Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

Amazon.com Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 624,894 527,854 462,675 420,549 321,195
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 624,894 527,854 462,675 420,549 321,195
Adjustment to Total Debt
Total debt (as reported) 68,242 78,917 85,932 73,988 61,405
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current portion of lease liabilities, operating leases 10,546 8,419 7,458 6,349 4,586
Add: Long-term lease liabilities, operating leases, excluding current portion 69,050 67,220 61,582 51,981 34,513
Total debt (adjusted) 147,838 154,556 154,972 132,318 100,504

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, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

Amazon.com Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 1.02 1.09 1.11 1.12 1.20
Adjusted total asset turnover 1.02 1.09 1.11 1.12 1.20
Debt to Equity2
Reported debt to equity 0.24 0.39 0.59 0.54 0.66
Adjusted debt to equity 0.52 0.77 1.06 0.96 1.08
Return on Assets3 (ROA)
Reported ROA 9.48% 5.76% -0.59% 7.93% 6.64%
Adjusted ROA 9.48% 5.76% -0.59% 7.93% 6.64%

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).

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 deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Amazon.com Inc. adjusted debt to equity ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Amazon.com Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

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


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales 637,959 574,785 513,983 469,822 386,064
Total assets 624,894 527,854 462,675 420,549 321,195
Activity Ratio
Total asset turnover1 1.02 1.09 1.11 1.12 1.20
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales 637,959 574,785 513,983 469,822 386,064
Adjusted total assets 624,894 527,854 462,675 420,549 321,195
Activity Ratio
Adjusted total asset turnover2 1.02 1.09 1.11 1.12 1.20

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).

2024 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 637,959 ÷ 624,894 = 1.02

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 637,959 ÷ 624,894 = 1.02

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 deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total debt 68,242 78,917 85,932 73,988 61,405
Stockholders’ equity 285,970 201,875 146,043 138,245 93,404
Solvency Ratio
Debt to equity1 0.24 0.39 0.59 0.54 0.66
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 147,838 154,556 154,972 132,318 100,504
Stockholders’ equity 285,970 201,875 146,043 138,245 93,404
Solvency Ratio
Adjusted debt to equity2 0.52 0.77 1.06 0.96 1.08

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).

2024 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 68,242 ÷ 285,970 = 0.24

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 147,838 ÷ 285,970 = 0.52

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Amazon.com Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 59,248 30,425 (2,722) 33,364 21,331
Total assets 624,894 527,854 462,675 420,549 321,195
Profitability Ratio
ROA1 9.48% 5.76% -0.59% 7.93% 6.64%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) 59,248 30,425 (2,722) 33,364 21,331
Adjusted total assets 624,894 527,854 462,675 420,549 321,195
Profitability Ratio
Adjusted ROA2 9.48% 5.76% -0.59% 7.93% 6.64%

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).

2024 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 59,248 ÷ 624,894 = 9.48%

2 Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 59,248 ÷ 624,894 = 9.48%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Amazon.com Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.