Amazon.com Inc. (NASDAQ:AMZN)

Debt to Equity

The debt to equity ratio exhibits a consistent declining trend from 0.66 in 2020 to 0.24 in 2024. This indicates a gradual reduction in reliance on debt financing relative to shareholders' equity over the five-year period.

Debt to Equity (Including Operating Lease Liability)

When including operating lease liabilities, the debt to equity ratio also declines, moving from 1.08 in 2020 to 0.52 in 2024. This suggests a decreasing level of total indebtedness relative to equity, even after accounting for lease obligations.

Debt to Capital

The debt to capital ratio decreases steadily from 0.40 in 2020 to 0.19 in 2024. This reflects a strengthening capital structure, with debt constituting a smaller portion of total capital over time.

Debt to Capital (Including Operating Lease Liability)

This ratio mirrors a similar downward trend, falling from 0.52 in 2020 to 0.34 in 2024. The data implies an improvement in the overall capital composition after factoring in lease liabilities.

Debt to Assets

The company's debt to assets ratio shows a slight decline from 0.19 in 2020 to 0.11 in 2024, signaling a reduction in debt relative to total assets, which may indicate enhanced asset coverage or reduced leverage.

Debt to Assets (Including Operating Lease Liability)

Including operating lease liabilities, this ratio remains above the basic debt to assets ratio but similarly decreases from 0.31 to 0.24 over the five years, reflecting a cautious approach to liabilities secured by assets.

Financial Leverage

Financial leverage decreases from 3.44 in 2020 to 2.19 in 2024, suggesting a reduction in asset financing through debt and a greater emphasis on equity financing.

Interest Coverage

The interest coverage ratio displays significant volatility. It improves from 15.69 in 2020 to a peak of 22.09 in 2021, then experiences a steep decline to -1.51 in 2022, indicating a potential period of operating or financial stress. Subsequently, it recovers strongly to 12.8 in 2023 and further to 29.48 in 2024, suggesting improved earnings relative to interest expense by the end of the period.

Fixed Charge Coverage

Fixed charge coverage follows a similar pattern of fluctuation. The ratio rises from 4.63 in 2020 to 5.24 in 2021 before falling sharply to 0.47 in 2022. It then recovers to 3.73 in 2023 and reaches 5.77 in 2024. This indicates temporary challenges in covering fixed charges, with strong recovery thereafter.

The financial data reveals notable trends in the company's capital structure over the analyzed five-year period.

Total Debt

Total debt increased steadily from 61,405 million US dollars in 2020 to a peak of 85,932 million in 2022, indicating a growing reliance on borrowed funds during this period. Subsequently, total debt decreased to 78,917 million in 2023 and further to 68,242 million in 2024, reflecting a strategic reduction in leverage or repayment efforts.

Stockholders’ Equity

Stockholders’ equity showed a strong upward trend throughout the period. It rose from 93,404 million US dollars in 2020 to 138,245 million in 2021, and then continued increasing to 146,043 million in 2022. The growth accelerated subsequently, reaching 201,875 million in 2023 and 285,970 million by 2024, suggesting substantial value creation and retained earnings growth.

Debt to Equity Ratio

The debt to equity ratio declined consistently from 0.66 in 2020 to 0.24 in 2024. This reduction is explained by the combination of decreasing total debt after 2022 and the rapid growth in equity. The progressively lower leverage indicates a shift toward a more conservative capital structure with reduced financial risk.

Overall, the data depict a company that initially increased its borrowing but then transitioned towards strengthening its equity base while systematically lowering debt levels and leveraging. This trend implies an improving financial position with potentially enhanced solvency and reduced dependence on external debt financing.

The analyzed financial data reveals notable trends in the company's capital structure over the observed five-year period. There are fluctuations and shifts in total debt levels, stockholders’ equity, and the debt to equity ratio, each reflecting changes in financial strategy and potential risk profile.

Total debt (including operating lease liability)

The total debt increased steadily from 100,504 million US dollars at the end of 2020 to a peak of 154,972 million US dollars in 2022. After reaching this peak, total debt slightly decreased to 154,556 million in 2023 and further declined to 147,838 million by 2024. This pattern indicates initial debt accumulation followed by a marginal reduction, suggesting a strategic effort to manage or reduce liabilities in the later periods.

Stockholders’ equity

Stockholders’ equity demonstrated consistent and significant growth throughout the entire period. Starting at 93,404 million US dollars in 2020, it rose sharply to 138,245 million in 2021 and continued upward to 146,043 million in 2022. The growth momentum accelerated in the subsequent years, reaching 201,875 million in 2023 and culminating at 285,970 million in 2024. This increasing equity base reflects strong capital accumulation and possibly retained earnings or additional equity influx, enhancing the company’s net asset position.

Debt to equity ratio (including operating lease liability)

The debt to equity ratio shows a clear decreasing trend over the period, starting at 1.08 in 2020 and declining to 0.96 in 2021. There was a slight increase to 1.06 in 2022, correlating with the peak in total debt observed the same year. However, a significant reduction followed in 2023 and 2024, with ratios falling to 0.77 and then to 0.52, respectively. This decline indicates a decreasing reliance on debt relative to equity, implying an improved financial leverage position and potentially lower financial risk.

Overall, the data suggests that the company has been strengthening its equity base considerably while managing its debt levels to achieve a more balanced and less leveraged capital structure by 2024. The reduction in the debt to equity ratio highlights a shift toward greater financial stability and possibly improved creditworthiness.

Total Debt

The total debt exhibited an initial upward trend from 61,405 million US dollars in 2020 to a peak of 85,932 million US dollars in 2022. This was followed by a decrease over the next two years, falling to 68,242 million US dollars by the end of 2024.

Total Capital

Total capital displayed consistent growth throughout the period. It rose from 154,809 million US dollars in 2020 to 354,212 million US dollars in 2024, indicating a significant expansion in the company's capital base.

Debt to Capital Ratio

The debt to capital ratio demonstrated a declining trend. Starting at 0.40 in 2020, it decreased gradually to 0.19 by 2024. This suggests an improving capital structure with reduced reliance on debt financing over the years.

Overall Analysis

The data reveals that while total debt increased until 2022, the subsequent reduction alongside a continuous rise in total capital resulted in a marked decrease in the debt to capital ratio. This indicates enhanced financial leverage and potentially a stronger balance sheet position with reduced risk associated with debt. The company appears to be focusing on strengthening its equity base relative to its liabilities.

Total Debt (Including Operating Lease Liability)

The total debt exhibits a rising trend from 2020 to 2022, increasing from 100,504 million US dollars to 154,972 million US dollars. In 2023, the debt level slightly decreased to 154,556 million US dollars and continued to decline further in 2024 to 147,838 million US dollars. This indicates a peak in debt in 2022 followed by a gradual reduction over the subsequent two years.

Total Capital (Including Operating Lease Liability)

Total capital shows a consistent upward trajectory throughout the period analyzed. Starting at 193,908 million US dollars in 2020, it rose significantly each year to reach 433,808 million US dollars by the end of 2024. This reflects a substantial increase in the company's capital base, more than doubling over the five-year span.

Debt to Capital Ratio (Including Operating Lease Liability)

The debt to capital ratio declines steadily from 0.52 in 2020 to 0.34 in 2024. After a slight dip to 0.49 in 2021 and a minor increase to 0.51 in 2022, the ratio decreased notably to 0.43 in 2023 and further to 0.34 in 2024. This decreasing ratio indicates an improving capital structure with a lower reliance on debt relative to the total capital employed.

Total debt

The total debt exhibited a rising trend from 2020 through 2022, increasing from 61,405 million USD in 2020 to a peak of 85,932 million USD in 2022. Subsequently, a downward movement occurred in 2023 and 2024, reducing debt to 68,242 million USD by the end of 2024. This indicates an initial phase of increasing leverage followed by a concerted effort to reduce debt levels in the most recent periods.

Total assets

Total assets consistently increased over the entire analyzed period without any decline. Starting at 321,195 million USD in 2020, the asset base expanded considerably each year, reaching 624,894 million USD by the end of 2024. This continuous asset growth suggests substantial investment or acquisition activity and an expanding operational scale.

Debt to assets ratio

The debt to assets ratio remained relatively stable around 0.18 to 0.19 from 2020 through 2022, reflecting a consistent leverage position during these years. However, a marked decrease is observed starting in 2023, dropping to 0.15 and further to 0.11 by 2024. This decline indicates that the company improved its financial structure by reducing reliance on debt relative to its asset size, enhancing financial stability and potentially lowering financial risk.

Total debt (including operating lease liability)

The total debt rose from $100,504 million in 2020 to a peak of $154,972 million in 2022. Subsequently, it stabilized, showing a slight decrease to $154,556 million in 2023 and further declining to $147,838 million in 2024. This suggests an initial phase of increased leverage followed by efforts to moderate or reduce indebtedness.

Total assets

Total assets increased consistently over the entire period from $321,195 million in 2020 to $624,894 million in 2024. The growth rate accelerated after 2021, indicating substantial asset accumulation and expansion of the company's asset base.

Debt to assets (including operating lease liability)

The debt to assets ratio remained stable at 0.31 in 2020 and 2021, before slightly increasing to 0.33 in 2022. Following this peak, the ratio decreased to 0.29 in 2023 and further declined to 0.24 in 2024. This trend reflects an improving leverage position relative to the asset base, with debt growing at a slower pace or being reduced as assets expanded more significantly.

Total assets

Total assets have shown a consistent upward trend over the five-year period. Starting from $321,195 million in 2020, total assets increased to $624,894 million in 2024, nearly doubling over the span. This steady growth indicates ongoing expansion and accumulation of resources.

Stockholders’ equity

Stockholders’ equity has also experienced substantial growth between 2020 and 2024. Beginning at $93,404 million in 2020, it rose steadily each year, reaching $285,970 million by 2024. This significant increase suggests strengthened financial stability and possibly retained earnings or equity injections contributing to a larger equity base.

Financial leverage

The financial leverage ratio has declined consistently throughout the observed period, decreasing from 3.44 in 2020 to 2.19 in 2024. This reduction reflects a decrease in the proportion of debt relative to equity, indicating that the company is relying less on borrowed funds and improving its equity funding relative to its assets.

Overall analysis

The data reveals a strong growth trajectory in both assets and equity while simultaneously reducing financial leverage. This suggests enhanced capitalization and a potentially lower financial risk profile. The improving equity position combined with controlled leverage may contribute to greater financial flexibility and strength over time.

The analysis of the financial data reveals significant fluctuations and recovery patterns in earnings before interest and tax (EBIT) over the observed periods. Initially, EBIT displayed a strong upward trend from $25,841 million in 2020 to $39,964 million in 2021. This positive momentum was disrupted in 2022, where EBIT turned negative, registering a loss of $3,572 million. However, the company demonstrated a robust recovery in subsequent years, with EBIT reaching $40,727 million in 2023 and further increasing substantially to $70,919 million in 2024.

Interest Expense

Interest expenses showed a general upward trend from 2020 through 2023. Starting at $1,647 million in 2020, the expense increased annually to reach a peak of $3,182 million in 2023. In 2024, however, interest expense declined significantly to $2,406 million. This reduction after steady increases suggests a possible restructuring of debt or improved interest rates.

Interest Coverage Ratio

The interest coverage ratio, which measures the ability to meet interest obligations through operating earnings, reflected the variations found in EBIT and interest expense values. The ratio increased from 15.69 in 2020 to a peak of 22.09 in 2021, indicating strong coverage. The sharp decline to -1.51 in 2022 corresponds with the negative EBIT of that year, signaling an inability to cover interest expenses from earnings. Recovery was evident in 2023 with the ratio rising to 12.8, and further improvement to a high of 29.48 in 2024, indicating enhanced financial stability and earnings strength relative to interest obligations.

Overall, the company endured a volatile period during 2022, characterized by a negative EBIT and poor coverage of interest expenses. However, a significant recovery followed, with improved operating earnings and reduced interest burden contributing to robust financial health by 2024. The trends suggest effective management of operational profitability and debt servicing capacity in the latter years.

Earnings before fixed charges and tax

The earnings before fixed charges and tax exhibit a generally positive trend from 2020 to 2024, with an initial increase from 30,860 million USD in 2020 to 47,163 million USD in 2021. However, there is a significant drop in 2022 to 5,275 million USD, followed by a recovery to 51,277 million USD in 2023 and a substantial rise to 82,880 million USD in 2024. This indicates volatility in earnings during the observed period, with a sharp decline in 2022 before regaining momentum in subsequent years.

Fixed charges

Fixed charges steadily increase throughout the period, starting from 6,666 million USD in 2020 and rising each year to reach 14,367 million USD in 2024. The consistent upward movement reflects growing obligations related to fixed financial costs such as interest expenses or lease payments.

Fixed charge coverage ratio

The fixed charge coverage ratio, which measures the company's ability to cover fixed charges with earnings, fluctuates significantly. Beginning at 4.63 in 2020, it improves to 5.24 in 2021, signaling a strong ability to meet fixed obligations. In 2022, the ratio sharply declines to 0.47, indicating potential difficulty in covering fixed charges during that year. Recovery follows with the ratio increasing to 3.73 in 2023 and further to 5.77 in 2024, suggesting restored financial stability and increased cushioning of fixed costs by earnings.

Overall analysis

The data depicts a scenario where the company experiences a marked earnings disruption in 2022, adversely affecting its capacity to cover fixed charges. Despite rising fixed charges across all years, the company demonstrates resilience by recovering its earnings and improving fixed charge coverage in 2023 and 2024. The fixed charge coverage ratio over the five-year span highlights a temporary strain in 2022, but overall signals a robust financial position by the end of the period.