Amazon Inc Stock Return On Equity

AMZN Stock  USD 174.48  0.06  0.03%   
Amazon Inc fundamentals help investors to digest information that contributes to Amazon's financial success or failures. It also enables traders to predict the movement of Amazon Stock. The fundamental analysis module provides a way to measure Amazon's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Amazon stock.
As of the 19th of March 2024, Return On Equity is likely to grow to 0.16.
  
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Amazon Return On Equity Analysis

Amazon's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Amazon Return On Equity

0.16

Return On Equity

 = 

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current Amazon Return On Equity

    
  0.17  
Most of Amazon's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Amazon Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Amazon Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Amazon is extremely important. It helps to project a fair market value of Amazon Stock properly, considering its historical fundamentals such as Return On Equity. Since Amazon's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Amazon's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Amazon's interrelated accounts and indicators.
0.970.990.940.990.980.930.981.00.990.940.990.540.970.810.940.990.980.990.860.99-0.320.980.980.990.840.040.950.930.230.810.6
0.970.940.910.930.970.850.950.980.970.840.990.490.970.780.970.950.970.950.870.97-0.420.940.960.960.89-0.020.950.880.180.780.59
0.990.940.911.00.950.950.990.970.960.940.970.460.950.850.910.990.950.990.810.99-0.260.980.980.990.780.080.920.920.230.850.64
0.940.910.910.930.930.890.880.950.930.90.910.650.880.720.850.940.950.940.810.9-0.250.910.910.910.760.050.910.920.210.710.48
0.990.931.00.930.950.950.990.970.960.950.960.50.940.830.91.00.950.990.810.98-0.230.980.980.990.770.110.920.930.260.830.62
0.980.970.950.930.950.890.950.991.00.930.980.630.960.720.950.960.960.960.910.96-0.420.940.950.960.88-0.010.960.890.280.710.51
0.930.850.950.890.950.890.940.920.890.950.890.410.850.860.790.960.910.960.680.93-0.270.930.940.940.620.040.80.910.10.860.65
0.980.950.990.880.990.950.940.970.960.920.970.390.960.880.930.990.950.990.791.0-0.290.980.991.00.80.030.910.910.180.870.69
1.00.980.970.950.970.990.920.970.990.930.990.580.970.780.950.980.980.980.880.98-0.360.970.970.980.860.010.960.920.230.780.57
0.990.970.960.930.961.00.890.960.990.930.990.630.970.720.950.960.960.970.910.96-0.40.950.950.960.870.010.960.90.330.710.51
0.940.840.940.90.950.930.950.920.930.930.90.580.870.750.810.950.890.960.770.91-0.220.940.90.920.680.170.870.910.240.750.55
0.990.990.970.910.960.980.890.970.990.990.90.530.970.780.960.970.970.970.880.98-0.380.960.970.980.89-0.030.950.890.240.780.58
0.540.490.460.650.50.630.410.390.580.630.580.530.48-0.020.460.490.490.490.750.42-0.290.420.40.410.550.050.630.510.66-0.03-0.2
0.970.970.950.880.940.960.850.960.970.970.870.970.480.770.990.940.950.950.880.97-0.330.940.960.960.91-0.010.940.860.240.770.6
0.810.780.850.720.830.720.860.880.780.720.750.78-0.020.770.740.850.830.850.450.87-0.120.880.880.880.530.070.660.8-0.261.00.87
0.940.970.910.850.90.950.790.930.950.950.810.960.460.990.740.910.950.910.880.94-0.390.90.940.930.94-0.080.920.820.20.740.58
0.990.950.990.941.00.960.960.990.980.960.950.970.490.940.850.910.971.00.810.99-0.260.980.980.990.770.070.920.940.190.850.64
0.980.970.950.950.950.960.910.950.980.960.890.970.490.950.830.950.970.970.840.97-0.320.940.980.970.84-0.030.90.920.120.820.61
0.990.950.990.940.990.960.960.990.980.970.960.970.490.950.850.911.00.970.810.99-0.270.980.990.990.780.060.910.940.190.850.64
0.860.870.810.810.810.910.680.790.880.910.770.880.750.880.450.880.810.840.810.81-0.410.760.790.80.90.010.870.750.520.440.25
0.990.970.990.90.980.960.931.00.980.960.910.980.420.970.870.940.990.970.990.81-0.310.980.991.00.820.040.920.910.180.860.67
-0.32-0.42-0.26-0.25-0.23-0.42-0.27-0.29-0.36-0.4-0.22-0.38-0.29-0.33-0.12-0.39-0.26-0.32-0.27-0.41-0.31-0.23-0.29-0.28-0.40.29-0.3-0.2-0.11-0.11-0.04
0.980.940.980.910.980.940.930.980.970.950.940.960.420.940.880.90.980.940.980.760.98-0.230.970.990.760.110.930.920.110.870.69
0.980.960.980.910.980.950.940.990.970.950.90.970.40.960.880.940.980.980.990.790.99-0.290.970.990.81-0.010.890.910.130.880.68
0.990.960.990.910.990.960.941.00.980.960.920.980.410.960.880.930.990.970.990.81.0-0.280.990.990.80.040.920.920.140.880.68
0.840.890.780.760.770.880.620.80.860.870.680.890.550.910.530.940.770.840.780.90.82-0.40.760.810.8-0.140.860.680.310.530.39
0.04-0.020.080.050.11-0.010.040.030.010.010.17-0.030.05-0.010.07-0.080.07-0.030.060.010.040.290.11-0.010.04-0.140.10.190.090.080.13
0.950.950.920.910.920.960.80.910.960.960.870.950.630.940.660.920.920.90.910.870.92-0.30.930.890.920.860.10.850.330.660.48
0.930.880.920.920.930.890.910.910.920.90.910.890.510.860.80.820.940.920.940.750.91-0.20.920.910.920.680.190.850.180.790.71
0.230.180.230.210.260.280.10.180.230.330.240.240.660.24-0.260.20.190.120.190.520.18-0.110.110.130.140.310.090.330.18-0.26-0.34
0.810.780.850.710.830.710.860.870.780.710.750.78-0.030.771.00.740.850.820.850.440.86-0.110.870.880.880.530.080.660.79-0.260.87
0.60.590.640.480.620.510.650.690.570.510.550.58-0.20.60.870.580.640.610.640.250.67-0.040.690.680.680.390.130.480.71-0.340.87
Click cells to compare fundamentals
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Competition

Amazon Total Stockholder Equity

Total Stockholder Equity

211.97 Billion

At this time, Amazon's Total Stockholder Equity is very stable compared to the past year.
Based on the latest financial disclosure, Amazon Inc has a Return On Equity of 0.1749. This is 95.14% lower than that of the Internet & Direct Marketing Retail sector and significantly higher than that of the Consumer Discretionary industry. The return on equity for all United States stocks is 156.42% lower than that of the firm.

Amazon Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Amazon's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Amazon could also be used in its relative valuation, which is a method of valuing Amazon by comparing valuation metrics of similar companies.
Amazon is currently under evaluation in return on equity category among related companies.

Amazon ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Amazon's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Amazon's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Amazon Fundamentals

About Amazon Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Amazon Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Amazon using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Amazon Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2024
Return On Equity 0.15  0.16 

Pair Trading with Amazon

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Amazon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amazon will appreciate offsetting losses from the drop in the long position's value.

Moving together with Amazon Stock

  0.89HD Home Depot Financial Report 21st of May 2024 PairCorr
  0.71CVNA Carvana Aggressive PushPairCorr

Moving against Amazon Stock

  0.95EXTO Almacenes Xito SAPairCorr
  0.81TSLA Tesla Inc Buyout TrendPairCorr
  0.77FTCH Farfetch ClassPairCorr
  0.75CHWY Chewy Inc Earnings Call TomorrowPairCorr
  0.74CUK Carnival Plc ADS Earnings Call This WeekPairCorr
The ability to find closely correlated positions to Amazon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amazon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Amazon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Amazon Inc to buy it.
The correlation of Amazon is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Amazon moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amazon Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Amazon can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Amazon Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amazon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amazon Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amazon Inc Stock:
Check out Amazon Piotroski F Score and Amazon Altman Z Score analysis.
Note that the Amazon Inc information on this page should be used as a complementary analysis to other Amazon's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

Complementary Tools for Amazon Stock analysis

When running Amazon's price analysis, check to measure Amazon's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Amazon is operating at the current time. Most of Amazon's value examination focuses on studying past and present price action to predict the probability of Amazon's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Amazon's price. Additionally, you may evaluate how the addition of Amazon to your portfolios can decrease your overall portfolio volatility.
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Stocks Directory
Find actively traded stocks across global markets
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Is Amazon's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amazon. If investors know Amazon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amazon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
50.693
Earnings Share
2.9
Revenue Per Share
55.783
Quarterly Revenue Growth
0.139
Return On Assets
0.0465
The market value of Amazon Inc is measured differently than its book value, which is the value of Amazon that is recorded on the company's balance sheet. Investors also form their own opinion of Amazon's value that differs from its market value or its book value, called intrinsic value, which is Amazon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amazon's market value can be influenced by many factors that don't directly affect Amazon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amazon's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amazon is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amazon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.