Amazon.com (AMZN) Interest Coverage

: 18.53 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Amazon.com's Operating Income for the three months ended in Dec. 2023 was $13,209 Mil. Amazon.com's Interest Expense for the three months ended in Dec. 2023 was $-713 Mil. Amazon.com's interest coverage for the quarter that ended in Dec. 2023 was 18.53. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Amazon.com's Interest Coverage or its related term are showing as below:

AMZN' s Interest Coverage Range Over the Past 10 Years
Min: 0.85 Med: 8.71 Max: 13.9
Current: 11.58

AMZN's Interest Coverage is ranked better than
58.3% of 753 companies
in the Retail - Cyclical industry
Industry Median: 7.85 vs AMZN: 11.58

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Amazon.com Interest Coverage Historical Data

The historical data trend for Amazon.com's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Amazon.com Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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9.09

13.90

13.75

5.17

11.58

Amazon.com Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.94	5.80	9.14	13.88	18.53

Competitive Comparison

For the Internet Retail subindustry, Amazon.com's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Amazon.com Interest Coverage Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Amazon.com's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Amazon.com's Interest Coverage falls into.

Amazon.com Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Amazon.com's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Amazon.com's Interest Expense was $-3,182 Mil. Its Operating Income was $36,852 Mil. And its Long-Term Debt & Capital Lease Obligation was $135,611 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	36852	/	-3182
	=	11.58

Amazon.com's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Amazon.com's Interest Expense was $-713 Mil. Its Operating Income was $13,209 Mil. And its Long-Term Debt & Capital Lease Obligation was $135,611 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	13209	/	-713
	=	18.53

The higher the ratio, the stronger the company's Financial Strength is.

Amazon.com (NAS:AMZN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Amazon.com Interest Coverage Related Terms

Thank you for viewing the detailed overview of Amazon.com's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Amazon.com (AMZN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Amazon.com Inc (NAS:AMZN) » Definitions » Interest Coverage

Comparable Companies

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Address

410 Terry Avenue North, Seattle, WA, USA, 98109-5210

Website

https://www.amazon.com

Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $578 billion in estimated physical/digital online gross merchandise volume in 2021. Retail-related revenue represents approximately 80% of the total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (10%-15%), advertising services (5%), and other. International segments constitute 25%-30% of Amazon's non-AWS sales, led by Germany, the United Kingdom, and Japan.

Executives

Adam Selipsky	officer: CEO Amazon Web Services	PO BOX 81226, SEATTLE WA 98108
Douglas J Herrington	officer: CEO Worldwide Amazon Stores	PO BOX 81226, SEATTLE WA 98108
David Zapolsky	officer: Senior Vice President	PO BOX 81226, SEATTLE WA 98108
Andrew R Jassy	director, officer: President and CEO	PO BOX 81226, SEATTLE WA 98108-1226
Shelley Reynolds	officer: Vice President	PO BOX 81226, SEATTLE WA 98108
Brian T Olsavsky	officer: Senior Vice President and CFO	PO BOX 81226, SEATTLE WA 98108
Daniel P Huttenlocher	director	ONE RIVERFRONT PLAZA, CORNING NY 14831
Brad D Smith	director	1040 13TH AVE, HUNTINGTON WV 25701
Jeffrey P Bezos	director, 10 percent owner, officer: Chairman, CEO and President	PO BOX 81226, SEATTLE WA 98108-1226
David H Clark	officer: Senior Vice President	PO BOX 81226, SEATTLE WA 98108
Jonathan Rubinstein	director	APPLE COMPUTER INC, 1 INFINITE LOOP, CUPERTINO CA 95014
Edith W Cooper	director	C/O ETSY, INC., 117 ADAMS STREET, BROOKLYN NY 11249
Judith A Mcgrath	director	PO BOX 81226, SEATTLE WA 98108
Jeffrey A Wilke	officer: CEO Worldwide Consumer	PO BOX 81226, SEATTLE WA 98108-1226
Patricia Q Stonesifer	director	PO BOX 81226, SEATTLE WA 98108-1226