Amazon.com Inc. (NASDAQ:AMZN)

The analysis of the financial ratios reveals distinct trends over the observed periods, indicating shifts in the efficiency of asset and equity utilization.

Net Fixed Asset Turnover

This ratio shows a peak around the end of 2020, reaching approximately 3.41, followed by a gradual decline through subsequent quarters. By the end of the dataset in early 2025, the ratio had decreased to around 2.38. The decline suggests a reduced efficiency in generating sales from fixed assets over time.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

Starting at 2.56 towards the end of 2020, this adjusted ratio exhibits a similar decreasing trend as the standard net fixed asset turnover but at lower values consistently. The ratio declines steadily to about 1.85 by early 2025, indicating that when including lease-related assets, asset utilization efficiency has diminished further.

Total Asset Turnover

The total asset turnover ratio shows a mild increase initially, peaking at 1.3 in mid-2020, then fluctuates slightly hovering near 1.1 to 1.2 for several periods before trending downwards. By early 2025, it declines to approximately 1.01. The relatively modest decrease over several years points to a slow reduction in the overall efficiency of total assets in generating revenue.

Equity Turnover

This ratio starts relatively high at 4.13 near the close of 2020 and shows a steady decreasing pattern over time. It drops consistently and reaches about 2.13 by the first quarter of 2025, indicating a marked reduction in the turnover of equity capital, which suggests either increasing equity levels not matched by proportional revenue growth or decreasing revenue relative to equity.

Overall, the data present a clear trend of declining efficiency in terms of asset and equity utilization over the four-year span. Both the fixed asset turnover and total asset turnover ratios reflect diminishing returns on assets employed, with adjustments for operating leases showing further reduced efficiency. The equity turnover’s significant decrease supports the observation of less robust revenue generation against equity base expansion or slower revenue growth relative to equity increases.

Net Sales

The net sales exhibit a generally upward trend over the analyzed quarters, starting at 75,452 million US dollars in March 2020 and rising to 155,667 million US dollars by March 2025. Peaks are notably observed in the fourth quarters of each year, consistent with seasonal demand increases, reaching the highest value of 187,792 million US dollars in December 2024. The growth rate fluctuates, with some quarters showing modest increases and others reflecting more substantial gains. The early periods of 2021 and 2022 indicate steady recovery and growth after the initial surge seen in the latter part of 2020, possibly reflecting post-pandemic economic conditions.

Property and Equipment, Net

There is a consistent and significant increase in the net value of property and equipment throughout the observed period. Starting at 77,779 million US dollars in March 2020, the figure nearly triples by March 2025, reaching 272,781 million US dollars. The increase is steady across all quarters, indicating ongoing capital investment and asset accumulation. This trend suggests a strategic expansion or enhancement of fixed assets over time, aligning with long-term growth initiatives or infrastructure development.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio shows a declining trend across the reported quarters. Beginning above 3.4 around the end of 2020, it gradually decreases to 2.38 by December 2024. This decline indicates that, relative to the value of fixed assets, the net sales generated per unit of asset have reduced over time. Though sales have increased, the proportionate investment in property and equipment has grown faster, leading to lower asset turnover efficiency. This trend may reflect the acquisition of assets not immediately translating into proportional sales growth or a shift towards more capital-intensive operations.

Net Sales

Net sales exhibit a generally upward trend from March 31, 2020, to December 31, 2025, despite some quarterly fluctuations. Starting at approximately $75.5 billion in the first quarter of 2020, net sales increased significantly, reaching peak values toward the end of each year, with a notably strong spike in the fourth quarters, such as $137.4 billion in December 2021 and $169.9 billion in December 2023.

The data shows a typical seasonality pattern, with lower sales in the first quarters compared to the last quarters of each year. However, the year-on-year increase is evident, with the first quarter sales rising from $75.5 billion in 2020 to $155.7 billion by March 31, 2025. Periods of slower growth or slight declines, such as a dip in the first quarter of 2022 and 2023, are followed by recovery and subsequent growth, indicating resilience and underlying expansion in revenues.

Property and Equipment, Net

Property and equipment, including operating lease right-of-use assets, show a consistent and steady increase throughout the entire period. Values start at approximately $104.1 billion in March 2020 and rise to $351.3 billion by March 2025. This upward trajectory suggests sustained capital investment and expansion of physical and leased assets over time.

The growth in property and equipment does not exhibit strong seasonal variation but rather a continuous investment trend, which supports the company's operational scale-up and possibly capacity expansion aligned with increasing sales volumes.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

The net fixed asset turnover ratio, which reflects the efficiency in utilizing fixed assets to generate net sales, is available from September 30, 2020, onwards. Initially, the ratio stands at 2.56 and peaks slightly at 2.61 in December 2020, indicating high efficiency in asset use.

After this peak, there is a gradual decline in the ratio, moving down steadily each quarter to 1.85 by December 31, 2025. This trend suggests that while fixed assets have grown substantially, sales have not increased proportionally at the same rate, resulting in decreasing asset turnover efficiency. The decline in asset turnover ratio could imply either more capital-intensive operations, slower revenue growth relative to asset base expansion, or a combination of both.

Net Sales

Net sales demonstrate a generally increasing trend over the reported periods, with some fluctuations. Beginning at $75,452 million in March 2020, sales rose steadily to a peak of $169,961 million in December 2023. After this peak, a decline is observed in the subsequent quarter to $143,313 million in March 2024, followed by moderate fluctuations but maintaining elevated levels around $150,000 million to $187,792 million by December 2024. The latest figure for March 2025 is $155,667 million, indicating some volatility but an overall upward trajectory compared to initial values.

Total Assets

Total assets show a persistent growth trend throughout the periods, beginning at $221,238 million in March 2020 and steadily increasing to $643,256 million by March 2025. The asset base more than doubled, reflecting significant expansion. The increases appear consistent quarter over quarter without notable contractions, indicating sustained investment or accumulation of assets.

Total Asset Turnover Ratio

The total asset turnover ratio exhibits a declining trend over time. Starting at 1.2 around December 2020, it peaks at 1.3 in June 2021, then generally decreases to approximately 1.0 by March 2025. This decline suggests that despite higher asset levels, the efficiency of generating sales from assets has diminished somewhat, potentially indicating that asset growth has outpaced sales growth in recent periods.

Summary

The company shows strong growth in both net sales and total assets from 2020 to 2025, indicating business expansion. However, the falling asset turnover ratio points to decreasing operational efficiency relative to asset size. The sales figures correlate with asset growth to a moderate extent but not sufficiently to sustain the initial asset turnover efficiency. This pattern might suggest increased capital spending or acquisitions that have yet to fully translate into proportional sales growth. Monitoring the asset utilization in relation to sales will be key to assessing the capacity to convert investment into revenue effectively.

Net Sales

Net sales exhibit a generally increasing trend over the observed periods, starting from approximately $75.5 billion in March 2020 and rising to around $155.7 billion by March 2025. There are noticeable seasonal fluctuations, with higher sales often observed in December quarters, indicating possible seasonality related to holiday shopping. The data also show some temporary declines in certain quarters, such as from December 2021 ($137.4 billion) to March 2022 ($116.4 billion), but the overall trajectory remains upward over the five-year span.

Stockholders’ Equity

Stockholders' equity consistently increases from about $65.3 billion in March 2020 to $305.9 billion by March 2025, indicating substantial growth in the company's net assets. The equity growth is steady and continuous across all quarters, without significant interruptions or decreases. This suggests effective retention of earnings and/or capital injections that have strengthened the company’s financial structure over the period.

Equity Turnover

The equity turnover ratio shows a clear declining trend, starting at approximately 4.13 in December 2020 and decreasing progressively to 2.13 by March 2025. This ratio reflects how efficiently the company is generating sales relative to its equity base. The downward movement indicates that sales, although growing in absolute terms, are increasing at a slower rate compared to the growth in equity. This could imply a reduction in asset utilization efficiency or a strategic expansion leading to increased equity that has yet to be fully translated into proportional sales growth.