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: 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).
| 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 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Amazon.com Inc. operating profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Amazon.com Inc. net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Amazon.com Inc. ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Amazon.com Inc. ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Gross Profit Margin
Amazon.com Inc., gross profit margin 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) | ||||||
| Gross profit | 225,152) | 197,478) | 152,757) | 114,986) | 93,731) | |
| Net sales | 513,983) | 469,822) | 386,064) | 280,522) | 232,887) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 43.81% | 42.03% | 39.57% | 40.99% | 40.25% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AutoZone Inc. | 52.13% | 52.75% | 53.60% | 53.65% | 53.24% | |
| Home Depot Inc. | 33.63% | 33.95% | 34.09% | 34.34% | 34.05% | |
| Lowe’s Cos. Inc. | 33.30% | 33.01% | 31.80% | 32.12% | 34.11% | |
| TJX Cos. Inc. | 28.50% | 23.66% | 28.46% | 28.59% | 28.89% | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 225,152 ÷ 513,983 = 43.81%
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 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Amazon.com Inc., operating profit margin 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) | ||||||
| Operating income | 12,248) | 24,879) | 22,899) | 14,541) | 12,421) | |
| Net sales | 513,983) | 469,822) | 386,064) | 280,522) | 232,887) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 2.38% | 5.30% | 5.93% | 5.18% | 5.33% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AutoZone Inc. | 20.12% | 20.13% | 19.14% | 18.68% | 16.14% | |
| Home Depot Inc. | 15.24% | 13.84% | 14.37% | 14.35% | 14.55% | |
| Lowe’s Cos. Inc. | 12.56% | 10.77% | 8.75% | 5.63% | 9.60% | |
| TJX Cos. Inc. | 9.79% | 1.81% | 10.59% | 10.82% | 10.84% | |
| Operating Profit Margin, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 6.71% | 7.63% | 8.33% | 7.93% | 8.76% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 8.56% | 8.90% | 6.58% | 7.72% | 8.13% | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 12,248 ÷ 513,983 = 2.38%
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 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Amazon.com Inc., net profit margin 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 income (loss) | (2,722) | 33,364) | 21,331) | 11,588) | 10,073) | |
| Net sales | 513,983) | 469,822) | 386,064) | 280,522) | 232,887) | |
| Profitability Ratio | ||||||
| Net profit margin1 | -0.53% | 7.10% | 5.53% | 4.13% | 4.33% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AutoZone Inc. | 14.95% | 14.84% | 13.72% | 13.63% | 11.92% | |
| Home Depot Inc. | 10.87% | 9.74% | 10.20% | 10.28% | 8.55% | |
| Lowe’s Cos. Inc. | 8.77% | 6.51% | 5.93% | 3.25% | 5.02% | |
| TJX Cos. Inc. | 6.76% | 0.28% | 7.84% | 7.85% | 7.27% | |
| Net Profit Margin, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 3.37% | 7.36% | 6.72% | 5.81% | 5.81% | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 5.22% | 9.26% | 5.31% | 5.99% | 6.25% | |
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 profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × -2,722 ÷ 513,983 = -0.53%
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Equity (ROE)
Amazon.com Inc., ROE 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 income (loss) | (2,722) | 33,364) | 21,331) | 11,588) | 10,073) | |
| Stockholders’ equity | 146,043) | 138,245) | 93,404) | 62,060) | 43,549) | |
| Profitability Ratio | ||||||
| ROE1 | -1.86% | 24.13% | 22.84% | 18.67% | 23.13% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AutoZone Inc. | — | — | — | — | — | |
| Home Depot Inc. | — | 390.00% | — | — | 593.54% | |
| Lowe’s Cos. Inc. | — | 406.05% | 217.09% | 63.50% | 58.69% | |
| TJX Cos. Inc. | 54.69% | 1.55% | 55.01% | 60.61% | 50.66% | |
| ROE, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 19.62% | 36.95% | 43.01% | 44.22% | 47.88% | |
| ROE, Industry | ||||||
| Consumer Discretionary | 22.57% | 35.39% | 26.20% | 36.09% | 35.77% | |
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
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × -2,722 ÷ 146,043 = -1.86%
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Assets (ROA)
Amazon.com Inc., ROA 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 income (loss) | (2,722) | 33,364) | 21,331) | 11,588) | 10,073) | |
| Total assets | 462,675) | 420,549) | 321,195) | 225,248) | 162,648) | |
| Profitability Ratio | ||||||
| ROA1 | -0.59% | 7.93% | 6.64% | 5.14% | 6.19% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AutoZone Inc. | 15.91% | 14.95% | 12.01% | 16.34% | 14.31% | |
| Home Depot Inc. | 22.86% | 18.23% | 21.94% | 25.27% | 19.38% | |
| Lowe’s Cos. Inc. | 18.91% | 12.49% | 10.85% | 6.71% | 9.77% | |
| TJX Cos. Inc. | 11.53% | 0.29% | 13.55% | 21.36% | 18.55% | |
| ROA, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 4.47% | 9.32% | 9.29% | 9.06% | 9.82% | |
| ROA, Industry | ||||||
| Consumer Discretionary | 5.01% | 8.12% | 4.47% | 5.64% | 6.04% | |
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
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -2,722 ÷ 462,675 = -0.59%
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |