Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
Amazon.com Inc., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 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).
The profitability ratios demonstrate a consistent upward trend over the observed period, with notable improvements in operating and net profit margins, as well as returns on equity and assets. Initial values indicate a period of lower profitability, followed by substantial gains, particularly from 2022 to 2025.
- Gross Profit Margin
- The gross profit margin exhibits a steady and consistent increase throughout the period, rising from 42.14% in March 2022 to 50.29% in December 2025. This suggests improving efficiency in production or procurement, or a shift towards higher-margin products and services. The rate of increase appears relatively stable, indicating a sustained improvement in this area.
- Operating Profit Margin
- The operating profit margin shows a more volatile, but ultimately positive, trajectory. Starting at 4.12% in March 2022, it experienced a decline before beginning a significant ascent, reaching 11.16% by December 2025. The most substantial gains occurred between September 2022 and December 2024, indicating successful cost management or increased operational efficiency. A slight decrease is observed in the final quarter.
- Net Profit Margin
- The net profit margin mirrors the trend of the operating profit margin, with an initial dip into negative territory in December 2022 (-0.53%) followed by a strong recovery. By December 2025, the net profit margin reached 10.83%, representing a substantial improvement from earlier periods. This indicates that improvements in operational efficiency and cost control are translating into higher net income.
- Return on Equity (ROE)
- Return on equity demonstrates a significant recovery and growth pattern. Beginning at 15.98% in March 2022, it declined before increasing substantially to 21.56% in March 2025, and settling at 18.89% in December 2025. This suggests increasing effectiveness in utilizing shareholder equity to generate profits. The fluctuations suggest sensitivity to changes in net income and equity levels.
- Return on Assets (ROA)
- The return on assets follows a similar pattern to ROE, increasing from 5.21% in March 2022 to 10.51% in September 2025, before decreasing slightly to 9.49% in December 2025. This indicates improved efficiency in utilizing assets to generate earnings. The trend suggests effective asset management and investment strategies.
Overall, the observed trends indicate a strengthening financial performance. The consistent improvement in profitability ratios suggests successful strategic initiatives and effective management of costs and resources. While a slight leveling off or decrease is noted in the most recent quarter for some ratios, the overall trajectory remains positive.
Return on Sales
Return on Investment
Gross Profit Margin
Amazon.com Inc., gross profit margin calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Gross profit | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Gross profit margin = 100
× (Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit margin demonstrates a consistent upward trend over the observed period, spanning from March 31, 2022, to December 31, 2025. This indicates an increasing efficiency in converting net sales into gross profit.
- Overall Trend
- The gross profit margin began at 42.14% in March 2022 and progressively increased to 50.29% by December 2025. This represents a substantial improvement of approximately 8.15 percentage points over the entire period.
- Phased Increases
- The rate of increase was not uniform throughout the period. From March 2022 to December 2022, the margin increased by 1.67 percentage points, reaching 43.81%. A similar rate of increase was observed between December 2022 and December 2023, with a gain of 3.17 percentage points, culminating in a margin of 46.98%. The period from December 2023 to December 2025 saw the most significant acceleration, with an increase of 3.31 percentage points.
- Quarterly Fluctuations
- While the overall trend is upward, minor quarterly fluctuations are present. For example, the margin experienced a slight decrease from June 30, 2024 (48.04%) to September 30, 2024 (48.41%), before resuming its upward trajectory. These fluctuations are relatively small compared to the overall growth.
- Recent Performance
- The most recent quarters show continued growth in the gross profit margin. The margin increased from 49.16% in March 2025 to 49.61% in June 2025, then to 50.05% in September 2025, and finally reached 50.29% in December 2025. This suggests that the factors driving margin improvement are still actively influencing performance.
The consistent increase in gross profit margin suggests effective cost management, improved pricing strategies, or a shift towards higher-margin products or services. Further investigation into the underlying drivers of these changes would be beneficial.
Operating Profit Margin
Amazon.com Inc., operating profit margin calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating income | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally increasing trend over the observed period, although with notable fluctuations. Initial values indicated a margin of 4.12% in March 2022, followed by a decline through the remainder of the year, reaching a low of 2.38% in December 2022. A significant upward trajectory commenced in early 2023, with the margin steadily increasing each quarter, culminating in a peak of 10.75% by December 2023.
This positive momentum continued into 2024, with the operating profit margin reaching 8.02% in March, 9.00% in June, 9.77% in September, and 10.75% in December. The first half of 2025 showed a slight fluctuation, with a margin of 11.02% in March, 11.37% in June, and a decrease to 11.02% in September. The period concluded with a margin of 11.16% in December 2025.
- Overall Trend
- The overall trend demonstrates a substantial improvement in operating profitability. The margin more than tripled from its low point in December 2022 to its value in December 2025. This suggests increasing operational efficiency or improved pricing strategies.
- Short-Term Fluctuations
- Despite the overall upward trend, quarterly variations were present. The decline observed throughout 2022 could be attributed to increased operating costs, shifts in sales mix, or macroeconomic factors. The subsequent recovery in 2023 and 2024 indicates successful mitigation of these challenges.
- Recent Performance
- The operating profit margin in the most recent quarters (March-December 2025) remained relatively stable, fluctuating within a narrow range. This suggests a period of consolidation after the rapid growth experienced in the preceding periods. The slight increase in December 2025 could indicate a positive seasonal effect or successful implementation of new initiatives.
- Relationship to Net Sales
- While the operating profit margin is the primary focus, it is important to note that net sales also experienced fluctuations. The increase in operating profit margin was not solely driven by sales growth, as evidenced by the periods where sales decreased while the margin increased. This suggests that cost control and operational improvements played a significant role.
Net Profit Margin
Amazon.com Inc., net profit margin calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Net profit margin = 100
× (Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025
+ Net income (loss)Q1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibited significant fluctuations over the observed period, ultimately demonstrating a strong upward trend. Initial quarters showed relatively modest margins, followed by a loss, before experiencing substantial and consistent growth.
- Initial Period (Mar 31, 2022 - Dec 31, 2022)
- The net profit margin began at 4.48% in March 2022, declining to 2.39% by June 2022 and further to 2.25% by September 2022. A notable shift occurred in December 2022, with the margin turning negative at -0.53%, indicating a net loss during that quarter.
- Recovery and Growth (Mar 31, 2023 - Dec 31, 2024)
- A recovery commenced in March 2023, with the net profit margin rising to 0.82%. Subsequent quarters showed consistent improvement, reaching 2.43% in June 2023, 3.62% in September 2023, and 5.29% in December 2023. This positive momentum continued into 2024, with the margin increasing to 6.38% in March, 7.35% in June, 8.04% in September, and 9.29% in December.
- Recent Performance (Mar 31, 2025 - Dec 31, 2025)
- The upward trend persisted into 2025. The net profit margin reached 10.14% in March, 10.54% in June, 11.06% in September, and concluded the period at 10.83% in December. While the rate of increase slowed slightly in the latter half of 2025, the margin remained at a historically high level.
- Overall Trend
- The overall trend indicates a substantial improvement in profitability. The company transitioned from experiencing a net loss in late 2022 to achieving a net profit margin exceeding 10% by the end of 2025. This represents a significant positive shift in financial performance.
The consistent growth in net profit margin suggests effective cost management, increased revenue generation, or a combination of both. Further investigation into the underlying drivers of these changes would be beneficial.
Return on Equity (ROE)
Amazon.com Inc., ROE calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
ROE = 100
× (Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025
+ Net income (loss)Q1 2025)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
Return on Equity (ROE) exhibited considerable fluctuation over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Initial values demonstrated a decline followed by a sustained upward trajectory.
- Initial Decline and Recovery (Mar 31, 2022 – Dec 31, 2022)
- The ROE began at 15.98% in March 2022, then decreased significantly, reaching a low of -1.86% by December 2022. This initial decline coincided with periods of net loss. A recovery commenced in the latter part of 2022, with ROE turning positive.
- Growth Phase (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 through December 2023, the ROE experienced consistent growth, rising from 2.78% to 15.07%. This period was characterized by increasing net income and stockholders’ equity. The rate of increase accelerated in the latter half of the year.
- Peak and Stabilization (Mar 31, 2024 – Dec 31, 2025)
- The ROE peaked at 21.56% in March 2025. Prior to this, it demonstrated continued growth, reaching 17.39% in March 2024, 18.79% in June 2024, 19.24% in September 2024, and 20.72% in December 2024. A slight decrease was observed in the final quarter of 2025, with the ROE settling at 18.89%.
The observed trend suggests a strengthening of the company’s ability to generate profit from shareholders’ investments. The substantial increase in ROE from 2023 onwards appears correlated with both improved net income and a growing equity base. While fluctuations occurred, the overall pattern indicates a positive development in profitability relative to equity.
- Net Income and ROE Correlation
- Periods of net loss, such as in the first half of 2022, directly impacted ROE, resulting in negative values. Conversely, increasing net income from the second half of 2022 through 2025 consistently drove ROE upward. This demonstrates a strong relationship between profitability and returns to equity holders.
- Stockholders’ Equity and ROE
- Stockholders’ equity steadily increased throughout the period. While this contributed to the overall increase in ROE, the primary driver appears to be the improvement in net income. The growth in equity provided a larger base upon which to generate returns.
Return on Assets (ROA)
Amazon.com Inc., ROA calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
ROA = 100
× (Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025
+ Net income (loss)Q1 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a volatile pattern over the observed period, ultimately demonstrating a significant upward trend. Initial values indicated a relatively strong ROA, followed by a period of decline, and then a substantial recovery and continued growth.
- Initial Performance (Mar 31, 2022 - Dec 31, 2022)
- The ROA began at 5.21% in March 2022, decreasing to 2.77% by June 2022 and further to 2.64% by September 2022. A notable decline occurred in December 2022, resulting in a negative ROA of -0.59%.
- Recovery and Growth (Mar 31, 2023 - Dec 31, 2024)
- A recovery commenced in March 2023, with the ROA rising to 0.92%. This positive momentum continued through subsequent quarters, reaching 2.74% in June 2023, 4.12% in September 2023, and 5.76% in December 2023. The ROA continued its ascent, reaching 7.10% in March 2024, 8.01% in June 2024, 8.53% in September 2024, and 9.48% in December 2024.
- Peak and Stabilization (Mar 31, 2025 - Dec 31, 2025)
- The ROA peaked at 10.25% in March 2025 and remained relatively stable at 10.35% in June 2025, and 10.51% in September 2025. A slight decrease was observed in December 2025, with the ROA settling at 9.49%.
- Relationship to Net Income and Total Assets
- The fluctuations in ROA correlate with changes in net income and total assets. The negative ROA in December 2022 coincided with a net loss. The subsequent increases in ROA align with periods of positive and increasing net income, coupled with growth in total assets. The increasing ROA suggests that the company is becoming more efficient in utilizing its assets to generate profit.
Overall, the ROA demonstrates a strong recovery from a period of negative performance, culminating in a sustained period of growth and reaching a peak towards the end of the analyzed timeframe. The trend suggests improving profitability relative to the company’s asset base.