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Amazon.com (AMZN) Gross Margin %

: 17.22% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Amazon.com's Gross Profit for the three months ended in Dec. 2023 was $29,275 Mil. Amazon.com's Revenue for the three months ended in Dec. 2023 was $169,961 Mil. Therefore, Amazon.com's Gross Margin % for the quarter that ended in Dec. 2023 was 17.22%.


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

AMZN' s Gross Margin % Range Over the Past 10 Years
Min: 6.96   Med: 13.21   Max: 16.32
Current: 16.32


During the past 13 years, the highest Gross Margin % of Amazon.com was 16.32%. The lowest was 6.96%. And the median was 13.21%.

AMZN's Gross Margin % is ranked worse than
83.81% of 1093 companies
in the Retail - Cyclical industry
Industry Median: 36.86 vs AMZN: 16.32

Amazon.com had a gross margin of 17.22% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Amazon.com was 2.70% per year.


Amazon.com Gross Margin % Historical Data

The historical data trend for Amazon.com's Gross Margin % 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] => 13.84 [6] => 13.34 [7] => 14.11 [8] => 13.16 [9] => 16.32 )
Amazon.com Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.84 13.34 14.11 13.16 16.32

Amazon.com Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.17 14.30 16.20 17.15 17.22

Competitive Comparison

For the Internet Retail subindustry, Amazon.com's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

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

* The bar in red indicates where Amazon.com's Gross Margin % falls into.



Amazon.com Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

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

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=93805 / 574785
=(Revenue - Cost of Goods Sold) / Revenue
=(574785 - 480980) / 574785
=16.32 %

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


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=29275 / 169961
=(Revenue - Cost of Goods Sold) / Revenue
=(169961 - 140686) / 169961
=17.22 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Amazon.com  (NAS:AMZN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Amazon.com had a gross margin of 17.22% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Amazon.com Gross Margin % Related Terms

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


Amazon.com (AMZN) Business Description

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

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