Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Amazon.com Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Gross Profit Margin
- The gross profit margin exhibits a consistent upward trend over the periods analyzed. Starting at 40.01% in the first quarter of 2021, it gradually increases each quarter, reaching 50.05% by the third quarter of 2025. This steady improvement suggests enhanced efficiency in production or favorable changes in pricing and cost management.
- Operating Profit Margin
- Operating profit margin shows a more fluctuating pattern with initial decline followed by a substantial recovery. It starts at 6.63% in early 2021, declining steadily to a low of 2.38% by the last quarter of 2022. From that point, the margin rises significantly, peaking at 11.37% in the third quarter of 2025. This recovery indicates improvements in operating efficiency and possibly better control over operating expenses.
- Net Profit Margin
- Net profit margin trends similarly to the operating margin but with more volatility. It decreases from 6.42% in early 2021 to a negative margin of -0.53% at the end of 2022, pointing to a quarter of net losses. Subsequently, the margin recovers steadily, reaching 11.06% by the third quarter of 2025. This trajectory reflects initial profitability challenges followed by robust restoration of net earnings.
- Return on Equity (ROE)
- ROE follows a fluctuating path with a notable dip into negative territory (-1.86%) in the last quarter of 2022 after declining from 26.04% in early 2021. The measure recovers consistently afterwards, achieving 21.56% by mid-2025, before slightly decreasing towards the end of the data period. The trend indicates strong recovery in shareholder value generation after significant setbacks.
- Return on Assets (ROA)
- ROA exhibits a similar pattern to ROE. Starting at 8.33% in early 2021, it drops to -0.59% in the last quarter of 2022, reflecting asset underperformance or losses. Following this, ROA improves steadily to reach 10.51% by late 2025. This suggests increasing efficiency in asset utilization and overall profitability improvements.
Return on Sales
Return on Investment
Gross Profit Margin
Amazon.com Inc., gross profit margin calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Gross profit | 91,499) | 86,893) | 78,691) | 88,899) | 77,900) | 74,192) | 70,680) | 77,408) | 68,061) | 65,010) | 59,567) | 63,564) | 56,833) | 54,810) | 49,945) | 54,577) | 47,882) | 48,904) | 46,115) | ||||||
| Net sales | 180,169) | 167,702) | 155,667) | 187,792) | 158,877) | 147,977) | 143,313) | 169,961) | 143,083) | 134,383) | 127,358) | 149,204) | 127,101) | 121,234) | 116,444) | 137,412) | 110,812) | 113,080) | 108,518) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Gross profit margin1 | 50.05% | 49.61% | 49.16% | 48.85% | 48.41% | 48.04% | 47.59% | 46.98% | 46.24% | 45.53% | 44.73% | 43.81% | 43.04% | 42.65% | 42.14% | 42.03% | 41.31% | 40.68% | 40.01% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Home Depot Inc. | 33.50% | 33.60% | 33.48% | 33.38% | 33.42% | 33.49% | 33.51% | 33.53% | 33.51% | 33.53% | 33.58% | 33.63% | 33.72% | 33.72% | 33.94% | 33.95% | 34.03% | 34.10% | 34.06% | ||||||
| Lowe’s Cos. Inc. | 33.21% | 33.21% | 33.27% | 33.39% | 33.33% | 33.25% | 33.14% | 33.23% | 33.38% | 33.33% | 33.49% | 33.30% | 33.06% | 32.97% | 33.06% | 33.01% | 32.94% | 32.89% | 32.23% | ||||||
| TJX Cos. Inc. | 30.40% | 30.27% | 30.22% | 30.00% | 28.99% | 28.48% | 27.85% | 27.61% | 27.92% | 28.03% | 28.45% | 28.50% | 28.78% | 28.91% | 27.61% | 23.66% | 23.97% | 23.61% | 25.04% | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Gross profit margin = 100
× (Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025
+ Gross profitQ4 2024)
÷ (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
= 100 × (91,499 + 86,893 + 78,691 + 88,899)
÷ (180,169 + 167,702 + 155,667 + 187,792)
= 50.05%
2 Click competitor name to see calculations.
The financial data reveals a generally positive trend in the company’s quarterly performance over the observed periods. Analysis of the key financial metrics indicates growing sales volumes accompanied by improving profitability margins.
- Net Sales
- There is a clear upward trajectory in net sales from approximately 108.5 billion US dollars in the first quarter of 2021 to over 180 billion US dollars by the third quarter of 2025. This consistent increase reflects strong revenue growth across the reported quarters, with some seasonal fluctuations notably at the end of each year where sales peak, likely influenced by consumer behavior patterns such as holiday shopping.
- Gross Profit
- Gross profit has shown a steady rise from around 46.1 billion US dollars in early 2021 to a peak near 88.9 billion US dollars by the final quarter of 2024, followed by a slight reduction but remaining robust at approximately 91.5 billion US dollars in the third quarter of 2025. This upward movement aligns with the growth in sales, suggesting effective cost management and potentially higher revenue from more profitable segments or products.
- Gross Profit Margin
- The gross profit margin percentage improved steadily from about 40% in early 2021 to over 50% by the later quarters of 2025. This progression implies enhanced operational efficiency and pricing power, as the company is generating more profit per dollar of sales over time. The margin increase is consistent quarter over quarter, indicating a sustained improvement rather than short-term fluctuations.
Overall, the data depicts a company successfully expanding its sales base while concurrently improving profitability ratios. The continuous increase in gross profit margin is particularly notable, pointing to advantageous cost control measures or shifts in product mix favoring higher-margin offerings. Seasonal patterns are also evident but do not detract from the long-term positive growth trends in both sales and profitability.
Operating Profit Margin
Amazon.com Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Operating income | 17,422) | 19,171) | 18,405) | 21,203) | 17,411) | 14,672) | 15,307) | 13,209) | 11,188) | 7,681) | 4,774) | 2,737) | 2,525) | 3,317) | 3,669) | 3,460) | 4,852) | 7,702) | 8,865) | ||||||
| Net sales | 180,169) | 167,702) | 155,667) | 187,792) | 158,877) | 147,977) | 143,313) | 169,961) | 143,083) | 134,383) | 127,358) | 149,204) | 127,101) | 121,234) | 116,444) | 137,412) | 110,812) | 113,080) | 108,518) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Operating profit margin1 | 11.02% | 11.37% | 11.02% | 10.75% | 9.77% | 9.00% | 8.02% | 6.41% | 4.76% | 3.29% | 2.54% | 2.38% | 2.58% | 3.15% | 4.12% | 5.30% | 6.18% | 6.68% | 6.63% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Home Depot Inc. | 13.70% | 13.91% | 13.97% | 14.21% | 14.51% | 14.88% | 15.19% | 15.27% | 15.33% | 15.30% | 15.20% | 15.24% | 15.10% | 14.79% | 14.70% | 13.84% | 14.01% | 13.99% | 13.85% | ||||||
| Lowe’s Cos. Inc. | 12.33% | 12.48% | 12.79% | 13.38% | 12.83% | 10.51% | 10.60% | 10.47% | 10.74% | 12.76% | 12.72% | 12.56% | 12.36% | 11.79% | 11.55% | 10.77% | 10.64% | 10.53% | 9.30% | ||||||
| TJX Cos. Inc. | 11.07% | 10.96% | 10.86% | 10.69% | 10.17% | 10.02% | 9.82% | 9.73% | 9.76% | 9.77% | 10.18% | 9.79% | 9.55% | 9.32% | 7.05% | 1.81% | 3.13% | 3.26% | 5.86% | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025
+ Operating incomeQ4 2024)
÷ (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
= 100 × (17,422 + 19,171 + 18,405 + 21,203)
÷ (180,169 + 167,702 + 155,667 + 187,792)
= 11.02%
2 Click competitor name to see calculations.
The financial data reveals several significant trends in the company's quarterly performance over the observed periods. Net sales demonstrate a generally upward trajectory, with some fluctuations. Starting at $108.5 billion in the first quarter of 2021, sales experienced steady growth, peaking at $187.8 billion by the fourth quarter of 2024. Despite periodic declines, such as in early 2023 and mid-2025, the overall trend indicates increasing revenue generation capacity.
Operating income presents a more volatile pattern compared to net sales. Notably, the operating income peaked at $8.9 billion in the first quarter of 2021 before declining steadily throughout 2021 and 2022, reaching a low point around the third quarter of 2022 at $2.5 billion. After this period, a significant recovery occurred, with operating income rising sharply from $4.8 billion in the third quarter of 2023 to $21.2 billion in the fourth quarter of 2024. However, some variability is apparent in 2025, with operating income fluctuating around $17 to $19 billion.
The operating profit margin follows a pattern reflecting the trends in operating income relative to net sales. Initially high at around 6.6% in early 2021, the margin declined steadily through 2021 and 2022, reaching a low of approximately 2.4% by the end of 2022. From 2023 onward, there is a marked improvement in profitability, with the margin increasing to over 11% by late 2024 and sustaining roughly that level into 2025. This recovery suggests enhanced operational efficiency or cost management during the latter periods despite the fluctuations in absolute operating income.
In summary, the company navigated through a challenging period in 2021-2022, marked by declining profitability and operating income amidst fluctuating sales. However, it showed a robust recovery beginning in 2023, as evidenced by both improving margins and accelerating operating income growth alongside rising net sales. This pattern indicates effective strategic adjustments leading to stronger financial performance in recent quarters.
- Net Sales
- Overall growth with fluctuations; increased from $108.5B in Q1 2021 to a peak of $187.8B in Q4 2024; some declines in early 2023 and mid-2025.
- Operating Income
- Volatile trend; initial peak in Q1 2021 at $8.9B; decline through 2021-2022 to $2.5B; strong recovery from 2023 reaching $21.2B by Q4 2024; some fluctuations in 2025.
- Operating Profit Margin
- Declined from ~6.6% in early 2021 to ~2.4% at end of 2022; significant improvement from 2023 onward, exceeding 11% by late 2024 and maintaining that level into 2025.
Net Profit Margin
Amazon.com Inc., net profit margin calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) | 21,187) | 18,164) | 17,127) | 20,004) | 15,328) | 13,485) | 10,431) | 10,624) | 9,879) | 6,750) | 3,172) | 278) | 2,872) | (2,028) | (3,844) | 14,323) | 3,156) | 7,778) | 8,107) | ||||||
| Net sales | 180,169) | 167,702) | 155,667) | 187,792) | 158,877) | 147,977) | 143,313) | 169,961) | 143,083) | 134,383) | 127,358) | 149,204) | 127,101) | 121,234) | 116,444) | 137,412) | 110,812) | 113,080) | 108,518) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Net profit margin1 | 11.06% | 10.54% | 10.14% | 9.29% | 8.04% | 7.35% | 6.38% | 5.29% | 3.62% | 2.43% | 0.82% | -0.53% | 2.25% | 2.39% | 4.48% | 7.10% | 5.73% | 6.64% | 6.42% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Home Depot Inc. | 9.45% | 9.71% | 9.79% | 9.92% | 10.22% | 10.48% | 10.75% | 10.87% | 10.87% | 10.88% | 10.83% | 10.87% | 10.79% | 10.55% | 10.45% | 9.74% | 9.94% | 9.91% | 9.79% | ||||||
| Lowe’s Cos. Inc. | 8.19% | 8.25% | 8.46% | 8.94% | 8.49% | 6.48% | 6.65% | 6.63% | 6.97% | 8.84% | 8.85% | 8.77% | 8.63% | 7.41% | 7.23% | 6.51% | 6.29% | 7.12% | 6.17% | ||||||
| TJX Cos. Inc. | 8.63% | 8.56% | 8.47% | 8.25% | 7.85% | 7.77% | 7.56% | 7.00% | 6.90% | 6.77% | 6.69% | 6.76% | 5.85% | 5.81% | 4.00% | 0.28% | 2.24% | 2.11% | 4.57% | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Net profit margin = 100
× (Net income (loss)Q3 2025
+ Net income (loss)Q2 2025
+ Net income (loss)Q1 2025
+ Net income (loss)Q4 2024)
÷ (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
= 100 × (21,187 + 18,164 + 17,127 + 20,004)
÷ (180,169 + 167,702 + 155,667 + 187,792)
= 11.06%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income demonstrated notable volatility over the periods analyzed. Initial quarters showed strong profitability with figures peaking at over 14 billion US dollars by the end of 2021. However, this was followed by a sharp reversal in early 2022, including a significant loss of nearly 3.8 billion US dollars. From mid-2022 onward, the net income recovered continuously, exhibiting a steady upward trend and surpassing previous highs, reaching over 21 billion US dollars by late 2025. This recovery indicates restored profitability and effective operational adjustments after the downturn.
- Net Sales
- Net sales showed a consistent growth trajectory across the reviewed periods. The revenue increased from around 108.5 billion US dollars in early 2021 to approximately 180 billion US dollars by late 2025. Despite some fluctuations within individual quarters, the overall pattern reveals sustained expansion in sales volume or value. The growth accelerated notably after late 2022, as reflected in larger jumps between sequential quarters, marking enhanced market penetration or higher demand.
- Net Profit Margin
- The net profit margin followed a pattern reflective of the net income fluctuations. Early 2021 margins were relatively strong, peaking at just above 7% by year-end. This was followed by a sharp decline in early 2022, including a temporary negative margin zone. Subsequently, margins improved steadily in the latter quarters, reaching over 11% by late 2025. This progression indicates improved cost management and operational efficiency, contributing to rising profitability relative to sales.
- General Financial Trends and Insights
- The data reveals a pronounced dip in profitability during the first half of 2022, coinciding with a period of slower margin and net income performance despite continued sales growth. The subsequent recovery and consistent upward trends in both net income and profit margin from mid-2022 through 2025 suggest successful strategic or operational adjustments. Moreover, the simultaneous increase in net sales and profit margins emphasizes effective scaling and improved financial health. Overall, the trajectory portrays a company that faced significant challenges but has demonstrated robust recovery and enhanced profitability.
Return on Equity (ROE)
Amazon.com Inc., ROE calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) | 21,187) | 18,164) | 17,127) | 20,004) | 15,328) | 13,485) | 10,431) | 10,624) | 9,879) | 6,750) | 3,172) | 278) | 2,872) | (2,028) | (3,844) | 14,323) | 3,156) | 7,778) | 8,107) | ||||||
| Stockholders’ equity | 369,631) | 333,775) | 305,867) | 285,970) | 259,151) | 236,447) | 216,661) | 201,875) | 182,973) | 168,602) | 154,526) | 146,043) | 137,489) | 131,402) | 134,001) | 138,245) | 120,564) | 114,803) | 103,320) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROE1 | 20.69% | 21.16% | 21.56% | 20.72% | 19.24% | 18.79% | 17.39% | 15.07% | 10.97% | 7.75% | 2.78% | -1.86% | 8.24% | 8.83% | 15.98% | 24.13% | 21.78% | 25.64% | 26.04% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||
| Home Depot Inc. | 252.51% | 334.21% | 817.03% | 1,450.48% | 1,098.18% | 1,215.96% | 4,626.24% | 1,095.07% | 1,317.03% | 7,124.47% | — | — | 1,539.90% | 736.64% | 844.74% | 390.00% | 813.68% | — | — | ||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,532.36% | 406.05% | 131.77% | 131.40% | 266.43% | ||||||
| TJX Cos. Inc. | 59.57% | 61.21% | 62.02% | 61.27% | 60.14% | 60.25% | 59.20% | 54.97% | 60.02% | 62.26% | 59.63% | 54.69% | 41.40% | 39.21% | 24.63% | 1.55% | 13.47% | 15.26% | 35.54% | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
ROE = 100
× (Net income (loss)Q3 2025
+ Net income (loss)Q2 2025
+ Net income (loss)Q1 2025
+ Net income (loss)Q4 2024)
÷ Stockholders’ equity
= 100 × (21,187 + 18,164 + 17,127 + 20,004)
÷ 369,631 = 20.69%
2 Click competitor name to see calculations.
- Net Income (Loss) Trend
- The net income exhibited significant fluctuations over the observed periods. Initially, there was strong profitability with values peaking at 14,323 million US dollars by December 31, 2021. This was followed by a sharp decline into negative territory in the first two quarters of 2022, indicating a period of losses. Subsequently, the net income demonstrated a consistent recovery, with growth resuming from the third quarter of 2022 onward. By the end of the timeline, net income reached a notably higher level of 21,187 million US dollars in the third quarter of 2025, suggesting strong financial performance and operational improvement.
- Stockholders' Equity Evolution
- Stockholders’ equity showed a steady and continuous increase throughout the entire period. Starting from 103,320 million US dollars at the end of the first quarter of 2021, it rose systematically, surpassing 369,631 million US dollars by the third quarter of 2025. This upward trend reflects consistent capital accumulation and reinvestment of earnings, enhancing the company’s financial stability and shareholder value over time.
- Return on Equity (ROE) Analysis
- Return on equity followed a varied trajectory. At the start, ROE was robust, peaking above 26% in the first quarter of 2021. This performance declined moderately through 2021 and experienced a more pronounced drop to negative levels by the end of 2022, coinciding with the period of net income losses. From early 2023, ROE recovered and sustained an upward trend, reaching over 20% by late 2025. These dynamics indicate initial high efficiency in generating returns on equity, a period of operational or market challenges impacting profitability, and a subsequent restoration of effective capital utilization as profitability improved.
- Overall Insights
- The financial analysis reveals a company experiencing cyclical income variations, with a clear dip into losses during the early part of 2022, followed by a strong recovery phase. The steady increase in stockholders' equity highlights ongoing capital strengthening, while the rebound in ROE underscores improved profitability and management effectiveness post-2022. The patterns suggest resilience and growth potential after a temporary setback.
Return on Assets (ROA)
Amazon.com Inc., ROA calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) | 21,187) | 18,164) | 17,127) | 20,004) | 15,328) | 13,485) | 10,431) | 10,624) | 9,879) | 6,750) | 3,172) | 278) | 2,872) | (2,028) | (3,844) | 14,323) | 3,156) | 7,778) | 8,107) | ||||||
| Total assets | 727,921) | 682,170) | 643,256) | 624,894) | 584,626) | 554,818) | 530,969) | 527,854) | 486,883) | 477,607) | 464,378) | 462,675) | 428,362) | 419,728) | 410,767) | 420,549) | 382,406) | 360,319) | 323,077) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROA1 | 10.51% | 10.35% | 10.25% | 9.48% | 8.53% | 8.01% | 7.10% | 5.76% | 4.12% | 2.74% | 0.92% | -0.59% | 2.64% | 2.77% | 5.21% | 7.93% | 6.87% | 8.17% | 8.33% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||
| Home Depot Inc. | 15.02% | 15.25% | 18.77% | 19.79% | 20.78% | 21.25% | 21.92% | 22.38% | 22.24% | 22.27% | 21.57% | 22.86% | 21.82% | 21.54% | 20.35% | 18.23% | 18.66% | 18.67% | 18.68% | ||||||
| Lowe’s Cos. Inc. | 15.32% | 15.42% | 15.92% | 18.49% | 18.02% | 13.58% | 13.86% | 14.73% | 14.23% | 18.04% | 17.00% | 18.91% | 16.63% | 14.19% | 13.32% | 12.49% | 10.55% | 11.06% | 9.98% | ||||||
| TJX Cos. Inc. | 15.01% | 15.59% | 15.68% | 15.04% | 13.54% | 13.77% | 13.25% | 12.34% | 11.96% | 12.40% | 12.04% | 11.53% | 8.87% | 8.73% | 4.99% | 0.29% | 2.38% | 2.68% | 6.63% | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
ROA = 100
× (Net income (loss)Q3 2025
+ Net income (loss)Q2 2025
+ Net income (loss)Q1 2025
+ Net income (loss)Q4 2024)
÷ Total assets
= 100 × (21,187 + 18,164 + 17,127 + 20,004)
÷ 727,921 = 10.51%
2 Click competitor name to see calculations.
The financial analysis reveals notable variability in net income over the reported periods. Initially, net income demonstrated a strong performance with values peaking at over $14 billion by the end of 2021. However, this was followed by significant fluctuations including a substantial loss recorded in early 2022, where net income fell to negative figures around -$3.8 billion. Subsequently, the company experienced a recovery phase, with net income increasing consistently and reaching a new high exceeding $21 billion by the third quarter of 2025.
Total assets showed a steady and continuous upward trend throughout the entire period. Beginning at approximately $323 billion in early 2021, total assets grew consistently each quarter, surpassing the $727 billion mark by the third quarter of 2025. This indicates sustained investment and asset accumulation over time, with no evident decline or major volatility in asset base.
Return on Assets (ROA) presented a somewhat cyclical pattern but with a positive long-term trajectory. Starting at 8.33% in the first quarter of 2021, ROA declined steadily through 2022, reaching a low of approximately -0.59% by the end of that year, indicating a period of diminished profitability relative to assets. Following this trough, ROA improved steadily, climbing to over 10% by late 2024 and maintaining this elevated level through 2025. This suggests an improvement in asset utilization efficiency and profitability over the longer term.
- Net Income (Loss)
- Exhibited high volatility, with strong profits early on, a pronounced loss in early 2022, followed by a robust recovery and growth trend through 2025.
- Total Assets
- Displayed consistent growth without interruption, nearly doubling from 2021 to 2025.
- Return on Assets (ROA)
- Experienced a decline into negative territory in 2022, succeeded by a sustained recovery and improvement to above 10% by 2025.
Overall, the data suggest the company navigated a challenging interim period characterized by reduced profitability and losses in 2022, likely impacting short-term returns. However, the steady increase in total assets combined with the recovery and strengthening of net income and ROA indicates a successful turnaround and improved operational efficiency in the succeeding years.