155  1,305  1,371  100 
Long-term lease liabilities, finance leases, excluding current portion 15,670  18,060  17,095  9,650  8,438 
Long-term debt, excluding current portion 48,744  31,816  23,414  23,495  24,743 
Total debt 73,988  61,405  51,698  42,236  39,120 
Stockholders’ equity 138,245  93,404  62,060  43,549  27,709 
Total capital 212,233  154,809  113,758  85,785  66,829 
Solvency Ratio
Debt to capital1 0.35 0.40 0.45 0.49 0.59
Benchmarks
Debt to Capital, Competitors2
Bed Bath & Beyond Inc. 0.48 0.47 0.37 0.34 0.36
Booking Holdings Inc. 0.64 0.71 0.59 0.50 0.46
Dollar Tree Inc. 0.31 0.38 0.43 0.44 0.54
Home Depot Inc. 0.92 1.11 1.07 0.95 0.84
Lowe’s Cos. Inc. 0.94 0.91 0.82 0.74 0.71
Target Corp. 0.47 0.49 0.50 0.50 0.54
Ulta Beauty Inc. 0.00 0.00 0.00 0.00 0.00
Debt to Capital, Sector
Retailing 0.48 0.54 0.57 0.58 0.61
Debt to Capital, Industry
Consumer Discretionary 0.61 0.69 0.70 0.70 0.69

Based on: 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).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 73,988 ÷ 212,233 = 0.35

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Amazon.com Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

Amazon.com Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of lease liabilities, finance leases 8,083  10,374  9,884  7,720  5,839 
Current portion of long-term debt 1,491  1,155  1,305  1,371  100 
Long-term lease liabilities, finance leases, excluding current portion 15,670  18,060  17,095  9,650  8,438 
Long-term debt, excluding current portion 48,744  31,816  23,414  23,495  24,743 
Total debt 73,988  61,405  51,698  42,236  39,120 
Current portion of lease liabilities, operating leases 6,349  4,586  3,139  —  — 
Long-term lease liabilities, operating leases, excluding current portion 51,981  34,513  22,696  —  — 
Total debt (including operating lease liability) 132,318  100,504  77,533  42,236  39,120 
Stockholders’ equity 138,245  93,404  62,060  43,549  27,709 
Total capital (including operating lease liability) 270,563  193,908  139,593  85,785  66,829 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.49 0.52 0.56 0.49 0.59
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Bed Bath & Beyond Inc. 0.71 0.69 0.37 0.34 0.36
Booking Holdings Inc. 0.65 0.72 0.61 0.50 0.46
Dollar Tree Inc. 0.57 0.62 0.43 0.44 0.54
Home Depot Inc. 0.93 1.09 1.07 0.95 0.84
Lowe’s Cos. Inc. 0.95 0.92 0.82 0.74 0.71
Target Corp. 0.51 0.54 0.54 0.50 0.54
Ulta Beauty Inc. 0.49 0.50 0.00 0.00 0.00
Debt to Capital (including Operating Lease Liability), Sector
Retailing 0.58 0.63 0.62 0.58 0.61
Debt to Capital (including Operating Lease Liability), Industry
Consumer Discretionary 0.66 0.73 0.72 0.70 0.69

Based on: 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).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 132,318 ÷ 270,563 = 0.49

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Amazon.com Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

Amazon.com Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of lease liabilities, finance leases 8,083  10,374  9,884  7,720  5,839 
Current portion of long-term debt 1,491  1,155  1,305  1,371  100 
Long-term lease liabilities, finance leases, excluding current portion 15,670  18,060  17,095  9,650  8,438 
Long-term debt, excluding current portion 48,744  31,816  23,414  23,495  24,743 
Total debt 73,988  61,405  51,698  42,236  39,120 
 
Total assets 420,549  321,195  225,248  162,648  131,310 
Solvency Ratio
Debt to assets1 0.18 0.19 0.23 0.26 0.30
Benchmarks
Debt to Assets, Competitors2
Bed Bath & Beyond Inc. 0.18 0.20 0.23 0.21 0.22
Booking Holdings Inc. 0.46 0.55 0.40 0.38 0.37
Dollar Tree Inc. 0.16 0.19 0.32 0.35 0.40
Home Depot Inc. 0.53 0.61 0.66 0.61 0.55
Lowe’s Cos. Inc. 0.47 0.49 0.47 0.48 0.46
Target Corp. 0.25 0.27 0.27 0.30 0.34
Ulta Beauty Inc. 0.00 0.00 0.00 0.00 0.00
Debt to Assets, Sector
Retailing 0.25 0.28 0.32 0.34 0.37
Debt to Assets, Industry
Consumer Discretionary 0.37 0.42 0.44 0.45 0.46

Based on: 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).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 73,988 ÷ 420,549 = 0.18

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Amazon.com Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

Amazon.com Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of lease liabilities, finance leases 8,083  10,374  9,884  7,720  5,839 
Current portion of long-term debt 1,491  1,155  1,305  1,371  100 
Long-term lease liabilities, finance leases, excluding current portion 15,670  18,060  17,095  9,650  8,438 
Long-term debt, excluding current portion 48,744  31,816  23,414  23,495  24,743 
Total debt 73,988  61,405  51,698  42,236  39,120 
Current portion of lease liabilities, operating leases 6,349  4,586  3,139  —  — 
Long-term lease liabilities, operating leases, excluding current portion 51,981  34,513  22,696  —  — 
Total debt (including operating lease liability) 132,318  100,504  77,533  42,236  39,120 
 
Total assets 420,549  321,195  225,248  162,648  131,310 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.31 0.31 0.34 0.26 0.30
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Bed Bath & Beyond Inc. 0.47 0.50 0.23 0.21 0.22
Booking Holdings Inc. 0.48 0.57 0.43 0.38 0.37
Dollar Tree Inc. 0.47 0.51 0.32 0.35 0.40
Home Depot Inc. 0.62 0.73 0.66 0.61 0.55
Lowe’s Cos. Inc. 0.56 0.60 0.47 0.48 0.46
Target Corp. 0.29 0.33 0.33 0.30 0.34
Ulta Beauty Inc. 0.37 0.40 0.00 0.00 0.00
Debt to Assets (including Operating Lease Liability), Sector
Retailing 0.38 0.40 0.39 0.34 0.37
Debt to Assets (including Operating Lease Liability), Industry
Consumer Discretionary 0.45 0.49 0.48 0.45 0.46

Based on: 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).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 132,318 ÷ 420,549 = 0.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Amazon.com Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Financial Leverage

Amazon.com Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Total assets 420,549  321,195  225,248  162,648  131,310 
Stockholders’ equity 138,245  93,404  62,060  43,549  27,709 
Solvency Ratio
Financial leverage1 3.04 3.44 3.63 3.73 4.74
Benchmarks
Financial Leverage, Competitors2
Bed Bath & Beyond Inc. 5.06 4.41 2.57 2.44 2.52
Booking Holdings Inc. 3.83 4.47 3.61 2.58 2.26
Dollar Tree Inc. 2.84 3.13 2.39 2.27 2.91
Home Depot Inc. 21.39 30.63 9.92
Lowe’s Cos. Inc. 32.52 20.02 9.47 6.01 5.35
Target Corp. 3.55 3.62 3.65 3.33 3.42
Ulta Beauty Inc. 2.55 2.56 1.75 1.64 1.65
Financial Leverage, Sector
Retailing 3.70 4.28 4.28 3.97 4.22
Financial Leverage, Industry
Consumer Discretionary 4.23 5.35 5.43 5.03 4.95

Based on: 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).

1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 420,549 ÷ 138,245 = 3.04

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Amazon.com Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Interest Coverage

Amazon.com Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 33,364  21,331  11,588  10,073  3,033 
Add: Income tax expense 4,791  2,863  2,374  1,197  769 
Add: Interest expense 1,809  1,647  1,600  1,417  848 
Earnings before interest and tax (EBIT) 39,964  25,841  15,562  12,687  4,650 
Solvency Ratio
Interest coverage1 22.09 15.69 9.73 8.95 5.48
Benchmarks
Interest Coverage, Competitors2
Bed Bath & Beyond Inc. -3.38 -10.81 -1.25 11.59 16.32
Booking Holdings Inc. 5.39 2.59 23.40 18.97 18.32
Dollar Tree Inc. 12.81 7.78 -2.54 6.65 4.54
Home Depot Inc. 13.60 13.25 14.85 13.96 13.85
Lowe’s Cos. Inc. 9.88 8.83 6.21 9.46 8.92
Target Corp. 6.68 9.78 8.97 6.47 4.95
Ulta Beauty Inc.
Interest Coverage, Sector
Retailing 13.86 11.92 10.16 10.52 8.87
Interest Coverage, Industry
Consumer Discretionary 10.80 6.42 8.71 9.90 10.29

Based on: 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).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 39,964 ÷ 1,809 = 22.09

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Amazon.com Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Fixed Charge Coverage

Amazon.com Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 33,364  21,331  11,588  10,073  3,033 
Add: Income tax expense 4,791  2,863  2,374  1,197  769 
Add: Interest expense 1,809  1,647  1,600  1,417  848 
Earnings before interest and tax (EBIT) 39,964  25,841  15,562  12,687  4,650 
Add: Operating lease cost 7,199  5,019  3,669  3,400  2,200 
Earnings before fixed charges and tax 47,163  30,860  19,231  16,087  6,850 
 
Interest expense 1,809  1,647  1,600  1,417  848 
Operating lease cost 7,199  5,019  3,669  3,400  2,200 
Fixed charges 9,008  6,666  5,269  4,817  3,048 
Solvency Ratio
Fixed charge coverage1 5.24 4.63 3.65 3.34 2.25
Benchmarks
Fixed Charge Coverage, Competitors2
Bed Bath & Beyond Inc. 0.49 -0.18 0.76 2.02 2.64
Booking Holdings Inc. 3.82 2.03 14.27 12.57 12.77
Dollar Tree Inc. 2.02 1.65 0.26 2.04 1.80
Home Depot Inc. 8.97 8.26 7.80 7.49 7.39
Lowe’s Cos. Inc. 6.05 5.04 3.68 5.31 5.31
Target Corp. 5.24 6.48 6.16 5.10 4.29
Ulta Beauty Inc. 1.76 4.14 4.28 4.26 4.23
Fixed Charge Coverage, Sector
Retailing 5.17 4.60 4.26 4.49 4.20
Fixed Charge Coverage, Industry
Consumer Discretionary 5.08 3.29 4.04 4.57 4.88

Based on: 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).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 47,163 ÷ 9,008 = 5.24

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Amazon.com Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.