Analysis of Reportable Segments
Amazon.com Inc. operates in 3 segments: North America; International; and AWS.
Segment Profit Margin
Amazon.com Inc., profit margin by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | 6.44% | 4.22% | -0.90% | 2.60% | 3.66% |
| International | 2.65% | -2.02% | -6.56% | -0.72% | 0.69% |
| AWS | 37.04% | 27.14% | 28.52% | 29.79% | 29.82% |
Based on: 10-K (reporting date: 2024-12-31), 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).
- North America Segment Profit Margin
- The profit margin for the North America segment exhibits notable fluctuations over the analyzed periods. Initially, it decreased from 3.66% in 2020 to 2.6% in 2021, followed by a decline into negative territory at -0.9% in 2022. However, the subsequent years show a marked recovery, with margins increasing to 4.22% in 2023 and further to 6.44% in 2024. This pattern indicates a temporary downturn in 2022 but a robust rebound and improvement in profitability in the most recent years.
- International Segment Profit Margin
- The international segment demonstrated more volatility and sustained challenges during the analysis period. Beginning with a low positive margin of 0.69% in 2020, it turned negative in 2021, declining to -0.72%, and worsened further to -6.56% in 2022. A slight recovery was observed in 2023 with a margin of -2.02%, but it remained negative. By 2024, the margin improved to a positive 2.65%, suggesting efforts toward profitability are beginning to materialize. Overall, this segment faced significant pressure, particularly in 2021 and 2022, before showing tentative improvement.
- AWS Segment Profit Margin
- The AWS segment maintained a substantially higher profit margin relative to the other segments throughout the given periods. Margins slightly declined from 29.82% in 2020 to 29.79% in 2021 and then experienced a gradual reduction through 2022 and 2023, reaching 28.52% and 27.14%, respectively. Despite this moderation, a significant margin increase to 37.04% occurred in 2024, signaling a strong enhancement in profitability for this segment. This trend indicates consistent high profitability for AWS, with an especially pronounced improvement in the latest year.
Segment Profit Margin: North America
Amazon.com Inc.; North America; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 24,967) | 14,877) | (2,847) | 7,271) | 8,651) |
| Net sales | 387,497) | 352,828) | 315,880) | 279,833) | 236,282) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 6.44% | 4.22% | -0.90% | 2.60% | 3.66% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 24,967 ÷ 387,497 = 6.44%
The financial results for the North America segment demonstrate several notable trends over the five-year period ending in 2024.
- Net Sales
- There is a consistent upward trajectory in net sales from 2020 through 2024. The segment's net sales grew from $236,282 million in 2020 to $387,497 million in 2024, indicating robust revenue expansion. This growth reflects an increasing market demand or an expansion in service offerings and is indicative of a positive sales trend.
- Operating Income (Loss)
- Operating income exhibits a more volatile pattern across the analyzed years. While the segment earned $8,651 million in operating income in 2020, it declined to $7,271 million in 2021 and experienced an operating loss of $2,847 million in 2022. However, there was a strong recovery beginning in 2023, with operating income rising sharply to $14,877 million and further increasing to $24,967 million in 2024. This fluctuation suggests challenges in the middle of the period but a subsequent successful operational turnaround and improved profitability.
- Segment Profit Margin
- The segment profit margin aligns with the trends observed in operating income. The margin decreased from 3.66% in 2020 to 2.6% in 2021, then turned negative at -0.9% in 2022, reflecting the operating loss during that year. In 2023 and 2024, the profit margin improved markedly to 4.22% and 6.44%, respectively. This improvement indicates enhanced efficiency, cost control, or pricing power contributing to higher profitability margins towards the end of the period.
Overall, the North America segment experienced solid sales growth accompanied by fluctuating profitability that bottomed out in 2022 but showed strong recovery and expansion in subsequent years. The improving profit margins and rising operating income in the later years suggest that operational strategies or market conditions favorably impacted financial performance after the period of loss.
Segment Profit Margin: International
Amazon.com Inc.; International; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 3,792) | (2,656) | (7,746) | (924) | 717) |
| Net sales | 142,906) | 131,200) | 118,007) | 127,787) | 104,412) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 2.65% | -2.02% | -6.56% | -0.72% | 0.69% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 3,792 ÷ 142,906 = 2.65%
- Net Sales
- Over the five-year period, net sales in the International segment exhibited an overall upward trend. Starting at $104,412 million in 2020, sales increased sharply to $127,787 million in 2021. However, there was a decline to $118,007 million in 2022, followed by a recovery and steady growth in 2023 and 2024, reaching $142,906 million by the end of 2024. This pattern suggests periodic fluctuations but generally reflects expanding revenue generation internationally.
- Operating Income (Loss)
- The operating income displayed significant volatility throughout the period. The segment posted a positive operating income of $717 million in 2020, which turned into a loss of $924 million in 2021. This negative trend intensified sharply in 2022 with a loss of $7,746 million. In 2023, the loss reduced considerably to $2,656 million, and by 2024, the segment returned to profitability with an operating income of $3,792 million. The fluctuations indicate challenges in managing costs and operational efficiencies, with a notable recovery in the final year.
- Segment Profit Margin
- The segment profit margin mirrored the trends in operating income with an overall decline during the initial years, followed by a gradual recovery. Beginning with a modest positive margin of 0.69% in 2020, it turned negative at -0.72% in 2021 and deteriorated further to -6.56% in 2022. Improvements were observed in 2023 as the margin climbed to -2.02%, and by 2024, it returned to a positive 2.65%. This evolution indicates that despite initial setbacks, the segment enhanced its profitability relative to sales towards the end of the period.
- Summary
- In summary, the International segment experienced growth in net sales over the five years, albeit with some fluctuations. Operating income and profit margins suffered significant declines after 2020, hitting a low point in 2022 before showing meaningful recovery in 2023 and turning positive in 2024. These trends suggest that while sales expanded, the segment faced challenges impacting profitability but managed to improve cost control or operational efficiency in the later years, leading to a restored contribution to overall earnings by the end of the period.
Segment Profit Margin: AWS
Amazon.com Inc.; AWS; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 39,834) | 24,631) | 22,841) | 18,532) | 13,531) |
| Net sales | 107,556) | 90,757) | 80,096) | 62,202) | 45,370) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 37.04% | 27.14% | 28.52% | 29.79% | 29.82% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 39,834 ÷ 107,556 = 37.04%
The data reveals the financial performance of the AWS segment over five consecutive years. A consistent growth pattern is evident across all key financial metrics.
- Operating Income (Loss)
- Operating income demonstrated a steady increase from US$13,531 million in 2020 to US$39,834 million in 2024. This represents nearly a threefold growth over the period, with a notable acceleration in the final year, where operating income increased by approximately 61.7% from 2023 to 2024.
- Net Sales
- Net sales exhibited a robust upward trajectory, rising from US$45,370 million in 2020 to US$107,556 million in 2024. The sales growth shows a consistent year-over-year increase, with the largest annual increment occurring between 2023 and 2024, approximately 18.5% higher than the prior year.
- Segment Profit Margin
- The segment profit margin percentage shows a slight downward trend from 29.82% in 2020 to 27.14% in 2023, suggesting a gradual reduction in profitability margin relative to sales during the initial four-year period. However, in 2024, there is a significant improvement, with the margin rising sharply to 37.04%, indicating enhanced operational efficiency or a favorable shift in cost structure.
Overall, the AWS segment exhibits strong growth in both revenue and operating income, with margins recovering substantially in the final year after a period of gradual decline. This suggests effective management of growth and cost factors, culminating in improved profitability.
Segment Return on Assets (Segment ROA)
Amazon.com Inc., ROA by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | 11.88% | 7.59% | -1.54% | 4.51% | 7.98% |
| International | 5.46% | -3.81% | -11.98% | -1.59% | 1.70% |
| AWS | 25.54% | 22.69% | 25.81% | 29.03% | 28.44% |
Based on: 10-K (reporting date: 2024-12-31), 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).
- North America Segment ROA
- The ROA for the North America segment demonstrates significant fluctuation over the analyzed periods. Beginning at a robust 7.98% in 2020, it sharply declined to 4.51% in 2021 and further deteriorated to a negative return of -1.54% in 2022. However, this segment shows a recovery trend in subsequent years, rising back to a positive 7.59% in 2023 and increasing further to 11.88% in 2024. This indicates a notable rebound and improvement in asset utilization and profitability within the North American market.
- International Segment ROA
- The International segment displays a more volatile and generally negative ROA performance during the reported years. Starting at a modest 1.7% in 2020, the ROA fell below zero in 2021 to -1.59%, continuing to decline further to -11.98% in 2022, indicating significant inefficiencies or losses in this region. The segment experienced some recovery in 2023 with an improved but still negative ROA of -3.81%, followed by a positive turnaround in 2024 with an ROA of 5.46%. Despite this positive shift, the segment remains less stable compared to others.
- AWS Segment ROA
- The AWS segment maintains the highest ROA percentages throughout the periods, demonstrating consistent strong profitability and asset efficiency. Starting at a peak of 28.44% in 2020, the ROA peaked slightly higher at 29.03% in 2021. This was followed by a gradual decline to 25.81% in 2022 and 22.69% in 2023, though the ROA improved again to 25.54% in 2024. Despite the decreases, AWS continues to be the most profitable segment, with ROA figures substantially above those of other business areas.
- Summary
- The overall trend reveals that AWS consistently outperforms the other segments in terms of ROA, maintaining double-digit percentages indicative of strong returns. The North America segment experienced a dip into negative territory but has shown a strong recovery, suggesting effective strategic adjustments or market conditions favoring improvement. In contrast, the International segment has encountered prolonged challenges, with negative ROA for several years before an eventual return to profitability in the final period. This pattern underscores varying regional performance dynamics and highlights AWS as the primary driver of asset efficiency and profitability.
Segment ROA: North America
Amazon.com Inc.; North America; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 24,967) | 14,877) | (2,847) | 7,271) | 8,651) |
| Assets | 210,120) | 196,029) | 185,268) | 161,255) | 108,405) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 11.88% | 7.59% | -1.54% | 4.51% | 7.98% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 24,967 ÷ 210,120 = 11.88%
The analysis of the North America segment data reveals several notable financial trends over the five-year period from 2020 to 2024.
- Operating Income (Loss)
- Operating income experienced volatility throughout the period. It started at a strong positive value of 8,651 million USD in 2020, but declined to 7,271 million USD in 2021. In 2022, the segment reported a loss of 2,847 million USD, indicating a significant downturn. However, the segment rebounded sharply in subsequent years, with operating income rising to 14,877 million USD in 2023 and further increasing to 24,967 million USD in 2024. This recovery suggests operational improvements or favorable market conditions in later years.
- Assets
- The asset base of the segment showed consistent growth throughout the period. Beginning at 108,405 million USD in 2020, assets increased steadily each year, reaching 161,255 million USD in 2021, 185,268 million USD in 2022, 196,029 million USD in 2023, and 210,120 million USD in 2024. This continuous increase indicates ongoing investment in resources and possibly expansion efforts within the segment.
- Segment Return on Assets (ROA)
- The segment Return on Assets followed a fluctuating trend that corresponds with the operating income results. ROA started at 7.98% in 2020 but declined sharply to 4.51% in 2021. In 2022, ROA turned negative at -1.54%, reflecting the operating loss in that year. The profitability metric then recovered to 7.59% in 2023 and improved markedly to 11.88% in 2024. This improvement in ROA indicates enhanced asset utilization and improved profitability in recent years.
In summary, the North America segment demonstrated a temporary setback in 2022 with negative operating income and ROA; however, the segment recovered strongly in 2023 and 2024, showing increased profitability and effective asset management. The asset base expanded continuously, supporting growth and operational capacity enhancement throughout the analyzed period.
Segment ROA: International
Amazon.com Inc.; International; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 3,792) | (2,656) | (7,746) | (924) | 717) |
| Assets | 69,487) | 69,718) | 64,666) | 57,983) | 42,212) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 5.46% | -3.81% | -11.98% | -1.59% | 1.70% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 3,792 ÷ 69,487 = 5.46%
The analysis of the international segment reveals significant fluctuations in operating income, asset base, and segment return on assets (ROA) over the five-year period.
- Operating Income (Loss)
- Initial positive operating income in 2020 at 717 million USD was followed by a steep decline to losses in 2021 and 2022, reaching the largest loss of 7,746 million USD in 2022. A partial recovery was observed in 2023, with losses decreasing to 2,656 million USD, and a return to positive operating income in 2024 at 3,792 million USD. This indicates a period of operational challenges followed by a turnaround in profitability toward the end of the period analyzed.
- Assets
- The asset base showed consistent growth from 42,212 million USD in 2020 to a peak of 69,718 million USD in 2023, indicating expanding investment or acquisition activity. There was a slight decrease in assets in 2024 to 69,487 million USD, suggesting stabilization or minor divestitures.
- Segment Return on Assets (ROA)
- ROA mirrored the operating income trend, beginning with a positive 1.7% in 2020 before turning negative in 2021 (-1.59%) and sharply deteriorating in 2022 to -11.98%. Improvement occurred in 2023, with ROA improving to -3.81%, and finally turning positive again in 2024 at 5.46%. This reflects the segment's fluctuating profitability efficiency relative to its asset base over time.
Segment ROA: AWS
Amazon.com Inc.; AWS; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 39,834) | 24,631) | 22,841) | 18,532) | 13,531) |
| Assets | 155,953) | 108,533) | 88,491) | 63,835) | 47,574) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 25.54% | 22.69% | 25.81% | 29.03% | 28.44% |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 39,834 ÷ 155,953 = 25.54%
The segment data for AWS demonstrates a consistent growth trajectory in key financial metrics over the observed period from 2020 to 2024. There is a marked upward trend in operating income, which increases from $13,531 million in 2020 to $39,834 million in 2024. This represents a near threefold increase, indicating significant expansion in profitability.
Assets have also shown substantial growth, starting at $47,574 million in 2020 and reaching $155,953 million by 2024. This growth indicates considerable investment in resources or expansion of the segment’s operational base over the years.
The segment Return on Assets (ROA) reveals a fluctuating trend. Initially, ROA rises slightly from 28.44% in 2020 to a peak of 29.03% in 2021. However, it declines over the next two years, reaching a low of 22.69% in 2023, before recovering somewhat to 25.54% in 2024. Despite this variability, ROA remains at a solid level, indicating continued effective utilization of assets in generating profits, although the declining trend from 2021 to 2023 could suggest increasing asset investment relative to operating income growth during that period.
- Operating Income
- Exhibits steady and significant increase over the five-year period, reflecting strong profit growth and operational scaling.
- Assets
- Consistently increases, suggesting ongoing capital deployment and expansion within the segment.
- Segment ROA
- Shows minor volatility, with an initial increase followed by a decrease and partial recovery, indicating some changes in efficiency of asset usage over time.
Overall, the data portray a segment that is expanding rapidly with increasing profitability and asset base, although with some variations in asset efficiency over the years analyzed.
Segment Asset Turnover
Amazon.com Inc., asset turnover by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | 1.84 | 1.80 | 1.70 | 1.74 | 2.18 |
| International | 2.06 | 1.88 | 1.82 | 2.20 | 2.47 |
| AWS | 0.69 | 0.84 | 0.91 | 0.97 | 0.95 |
Based on: 10-K (reporting date: 2024-12-31), 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).
- North America Segment Asset Turnover
- The North America asset turnover ratio exhibited a downward trend from 2.18 in 2020 to 1.7 in 2022, indicating a reduction in the efficiency of asset utilization during this period. However, this ratio experienced a moderate recovery in the following years, rising to 1.8 in 2023 and further to 1.84 in 2024, suggesting an improvement in generating sales from assets in this region after the initial decline.
- International Segment Asset Turnover
- The International segment showed a consistent decline from 2.47 in 2020 to 1.82 in 2022, reflecting a notable decrease in asset turnover efficiency over these years. Starting in 2023, the ratio began to increase, reaching 1.88, and further improving to 2.06 by 2024. This recovery indicates a renewed effectiveness in asset utilization internationally, although it has not returned to the peak level observed in 2020.
- AWS Segment Asset Turnover
- The AWS segment demonstrated a relatively stable but slightly declining asset turnover ratio from 0.95 in 2020 to 0.91 in 2022, followed by a more pronounced decrease in subsequent years. The ratio dropped to 0.84 in 2023 and significantly declined to 0.69 in 2024. This trend points to a diminishing efficiency in using assets to generate revenue within the AWS segment, raising potential concerns about asset productivity or increased asset base relative to sales in this business unit.
Segment Asset Turnover: North America
Amazon.com Inc.; North America; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 387,497) | 352,828) | 315,880) | 279,833) | 236,282) |
| Assets | 210,120) | 196,029) | 185,268) | 161,255) | 108,405) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.84 | 1.80 | 1.70 | 1.74 | 2.18 |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment asset turnover = Net sales ÷ Assets
= 387,497 ÷ 210,120 = 1.84
The analysis of the North America reportable segment over the five-year period reveals noteworthy trends in net sales, assets, and asset turnover efficiency.
- Net Sales
- There is a consistent and substantial increase in net sales from US$236,282 million in 2020 to US$387,497 million in 2024. This represents a growth of approximately 64% over the five years, indicating strong revenue expansion within the segment. The year-on-year growth persists each year, though the rate of increase slightly moderates in the latter years.
- Assets
- The asset base has expanded significantly from US$108,405 million in 2020 to US$210,120 million in 2024, nearly doubling over the period. This growth in assets suggests ongoing investments and resource accumulation to support business operations and growth initiatives in the region.
- Segment Asset Turnover
- The asset turnover ratio, which measures the efficiency of asset use in generating sales, shows a declining trend from 2.18 in 2020 to 1.70 in 2022, pointing to reduced efficiency during these years. However, it slightly recovers to 1.80 in 2023 and further to 1.84 in 2024. Despite the recovery, the ratio remains below the 2020 level, indicating that while sales have increased, asset growth has outpaced sales growth somewhat, leading to less efficient use of assets compared to the beginning of the period.
In summary, the segment demonstrates robust revenue enhancement supported by substantial asset growth. However, the slowdown in asset turnover efficiency, with a partial rebound in the last two years, suggests that asset deployment has become somewhat less effective in producing sales relative to the earlier period.
Segment Asset Turnover: International
Amazon.com Inc.; International; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 142,906) | 131,200) | 118,007) | 127,787) | 104,412) |
| Assets | 69,487) | 69,718) | 64,666) | 57,983) | 42,212) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 2.06 | 1.88 | 1.82 | 2.20 | 2.47 |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment asset turnover = Net sales ÷ Assets
= 142,906 ÷ 69,487 = 2.06
- Net Sales
- Net sales experienced growth from 104,412 million US dollars in 2020 to 142,906 million US dollars in 2024, indicating a positive sales trend over the five-year period. Notably, there was a slight decline in 2022, where net sales decreased to 118,007 million from the previous year's 127,787 million, before recovering in subsequent years.
- Assets
- Assets showed a steady increase from 42,212 million US dollars in 2020 to 69,487 million US dollars in 2024. The most significant increase occurred between 2020 and 2021, with asset growth of approximately 37%. After that, asset growth continued at a slower but consistent pace.
- Segment Asset Turnover
- The segment asset turnover ratio displayed a declining trend from 2.47 in 2020 to a low of 1.82 in 2022, reflecting decreasing efficiency in utilizing assets to generate sales during this period. However, from 2022 onwards, this ratio improved, reaching 2.06 by 2024, suggesting a recovery in asset utilization effectiveness.
- Overall Insights
- The data indicates a general increase in net sales and assets over the five-year period, with a temporary dip in sales and asset turnover ratio in 2022. The improvement in asset turnover after 2022 suggests enhanced operational efficiency. The growth in total assets coupled with increasing net sales implies expansion, while fluctuations in asset turnover highlight changes in asset management efficiency across the years.
Segment Asset Turnover: AWS
Amazon.com Inc.; AWS; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 107,556) | 90,757) | 80,096) | 62,202) | 45,370) |
| Assets | 155,953) | 108,533) | 88,491) | 63,835) | 47,574) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.69 | 0.84 | 0.91 | 0.97 | 0.95 |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment asset turnover = Net sales ÷ Assets
= 107,556 ÷ 155,953 = 0.69
The analysis of the AWS segment data over the reported periods reveals notable growth in the financial metrics accompanied by shifts in asset utilization efficiency.
- Net Sales
- There is a consistent and strong upward trend in net sales, increasing from $45,370 million in 2020 to $107,556 million in 2024. This represents more than a twofold increase over five years, indicating robust revenue growth within the segment.
- Assets
- The total assets associated with the segment also show substantial growth, rising from $47,574 million in 2020 to $155,953 million in 2024. This near tripling of assets suggests significant investment and expansion in the segment's resources and infrastructure.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures efficiency in using assets to generate sales, exhibits a decreasing trend. It started at 0.95 in 2020, slightly increased to 0.97 in 2021, then declined steadily to 0.69 by 2024. Despite increasing sales, the decline in asset turnover ratio indicates that asset growth outpaces sales growth, implying reduced efficiency in asset utilization over the later years.
In summary, while the segment demonstrates strong growth in both net sales and asset base, the declining asset turnover ratio highlights a potential area for review regarding how effectively assets are employed to support revenue generation. This could be a result of strategic investments in capacity or infrastructure that have not yet fully translated into proportional revenue increases.
Segment Capital Expenditures to Depreciation
Amazon.com Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | 1.70 | 1.28 | 2.05 | 4.05 | 4.65 |
| International | 1.49 | 1.03 | 1.93 | 3.39 | 3.64 |
| AWS | 4.00 | 1.98 | 2.81 | 2.07 | 2.17 |
Based on: 10-K (reporting date: 2024-12-31), 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).
- North America Segment
- The capital expenditures to depreciation ratio exhibits a clear declining trend from 2020 to 2023, decreasing from 4.65 to 1.28. This indicates a reduction in capital investment relative to the depreciation expense during this period. However, in 2024, the ratio increases to 1.7, suggesting a renewed emphasis on capital expenditures or a deceleration in depreciation growth relative to prior years.
- International Segment
- The international segment shows a similar downward trajectory as North America, with the ratio falling from 3.64 in 2020 to a low of 1.03 in 2023. The steep decline points to a considerable decrease in capital expenditures or an increase in depreciation over these years. The slight rebound to 1.49 in 2024 may reflect increased investment activities or adjustments in asset depreciation patterns.
- AWS Segment
- The AWS segment presents a different pattern, with fluctuations over the period. The ratio starts at 2.17 in 2020, dips marginally to 2.07 in 2021, then rises sharply to 2.81 in 2022. A notable decline to 1.98 occurs in 2023, followed by a significant increase to 4.0 in 2024. This volatility implies variable capital expenditure decisions relative to depreciation, with 2024 marking a substantial increase in investment relative to asset consumption or depreciation.
- Summary of Trends
- Overall, both North America and International segments show a consistent decline in capital expenditure relative to depreciation from 2020 through 2023, followed by a moderate recovery in 2024. In contrast, the AWS segment displays more volatility with a sharp increase in the capital expenditures to depreciation ratio in 2024, surpassing all previous years. This suggests a strategic focus on capital investment in AWS, potentially reflecting growth initiatives or increased asset acquisitions. The differences across segments highlight varied investment strategies and asset management approaches within the business units.
Segment Capital Expenditures to Depreciation: North America
Amazon.com Inc.; North America; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net additions to property and equipment | 24,348) | 17,529) | 23,682) | 37,397) | 29,889) |
| Depreciation and amortization expense on property and equipment | 14,285) | 13,678) | 11,565) | 9,234) | 6,421) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.70 | 1.28 | 2.05 | 4.05 | 4.65 |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment capital expenditures to depreciation = Net additions to property and equipment ÷ Depreciation and amortization expense on property and equipment
= 24,348 ÷ 14,285 = 1.70
- Net additions to property and equipment
- The data shows a notable fluctuation in net additions to property and equipment over the five-year span. In 2021, there was an increase from the 2020 level, reaching the highest point at approximately $37.4 billion. This was followed by a sharp decline in 2022 to around $23.7 billion, further falling to its lowest in 2023 at about $17.5 billion. The figure rebounded in 2024 to approximately $24.3 billion, indicating a partial recovery in capital investment levels.
- Depreciation and amortization expense on property and equipment
- The depreciation and amortization expense exhibits a consistent upward trend throughout the period. Starting at roughly $6.4 billion in 2020, this expense steadily increased each year, reaching about $14.3 billion by 2024. This rise implies a growing base of depreciable assets, reflecting past capital expenditures coming into the expense recognition phase.
- Segment capital expenditures to depreciation ratio
- This ratio indicates the relationship between capital expenditures and depreciation expenses. It started at a high level of 4.65 in 2020, showing capital expenditure significantly exceeded depreciation. The ratio decreased sharply over the next years, falling to 4.05 in 2021 and then dropping to much lower levels of 2.05 in 2022 and a low of 1.28 in 2023. In 2024, the ratio increased modestly to 1.7. The downward trend indicates that capital investment slowed markedly relative to the aging asset base, but the slight rise in 2024 suggests some resumption of investment activity.
Segment Capital Expenditures to Depreciation: International
Amazon.com Inc.; International; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net additions to property and equipment | 6,643) | 4,144) | 6,711) | 10,259) | 8,072) |
| Depreciation and amortization expense on property and equipment | 4,462) | 4,016) | 3,483) | 3,022) | 2,215) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.49 | 1.03 | 1.93 | 3.39 | 3.64 |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment capital expenditures to depreciation = Net additions to property and equipment ÷ Depreciation and amortization expense on property and equipment
= 6,643 ÷ 4,462 = 1.49
- Net Additions to Property and Equipment
- The net additions to property and equipment show a fluctuating trend over the five-year period. Starting at $8,072 million in 2020, there was a significant increase to $10,259 million in 2021, indicating a strong investment phase. However, this value decreased notably to $6,711 million in 2022 and further dropped to a low of $4,144 million in 2023. In 2024, the figure rebounded to $6,643 million, suggesting a partial recovery in capital investment.
- Depreciation and Amortization Expense on Property and Equipment
- The depreciation and amortization expense has exhibited a consistent upward trend throughout the period. From $2,215 million in 2020, the expense increased annually, reaching $4,462 million in 2024. This steady rise indicates increasing capital base and aging of assets, leading to higher periodic depreciation costs.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation started very high at 3.64 in 2020, reflecting capital spending that considerably outpaced the wear and tear of existing assets. This ratio declined steadily over the years, falling to 1.49 by 2024. The decrease suggests a moderation in capital expenditures relative to asset depreciation, highlighting a shift towards maintaining rather than expanding asset base. The near parity ratio around 2023 (1.03) indicates a balance between new investments and asset consumption during that year.
Segment Capital Expenditures to Depreciation: AWS
Amazon.com Inc.; AWS; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net additions to property and equipment | 53,267) | 24,843) | 27,755) | 22,047) | 16,530) |
| Depreciation and amortization expense on property and equipment | 13,320) | 12,531) | 9,876) | 10,653) | 7,603) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 4.00 | 1.98 | 2.81 | 2.07 | 2.17 |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Segment capital expenditures to depreciation = Net additions to property and equipment ÷ Depreciation and amortization expense on property and equipment
= 53,267 ÷ 13,320 = 4.00
The AWS segment exhibits notable fluctuations in its capital investment activities and associated expenses over the five-year period from 2020 to 2024.
- Net additions to property and equipment
- There is a general upward trend with some variability. Starting at 16,530 million US dollars in 2020, the figure increased markedly to 22,047 million in 2021 and further to 27,755 million in 2022. A decline is observed in 2023 where net additions dropped to 24,843 million. However, in 2024 there is a significant surge to 53,267 million, almost doubling the previous year’s figure, indicating substantial expansion or investment in property and equipment.
- Depreciation and amortization expense on property and equipment
- This expense rose sharply from 7,603 million in 2020 to a peak of 10,653 million in 2021. Thereafter, a decrease is noted in 2022 to 9,876 million, followed by an increase again to 12,531 million in 2023. In 2024, the expense continues to rise but at a more moderate pace reaching 13,320 million. The fluctuations in depreciation and amortization are less volatile compared to capital additions but generally trend upward, reflecting ongoing investments and asset utilization.
- Segment capital expenditures to depreciation ratio
- This ratio illustrates the relationship between capital spending and depreciation expense. It starts at 2.17 in 2020 and slightly decreases to 2.07 in 2021, suggesting capital expenditures were about twice the depreciation at that time. There is a spike to 2.81 in 2022, indicating a period of higher investment relative to asset depreciation. In 2023, the ratio drops below 2 (1.98), implying a relative slowdown in new capital expenditures compared to asset wear and tear. The 2024 ratio rises sharply to 4, which corresponds with the significant increase in net additions reported that year. This suggests aggressive investment activity significantly outpacing the depreciation charge.
Net sales
Amazon.com Inc., net sales by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | 387,497) | 352,828) | 315,880) | 279,833) | 236,282) |
| International | 142,906) | 131,200) | 118,007) | 127,787) | 104,412) |
| AWS | 107,556) | 90,757) | 80,096) | 62,202) | 45,370) |
| Consolidated | 637,959) | 574,785) | 513,983) | 469,822) | 386,064) |
Based on: 10-K (reporting date: 2024-12-31), 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).
- North America Segment Net Sales
- The North America segment exhibited a consistent and robust growth trend over the five-year period. Starting at $236,282 million in 2020, net sales increased each year, reaching $387,497 million by 2024. This represents an overall increase of approximately 64% from 2020 to 2024, indicating sustained strong demand and market expansion in this region.
- International Segment Net Sales
- The International segment experienced more variability compared to North America. Net sales rose from $104,412 million in 2020 to $127,787 million in 2021 but declined to $118,007 million in 2022. Subsequently, there was recovery and growth, with sales increasing to $131,200 million in 2023 and further to $142,906 million in 2024. Although the segment showed a dip in 2022, the overall trend remains upward with a compound growth reflecting resilience and potential market recovery in international markets.
- AWS Segment Net Sales
- The AWS segment demonstrated a strong upward trajectory throughout the period under review. Starting from $45,370 million in 2020, AWS sales increased significantly each year, reaching $107,556 million by 2024. This represents more than a doubling of net sales over the five years, highlighting AWS's critical role as a growth driver and its expanding footprint within the cloud services market.
- Consolidated Net Sales
- The consolidated net sales figure, encompassing all reportable segments, revealed consistent year-over-year growth, progressing from $386,064 million in 2020 to $637,959 million in 2024. This steady increase of nearly 65% over five years underscores the overall expansion of the company’s revenue base, supported by growth in each operating segment.
- Summary Insights
- The data reflects strong, sustained growth across all segments with variations in the pace and consistency of expansion. North America and AWS segments exhibited consistent, strong growth throughout the period, suggesting stable demand and increasing market penetration. The International segment encountered a temporary decline in 2022 but resumed growth thereafter, indicating some volatility likely due to regional economic or market factors. The consolidated figures align with these patterns, evidencing broad-based growth across the company’s segment portfolio.
Operating income (loss)
Amazon.com Inc., operating income (loss) by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | 24,967) | 14,877) | (2,847) | 7,271) | 8,651) |
| International | 3,792) | (2,656) | (7,746) | (924) | 717) |
| AWS | 39,834) | 24,631) | 22,841) | 18,532) | 13,531) |
| Consolidated | 68,593) | 36,852) | 12,248) | 24,879) | 22,899) |
Based on: 10-K (reporting date: 2024-12-31), 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).
- North America Segment Operating Income
- The operating income for the North America segment experienced notable volatility over the observed periods. It started at a high of 8,651 million USD at the end of 2020, then declined significantly to 7,271 million USD in 2021. In 2022, the segment reported a loss of 2,847 million USD, indicating a considerable downturn. However, a strong recovery followed in 2023, with operating income rising sharply to 14,877 million USD and further increasing to 24,967 million USD by the end of 2024, marking the highest value in the series.
- International Segment Operating Income
- The International segment presented a challenging and inconsistent performance. Starting from a positive 717 million USD in 2020, it swung to a loss of 924 million USD in 2021. This negative trend deepened significantly in 2022 with a loss of 7,746 million USD, before the loss narrowed to 2,656 million USD in 2023. By the end of 2024, the segment returned to profitability, generating 3,792 million USD in operating income, indicating a notable turnaround after consecutive years of losses.
- AWS Segment Operating Income
- The AWS segment showed a consistent and strong upward trend across all periods. Starting from 13,531 million USD in 2020, it steadily increased year-over-year, reaching 18,532 million USD in 2021, 22,841 million USD in 2022, and 24,631 million USD in 2023. The growth accelerated further in 2024, with operating income jumping to 39,834 million USD. This segment represents a key driver of profitability and growth within the overall business.
- Consolidated Operating Income
- The consolidated operating income reflects the combined effect of the three segments and displayed significant fluctuations. Beginning at 22,899 million USD in 2020, it saw a moderate increase to 24,879 million USD in 2021. A decline followed in 2022, dropping to 12,248 million USD, largely influenced by the losses in the North America and International segments. The total rebounded sharply in 2023, reaching 36,852 million USD, and nearly doubled again in 2024 to 68,593 million USD, driven primarily by the recovery of North America, the return to profitability in International, and continued strong growth at AWS.
- Overall Insights
- The data reveal distinct segment dynamics with AWS consistently expanding its operating income, becoming the key profitability engine. North America shows marked cyclical behavior, with a period of losses followed by robust recovery and growth. The International segment struggled significantly but managed to reverse losses and return to profitability by 2024. These segment performances collectively influenced the consolidated operating income, which exhibited considerable variation but ultimately achieved substantial growth by the end of the period analyzed.
Assets
Amazon.com Inc., assets by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | 210,120) | 196,029) | 185,268) | 161,255) | 108,405) |
| International | 69,487) | 69,718) | 64,666) | 57,983) | 42,212) |
| AWS | 155,953) | 108,533) | 88,491) | 63,835) | 47,574) |
| Corporate | 189,334) | 153,574) | 124,250) | 137,476) | 123,004) |
| Consolidated | 624,894) | 527,854) | 462,675) | 420,549) | 321,195) |
Based on: 10-K (reporting date: 2024-12-31), 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).
- North America Segment Assets
- There is a consistent upward trend in the North America segment assets over the five-year period. The value increased steadily from 108,405 million US dollars in 2020 to 210,120 million US dollars in 2024. This represents nearly a doubling of assets, indicating strong growth and investment in this region.
- International Segment Assets
- The International segment assets also show a general increase, rising from 42,212 million US dollars in 2020 to 69,487 million US dollars in 2024. However, growth appears to slow down in the last period, with assets slightly decreasing between 2023 and 2024, suggesting some challenges or reallocation of resources in this area.
- AWS Segment Assets
- The AWS segment displays the most significant and rapid growth. Assets increased from 47,574 million US dollars in 2020 to 155,953 million US dollars in 2024, more than tripling over the five-year span. This indicates a major expansion and heightened investment focus on cloud services within the company.
- Corporate Segment Assets
- Corporate assets exhibit fluctuations but show an overall upward trend. Starting at 123,004 million US dollars in 2020, there was a dip in 2022 to 124,250 million, followed by sharp increases in 2023 and 2024, reaching 189,334 million US dollars. This pattern may reflect changes in corporate overheads, investments, or consolidation activities.
- Consolidated Total Assets
- Total consolidated assets have grown substantially from 321,195 million US dollars in 2020 to 624,894 million US dollars in 2024, reflecting significant expansion across all segments. The largest absolute increases are seen in North America and AWS segments, contributing heavily to total asset growth.
Net additions to property and equipment
Amazon.com Inc., net additions to property and equipment by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | 24,348) | 17,529) | 23,682) | 37,397) | 29,889) |
| International | 6,643) | 4,144) | 6,711) | 10,259) | 8,072) |
| AWS | 53,267) | 24,843) | 27,755) | 22,047) | 16,530) |
| Corporate | 1,494) | 1,828) | 2,688) | 2,622) | 3,485) |
| Consolidated | 85,752) | 48,344) | 60,836) | 72,325) | 57,976) |
Based on: 10-K (reporting date: 2024-12-31), 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).
The analysis of the annual reportable segment net additions to property and equipment reveals varying trends across different segments over the five-year period.
- North America
- The net additions show an increase from 29,889 million USD in 2020 to a peak of 37,397 million USD in 2021. This is followed by a sharp decline to 23,682 million USD in 2022 and a further decrease to 17,529 million USD in 2023. However, there is a notable recovery in 2024, with net additions rising again to 24,348 million USD. Overall, this segment experienced significant volatility with a general decline after 2021 before partial recovery in the latest year.
- International
- This segment shows a somewhat parallel pattern to North America, with increases from 8,072 million USD in 2020 to 10,259 million USD in 2021, followed by a decline to 6,711 million USD in 2022 and further to 4,144 million USD in 2023. The year 2024 sees a moderate rebound to 6,643 million USD. The trend indicates a similar pattern of peak in 2021, subsequent reduction, and partial recovery.
- AWS (Amazon Web Services)
- In contrast to the geographic segments, AWS displays a generally strong upward trend with net additions increasing from 16,530 million USD in 2020 to 22,047 million USD in 2021, continuing to 27,755 million USD in 2022. There is a slight dip to 24,843 million USD in 2023, but the segment shows a pronounced surge to 53,267 million USD in 2024, representing the highest value across all segments and years. This illustrates significant investment growth, especially in the most recent year.
- Corporate
- The corporate segment exhibits a declining trend throughout the period. Net additions decrease consistently from 3,485 million USD in 2020 to 2,622 million USD in 2021 and remain relatively steady around 2,600 million USD in 2022. The downward trend continues with values dropping to 1,828 million USD in 2023 and further to 1,494 million USD in 2024, indicating a continued reduction in corporate-level net additions to property and equipment.
- Consolidated
- Total net additions consolidate the effects of all segments. The overall trend shows growth from 57,976 million USD in 2020 to a peak of 72,325 million USD in 2021. This is followed by declines to 60,836 million USD in 2022 and further down to 48,344 million USD in 2023. The consolidated net additions then experience a significant rise to 85,752 million USD in 2024, the highest level in the five-year span. This surge is primarily driven by the substantial increase in AWS net additions, counterbalancing declines in other segments.
In summary, the investiture patterns denote a peak in net additions around 2021 across multiple segments with subsequent declines through 2023, except for a notable outlier in AWS. The year 2024 reflects renewed growth especially within AWS and North America, leading to an overall consolidation increase to record levels. The corporate segment consistently contracts its net additions, suggesting a strategic shift or efficiencies in that area. This dynamic indicates a focused investment approach prioritizing AWS and maintaining investment in core geographies while reducing corporate expenditures.
Depreciation and amortization expense on property and equipment
Amazon.com Inc., depreciation and amortization expense on property and equipment by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | 14,285) | 13,678) | 11,565) | 9,234) | 6,421) |
| International | 4,462) | 4,016) | 3,483) | 3,022) | 2,215) |
| AWS | 13,320) | 12,531) | 9,876) | 10,653) | 7,603) |
| Consolidated | 32,067) | 30,225) | 24,924) | 22,909) | 16,239) |
Based on: 10-K (reporting date: 2024-12-31), 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).
The depreciation and amortization expense for property and equipment, segmented by business units, exhibits a consistent upward trend over the five-year period ending December 31, 2024. Each segment contributes distinctly to the consolidated figures, revealing differing growth rates and patterns.
- North America
- The expense in North America shows a significant and steady increase year-over-year. Starting at 6,421 million US dollars in 2020, it rose sharply to 9,234 million in 2021 and continued the upward trajectory, reaching 14,285 million by 2024. This represents a more than twofold increase over the five-year span, indicating substantial investment or asset growth in this region.
- International
- The International segment also experienced sustained growth, though at a lower absolute scale compared to North America. The expense increased from 2,215 million in 2020 to 4,462 million in 2024. This steady rise suggests expansion or escalating asset capitalization in international markets but at a more measured pace relative to North America.
- AWS
- The AWS segment starts at 7,603 million in 2020 and peaks at 10,653 million in 2021, followed by a slight decline to 9,876 million in 2022. However, the expense rebounds in subsequent years, reaching 13,320 million in 2024. This fluctuation may reflect varying investment cycles or changes in the amortization schedule of AWS’s capital assets, but the overall trend between 2020 and 2024 is upward.
- Consolidated
- The consolidated depreciation and amortization expense mirrors the aggregative effect of the three segments, rising steadily from 16,239 million in 2020 to 32,067 million in 2024. The nearly doubling of this expense over five years underscores significant capital investments and asset base growth across the company. The trend suggests sustained asset additions and/or increases in amortizable asset categories across all operating segments.
Overall, the data indicates robust growth in depreciation and amortization expenses, driven primarily by escalating costs in the North America and AWS segments, with International markets contributing incremental increases. The patterns suggest expanding asset bases likely due to capital expenditure and growth strategies aligned with operational scaling and technological investments.