Amazon.com (NEOE:AMZN) ROCE %

: 16.28% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Amazon.com's annualized ROCE % for the quarter that ended in Dec. 2023 was 16.28%.

Amazon.com ROCE % Historical Data

The historical data trend for Amazon.com's ROCE % 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.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 13.34 [6] => 15.37 [7] => 16.89 [8] => -1.25 [9] => 12.09 )

Amazon.com Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

13.34

15.37

16.89

-1.25

12.09

Amazon.com Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																-0.36	6.36	10.25	15.63	16.28

Amazon.com ROCE % Calculation

Amazon.com's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	54655.442	/	( ( (628543.987 - 211101.39)	+	(708168.926 - 221252.647) )	/ 2 )
	=	54655.442	/	( (417442.597	+	486916.279)	/ 2 )
	=	54655.442	/	452179.438
	=	12.09 %

Amazon.com's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	77270.792	/	( ( (658801.387 - 196489.063)	+	(708168.926 - 221252.647) )	/ 2 )
	=	77270.792	/	( ( 462312.324	+	486916.279 )	/ 2 )
	=	77270.792	/	474614.3015
	=	16.28 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Amazon.com (NEOE:AMZN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Amazon.com ROCE % Related Terms

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Amazon.com (NEOE:AMZN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Amazon.com Inc (NEOE:AMZN) » Definitions » ROCE %

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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.