Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Amazon.com Inc., long-term (investment) activity ratios
Based on: 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), 10-K (reporting date: 2018-12-31).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Amazon.com Inc. net fixed asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Amazon.com Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Amazon.com Inc. total asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Amazon.com Inc. equity turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Net Fixed Asset Turnover
Amazon.com Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 513,983) | 469,822) | 386,064) | 280,522) | 232,887) | |
| Property and equipment, net | 186,715) | 160,281) | 113,114) | 72,705) | 61,797) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 2.75 | 2.93 | 3.41 | 3.86 | 3.77 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AutoZone Inc. | 3.14 | 3.01 | 2.80 | 2.70 | 2.66 | |
| Home Depot Inc. | 6.00 | 5.35 | 4.84 | 4.84 | 4.57 | |
| Lowe’s Cos. Inc. | 5.05 | 4.68 | 3.86 | 3.87 | 3.48 | |
| TJX Cos. Inc. | 9.21 | 6.38 | 7.83 | 7.42 | 7.16 | |
| Ulta Beauty Inc. | 9.44 | 6.18 | 6.14 | 5.48 | 4.95 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 3.44 | 3.46 | 3.81 | 4.16 | 3.99 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | 3.48 | 3.30 | 3.37 | 3.70 | 3.65 | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net fixed asset turnover = Net sales ÷ Property and equipment, net
= 513,983 ÷ 186,715 = 2.75
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Amazon.com Inc. net fixed asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Amazon.com Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 513,983) | 469,822) | 386,064) | 280,522) | 232,887) | |
| Property and equipment, net | 186,715) | 160,281) | 113,114) | 72,705) | 61,797) | |
| Operating leases | 66,123) | 56,082) | 37,553) | 25,141) | —) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 252,838) | 216,363) | 150,667) | 97,846) | 61,797) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 2.03 | 2.17 | 2.56 | 2.87 | 3.77 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AutoZone Inc. | 2.01 | 1.93 | 1.78 | 2.70 | 2.66 | |
| Home Depot Inc. | 4.85 | 4.31 | 3.89 | 4.84 | 4.57 | |
| Lowe’s Cos. Inc. | 4.15 | 3.90 | 3.20 | 3.87 | 3.48 | |
| TJX Cos. Inc. | 3.44 | 2.29 | 2.90 | 7.42 | 7.16 | |
| Ulta Beauty Inc. | 3.60 | 2.46 | 2.70 | 5.48 | 4.95 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Consumer Discretionary Distribution & Retail | 2.52 | 2.53 | 2.79 | 3.46 | 3.99 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | 2.65 | 2.50 | 2.56 | 3.13 | 3.65 | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 513,983 ÷ 252,838 = 2.03
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Amazon.com Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 and from 2021 to 2022. |
Total Asset Turnover
Amazon.com Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 513,983) | 469,822) | 386,064) | 280,522) | 232,887) | |
| Total assets | 462,675) | 420,549) | 321,195) | 225,248) | 162,648) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 1.11 | 1.12 | 1.20 | 1.25 | 1.43 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AutoZone Inc. | 1.06 | 1.01 | 0.88 | 1.20 | 1.20 | |
| Home Depot Inc. | 2.10 | 1.87 | 2.15 | 2.46 | 2.27 | |
| Lowe’s Cos. Inc. | 2.16 | 1.92 | 1.83 | 2.07 | 1.94 | |
| TJX Cos. Inc. | 1.71 | 1.04 | 1.73 | 2.72 | 2.55 | |
| Ulta Beauty Inc. | 1.81 | 1.21 | 1.52 | 2.10 | 2.02 | |
| Total Asset Turnover, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 1.33 | 1.27 | 1.38 | 1.56 | 1.69 | |
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | 0.96 | 0.88 | 0.85 | 0.95 | 0.97 | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Total asset turnover = Net sales ÷ Total assets
= 513,983 ÷ 462,675 = 1.11
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Amazon.com Inc. total asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Equity Turnover
Amazon.com Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 513,983) | 469,822) | 386,064) | 280,522) | 232,887) | |
| Stockholders’ equity | 146,043) | 138,245) | 93,404) | 62,060) | 43,549) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 3.52 | 3.40 | 4.13 | 4.52 | 5.35 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AutoZone Inc. | — | — | — | — | — | |
| Home Depot Inc. | — | 40.05 | — | — | 69.40 | |
| Lowe’s Cos. Inc. | — | 62.35 | 36.59 | 19.57 | 11.68 | |
| TJX Cos. Inc. | 8.09 | 5.51 | 7.01 | 7.72 | 6.97 | |
| Ulta Beauty Inc. | 5.62 | 3.08 | 3.89 | 3.69 | 3.32 | |
| Equity Turnover, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 5.82 | 5.00 | 6.35 | 7.50 | 8.09 | |
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | 4.33 | 3.82 | 4.93 | 5.99 | 5.70 | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Equity turnover = Net sales ÷ Stockholders’ equity
= 513,983 ÷ 146,043 = 3.52
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Amazon.com Inc. equity turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |