Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Amazon.com Inc., profitability ratios
Based on: 10-K (reporting date: 2023-12-31), 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Amazon.com Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Amazon.com Inc. operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Amazon.com Inc. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Amazon.com Inc. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Amazon.com Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Gross Profit Margin
Amazon.com Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 270,046) | 225,152) | 197,478) | 152,757) | 114,986) | |
| Net sales | 574,785) | 513,983) | 469,822) | 386,064) | 280,522) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 46.98% | 43.81% | 42.03% | 39.57% | 40.99% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Home Depot Inc. | 33.53% | 33.63% | 33.95% | 34.09% | 34.34% | |
| Lowe’s Cos. Inc. | 33.23% | 33.30% | 33.01% | 31.80% | 32.12% | |
| TJX Cos. Inc. | 27.61% | 28.50% | 23.66% | 28.46% | 28.59% | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 270,046 ÷ 574,785 = 46.98%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Amazon.com Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Amazon.com Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 36,852) | 12,248) | 24,879) | 22,899) | 14,541) | |
| Net sales | 574,785) | 513,983) | 469,822) | 386,064) | 280,522) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 6.41% | 2.38% | 5.30% | 5.93% | 5.18% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Home Depot Inc. | 15.27% | 15.24% | 13.84% | 14.37% | 14.35% | |
| Lowe’s Cos. Inc. | 10.47% | 12.56% | 10.77% | 8.75% | 5.63% | |
| TJX Cos. Inc. | 9.73% | 9.79% | 1.81% | 10.59% | 10.82% | |
| Operating Profit Margin, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 8.63% | 6.44% | 7.38% | 8.11% | 7.68% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 9.12% | 8.07% | 8.16% | 5.53% | 7.81% | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 36,852 ÷ 574,785 = 6.41%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Amazon.com Inc. operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Net Profit Margin
Amazon.com Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 30,425) | (2,722) | 33,364) | 21,331) | 11,588) | |
| Net sales | 574,785) | 513,983) | 469,822) | 386,064) | 280,522) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 5.29% | -0.53% | 7.10% | 5.53% | 4.13% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Home Depot Inc. | 10.87% | 10.87% | 9.74% | 10.20% | 10.28% | |
| Lowe’s Cos. Inc. | 6.63% | 8.77% | 6.51% | 5.93% | 3.25% | |
| TJX Cos. Inc. | 7.00% | 6.76% | 0.28% | 7.84% | 7.85% | |
| Net Profit Margin, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 6.54% | 3.14% | 7.21% | 6.58% | 5.63% | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 7.80% | 4.64% | 8.35% | 4.16% | 6.11% | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 2023 Calculation
Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 30,425 ÷ 574,785 = 5.29%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Amazon.com Inc. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Return on Equity (ROE)
Amazon.com Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 30,425) | (2,722) | 33,364) | 21,331) | 11,588) | |
| Stockholders’ equity | 201,875) | 146,043) | 138,245) | 93,404) | 62,060) | |
| Profitability Ratio | ||||||
| ROE1 | 15.07% | -1.86% | 24.13% | 22.84% | 18.67% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Home Depot Inc. | 1,095.07% | — | 390.00% | — | — | |
| Lowe’s Cos. Inc. | — | — | 406.05% | 217.09% | 63.50% | |
| TJX Cos. Inc. | 54.97% | 54.69% | 1.55% | 55.01% | 60.61% | |
| ROE, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 29.39% | 17.48% | 35.05% | 40.86% | 40.77% | |
| ROE, Industry | ||||||
| Consumer Discretionary | 30.04% | 19.29% | 30.07% | 18.30% | 31.39% | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 2023 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 30,425 ÷ 201,875 = 15.07%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Amazon.com Inc. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Return on Assets (ROA)
Amazon.com Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 30,425) | (2,722) | 33,364) | 21,331) | 11,588) | |
| Total assets | 527,854) | 462,675) | 420,549) | 321,195) | 225,248) | |
| Profitability Ratio | ||||||
| ROA1 | 5.76% | -0.59% | 7.93% | 6.64% | 5.14% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Home Depot Inc. | 22.38% | 22.86% | 18.23% | 21.94% | 25.27% | |
| Lowe’s Cos. Inc. | 14.73% | 18.91% | 12.49% | 10.85% | 6.71% | |
| TJX Cos. Inc. | 12.34% | 11.53% | 0.29% | 13.55% | 21.36% | |
| ROA, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 8.50% | 4.19% | 9.17% | 9.20% | 8.83% | |
| ROA, Industry | ||||||
| Consumer Discretionary | 7.41% | 4.34% | 7.05% | 3.37% | 5.62% | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 2023 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 30,425 ÷ 527,854 = 5.76%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Amazon.com Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |