Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Amazon.com Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	22,789)	20,288)	15,371)	15,017)	14,754)
Marketing-related	2,643)	2,407)	2,286)	2,289)	2,303)
Contract-based	4,800)	3,661)	2,327)	1,917)	1,680)
Technology- and content-based	743)	883)	976)	948)	1,005)
Customer-related	749)	184)	197)	179)	282)
Finite-lived intangible assets, gross	8,935)	7,135)	5,786)	5,333)	5,270)
Accumulated amortization	(2,395)	(2,185)	(1,826)	(1,495)	(1,249)
Finite-lived intangible assets, net	6,540)	4,950)	3,960)	3,838)	4,021)
IPR&D and other	1,147)	1,147)	1,147)	1,143)	28)
Indefinite-lived intangible assets	1,147)	1,147)	1,147)	1,143)	28)
Acquired intangibles	7,687)	6,097)	5,107)	4,981)	4,049)
Goodwill and acquired intangible assets	30,476)	26,385)	20,478)	19,998)	18,803)

Based on: 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), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Amazon.com Inc. goodwill increased from 2021 to 2022 and from 2022 to 2023.
Acquired intangibles	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Amazon.com Inc. acquired intangibles increased from 2021 to 2022 and from 2022 to 2023.
Goodwill and acquired intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Amazon.com Inc. goodwill and acquired intangible assets increased from 2021 to 2022 and from 2022 to 2023.

Amazon.com Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	527,854)	462,675)	420,549)	321,195)	225,248)
Less: Goodwill	22,789)	20,288)	15,371)	15,017)	14,754)
Total assets (adjusted)	505,065)	442,387)	405,178)	306,178)	210,494)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	201,875)	146,043)	138,245)	93,404)	62,060)
Less: Goodwill	22,789)	20,288)	15,371)	15,017)	14,754)
Stockholders’ equity (adjusted)	179,086)	125,755)	122,874)	78,387)	47,306)

Based on: 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), 10-K (reporting date: 2019-12-31).

Amazon.com Inc., Financial Data: Reported vs. Adjusted

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Amazon.com Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total Asset Turnover
Reported total asset turnover	1.09	1.11	1.12	1.20	1.25
Adjusted total asset turnover	1.14	1.16	1.16	1.26	1.33
Financial Leverage
Reported financial leverage	2.61	3.17	3.04	3.44	3.63
Adjusted financial leverage	2.82	3.52	3.30	3.91	4.45
Return on Equity (ROE)
Reported ROE	15.07%	-1.86%	24.13%	22.84%	18.67%
Adjusted ROE	16.99%	-2.16%	27.15%	27.21%	24.50%
Return on Assets (ROA)
Reported ROA	5.76%	-0.59%	7.93%	6.64%	5.14%
Adjusted ROA	6.02%	-0.62%	8.23%	6.97%	5.51%

Based on: 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), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Amazon.com Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Amazon.com Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Amazon.com Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Amazon.com Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Amazon.com Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	574,785)	513,983)	469,822)	386,064)	280,522)
Total assets	527,854)	462,675)	420,549)	321,195)	225,248)
Activity Ratio
Total asset turnover¹	1.09	1.11	1.12	1.20	1.25
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales	574,785)	513,983)	469,822)	386,064)	280,522)
Adjusted total assets	505,065)	442,387)	405,178)	306,178)	210,494)
Activity Ratio
Adjusted total asset turnover²	1.14	1.16	1.16	1.26	1.33

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 574,785 ÷ 527,854 = 1.09

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 574,785 ÷ 505,065 = 1.14

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Amazon.com Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	527,854)	462,675)	420,549)	321,195)	225,248)
Stockholders’ equity	201,875)	146,043)	138,245)	93,404)	62,060)
Solvency Ratio
Financial leverage¹	2.61	3.17	3.04	3.44	3.63
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	505,065)	442,387)	405,178)	306,178)	210,494)
Adjusted stockholders’ equity	179,086)	125,755)	122,874)	78,387)	47,306)
Solvency Ratio
Adjusted financial leverage²	2.82	3.52	3.30	3.91	4.45

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 527,854 ÷ 201,875 = 2.61

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 505,065 ÷ 179,086 = 2.82

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Amazon.com Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	30,425)	(2,722)	33,364)	21,331)	11,588)
Stockholders’ equity	201,875)	146,043)	138,245)	93,404)	62,060)
Profitability Ratio
ROE¹	15.07%	-1.86%	24.13%	22.84%	18.67%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss)	30,425)	(2,722)	33,364)	21,331)	11,588)
Adjusted stockholders’ equity	179,086)	125,755)	122,874)	78,387)	47,306)
Profitability Ratio
Adjusted ROE²	16.99%	-2.16%	27.15%	27.21%	24.50%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 30,425 ÷ 201,875 = 15.07%

² Adjusted ROE = 100 × Net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 30,425 ÷ 179,086 = 16.99%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Amazon.com Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	30,425)	(2,722)	33,364)	21,331)	11,588)
Total assets	527,854)	462,675)	420,549)	321,195)	225,248)
Profitability Ratio
ROA¹	5.76%	-0.59%	7.93%	6.64%	5.14%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss)	30,425)	(2,722)	33,364)	21,331)	11,588)
Adjusted total assets	505,065)	442,387)	405,178)	306,178)	210,494)
Profitability Ratio
Adjusted ROA²	6.02%	-0.62%	8.23%	6.97%	5.51%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 30,425 ÷ 527,854 = 5.76%

² Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 30,425 ÷ 505,065 = 6.02%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Amazon.com Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Amazon.com Inc. (NASDAQ:AMZN)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Amazon.com Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Amazon.com Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)