Ratios (Summary)

Amazon.com Inc., profitability ratios

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Return on Sales
Gross profit margin 37.07% 35.09% 33.04% 29.48% 27.23%
Operating profit margin 2.31% 3.08% 2.09% 0.20% 1.00%
Net profit margin 1.71% 1.74% 0.56% -0.27% 0.37%
Return on Investment
Return on equity (ROE) 10.95% 12.29% 4.45% -2.24% 2.81%
Return on assets (ROA) 2.31% 2.84% 0.91% -0.44% 0.68%

Source: Based on data from Amazon.com Inc. Annual Reports

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.'s gross profit margin improved from 2015 to 2016 and from 2016 to 2017.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Amazon.com Inc.'s operating profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Amazon.com Inc.'s net profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
ROE A profitability ratio calculated as net income divided by shareholders' equity. Amazon.com Inc.'s ROE improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
ROA A profitability ratio calculated as net income divided by total assets. Amazon.com Inc.'s ROA improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

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Gross Profit Margin

Amazon.com Inc., gross profit margin calculation

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Gross profit 65,932  47,722  35,355  26,236  20,271 
Net sales 177,866  135,987  107,006  88,988  74,452 
Ratio
Gross profit margin1 37.07% 35.09% 33.04% 29.48% 27.23%
Benchmarks
Gross Profit Margin, Competitors
Costco Wholesale Corp. 11.33% 11.35% 11.09% 10.66% 10.62%
eBay Inc. 76.77% 77.65% 79.39% 67.98% 68.62%
Home Depot Inc. 34.16% 34.19% 34.81% 34.75% 34.57%
Lowe's Cos. Inc. 34.55% 34.82% 34.79% 34.59% 34.30%
Netflix Inc. 34.49% 31.72% 32.27% 31.83% 29.52%
Target Corp. 29.68% 29.53% 29.39% 29.53% 29.73%
TJX Cos. Inc. 28.98% 28.79% 28.55% 28.51% 28.43%
Walmart Inc. 24.94% 24.58% 24.29% 24.31% 24.38%

Source: Based on data from Amazon.com Inc. Annual Reports

2017 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 65,932 ÷ 177,866 = 37.07%

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.'s gross profit margin improved from 2015 to 2016 and from 2016 to 2017.

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Operating Profit Margin

Amazon.com Inc., operating profit margin calculation, comparison to benchmarks

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Operating income 4,106  4,186  2,233  178  745 
Net sales 177,866  135,987  107,006  88,988  74,452 
Ratio
Operating profit margin1 2.31% 3.08% 2.09% 0.20% 1.00%
Benchmarks
Operating Profit Margin, Competitors
Costco Wholesale Corp. 3.26% 3.16% 3.19% 2.92% 2.97%
eBay Inc. 23.68% 25.89% 25.57% 19.63% 21.01%
Home Depot Inc. 14.19% 13.30% 12.59% 11.63% 10.39%
Lowe's Cos. Inc. 8.99% 8.41% 8.52% 7.77% 7.05%
Netflix Inc. 7.17% 4.30% 4.51% 7.31% 5.22%
Target Corp. 7.15% 7.49% 6.25% 5.83% 7.46%
TJX Cos. Inc. 11.60% 11.97% 12.40% 12.22% 12.00%
Walmart Inc. 4.73% 5.04% 5.63% 5.68% 5.96%
Operating Profit Margin, Sector
General Retailers 5.82% 6.06% 6.14% 5.94% 6.20%
Operating Profit Margin, Industry
Consumer Services 8.88% 9.01% 9.17% 8.65% 8.66%

Source: Based on data from Amazon.com Inc. Annual Reports

2017 Calculations

1 Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 4,106 ÷ 177,866 = 2.31%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Amazon.com Inc.'s operating profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

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Net Profit Margin

Amazon.com Inc., net profit margin calculation, comparison to benchmarks

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net income (loss) 3,033  2,371  596  (241) 274 
Net sales 177,866  135,987  107,006  88,988  74,452 
Ratio
Net profit margin1 1.71% 1.74% 0.56% -0.27% 0.37%
Benchmarks
Net Profit Margin, Competitors
Costco Wholesale Corp. 2.12% 2.02% 2.09% 1.87% 1.98%
eBay Inc. -10.62% 80.92% 20.08% 0.26% 17.80%
Home Depot Inc. 8.41% 7.92% 7.63% 6.83% 6.07%
Lowe's Cos. Inc. 4.76% 4.31% 4.80% 4.28% 3.88%
Netflix Inc. 4.78% 2.11% 1.81% 4.85% 2.57%
Target Corp. 3.94% 4.56% -2.25% 2.72% 4.17%
TJX Cos. Inc. 6.93% 7.36% 7.62% 7.79% 7.37%
Walmart Inc. 2.83% 3.07% 3.39% 3.39% 3.65%
Net Profit Margin, Sector
General Retailers 3.27% 4.20% 3.21% 3.23% 3.80%
Net Profit Margin, Industry
Consumer Services 6.39% 5.80% 5.52% 4.96% 6.09%

Source: Based on data from Amazon.com Inc. Annual Reports

2017 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 3,033 ÷ 177,866 = 1.71%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Amazon.com Inc.'s net profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

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Return on Equity (ROE)

Amazon.com Inc., ROE calculation, comparison to benchmarks

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net income (loss) 3,033  2,371  596  (241) 274 
Total stockholders' equity 27,709  19,285  13,384  10,741  9,746 
Ratio
ROE1 10.95% 12.29% 4.45% -2.24% 2.81%
Benchmarks
ROE, Competitors
Costco Wholesale Corp. 24.86% 19.46% 22.39% 16.73% 18.82%
eBay Inc. -12.60% 68.94% 26.23% 0.23% 12.08%
Home Depot Inc. 183.64% 110.97% 68.06% 43.00% 25.51%
Lowe's Cos. Inc. 48.07% 33.26% 27.07% 19.29% 14.14%
Netflix Inc. 15.60% 6.97% 5.52% 14.36% 8.43%
Target Corp. 24.99% 25.96% -11.69% 12.14% 18.11%
TJX Cos. Inc. 50.95% 52.88% 51.95% 50.53% 52.01%
Walmart Inc. 17.54% 18.24% 20.10% 21.01% 22.27%
ROE, Sector
General Retailers 22.69% 26.90% 20.30% 18.04% 19.38%
ROE, Industry
Consumer Services 24.99% 22.03% 21.72% 17.92% 20.13%

Source: Based on data from Amazon.com Inc. Annual Reports

2017 Calculations

1 ROE = 100 × Net income (loss) ÷ Total stockholders' equity
= 100 × 3,033 ÷ 27,709 = 10.95%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. Amazon.com Inc.'s ROE improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

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Return on Assets (ROA)

Amazon.com Inc., ROA calculation, comparison to benchmarks

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net income (loss) 3,033  2,371  596  (241) 274 
Total assets 131,310  83,402  65,444  54,505  40,159 
Ratio
ROA1 2.31% 2.84% 0.91% -0.44% 0.68%
Benchmarks
ROA, Competitors
Costco Wholesale Corp. 7.37% 7.09% 7.11% 6.23% 6.73%
eBay Inc. -3.91% 30.47% 9.70% 0.10% 6.88%
Home Depot Inc. 18.52% 16.47% 15.88% 13.29% 11.04%
Lowe's Cos. Inc. 8.99% 8.14% 8.48% 6.98% 6.00%
Netflix Inc. 2.94% 1.37% 1.20% 3.78% 2.08%
Target Corp. 7.31% 8.35% -3.95% 4.42% 6.23%
TJX Cos. Inc. 17.84% 19.81% 19.91% 20.95% 20.05%
Walmart Inc. 6.86% 7.36% 8.03% 7.83% 8.37%
ROA, Sector
General Retailers 6.49% 8.78% 6.77% 6.34% 7.45%
ROA, Industry
Consumer Services 7.91% 7.15% 7.28% 6.53% 7.88%

Source: Based on data from Amazon.com Inc. Annual Reports

2017 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 3,033 ÷ 131,310 = 2.31%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Amazon.com Inc.'s ROA improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

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