Amazon Price to Sales Ratio vs Operating Income Analysis

AMZN Stock  USD 180.38  0.55  0.31%   
Amazon financial indicator trend analysis is way more than just evaluating Amazon Inc prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Amazon Inc is a good investment. Please check the relationship between Amazon Price To Sales Ratio and its Operating Income accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Amazon Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Price To Sales Ratio vs Operating Income

Price to Sales Ratio vs Operating Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Amazon Inc Price to Sales Ratio account and Operating Income. At this time, the significance of the direction appears to have weak contrarian relationship.
The correlation between Amazon's Price to Sales Ratio and Operating Income is -0.1. Overlapping area represents the amount of variation of Price to Sales Ratio that can explain the historical movement of Operating Income in the same time period over historical financial statements of Amazon Inc, assuming nothing else is changed. The correlation between historical values of Amazon's Price to Sales Ratio and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Price to Sales Ratio of Amazon Inc are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Price to Sales Ratio i.e., Amazon's Price to Sales Ratio and Operating Income go up and down completely randomly.

Correlation Coefficient

-0.1
Relationship DirectionNegative 
Relationship StrengthInsignificant

Price To Sales Ratio

Price to Sales Ratio is figured by comparing Amazon Inc stock price to its revenues. An advantage to using Price to Sales ratio is that it is based on Amazon sales, a figure that is much harder to manipulate than other Amazon Inc multiples. Because sales tend to be more stable P/S ratio can be a good tool for screening cyclical companies fluctuating earnings patterns. A valuation ratio that compares a company’s stock price to its revenues, calculated by dividing the company’s market cap by its total sales or revenue over a 12-month period.

Operating Income

Operating Income is the amount of profit realized from Amazon Inc operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Amazon Inc is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.
Most indicators from Amazon's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Amazon Inc current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Amazon Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
At this time, Amazon's Tax Provision is very stable compared to the past year. As of the 29th of March 2024, Selling General Administrative is likely to grow to about 12.4 B, while Enterprise Value Multiple is likely to drop 17.51.
 2021 2022 2023 2024 (projected)
Gross Profit197.5B225.2B270.0B283.5B
Total Revenue469.8B514.0B574.8B603.5B

Amazon fundamental ratios Correlations

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1.00.960.980.991.00.940.990.970.960.540.930.410.970.950.990.990.980.970.990.990.940.980.850.490.96
0.550.650.560.530.480.50.520.540.590.540.540.290.560.330.550.560.480.560.560.560.350.590.410.230.58
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0.450.530.510.390.40.370.370.540.480.410.290.530.570.370.420.480.350.520.430.450.360.50.220.390.47
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0.810.780.760.860.840.70.840.720.850.850.410.610.220.730.870.890.780.90.720.80.790.760.78-0.030.78
0.540.490.590.460.510.650.50.630.360.490.230.730.390.60.410.390.580.370.630.550.560.580.53-0.030.48
0.970.970.970.950.950.880.940.960.970.960.580.930.470.960.850.960.970.930.970.960.960.870.970.780.48
Click cells to compare fundamentals

Amazon Account Relationship Matchups

Amazon fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets225.2B321.2B420.5B462.7B527.9B554.2B
Other Current Liab32.4B28.0B35.9B47.7B45.8B48.1B
Total Current Liabilities87.8B126.4B142.3B155.4B164.9B173.2B
Total Stockholder Equity62.1B93.4B138.2B146.0B201.9B212.0B
Property Plant And Equipment Net72.7B150.7B216.4B252.8B276.7B290.5B
Net Debt27.1B42.0B79.9B85.9B61.7B64.8B
Retained Earnings31.2B52.6B85.9B83.2B113.6B119.3B
Accounts Payable47.2B72.5B78.7B79.6B85.0B89.2B
Cash36.1B42.4B36.5B54.3B73.9B77.6B
Non Current Assets Total128.9B188.5B259.0B315.9B355.5B373.3B
Non Currrent Assets Other110.0B14.8B18.7B34.6B46.1B48.4B
Cash And Short Term Investments55.0B84.7B96.3B70.4B87.3B91.6B
Common Stock Shares Outstanding10.1B10.2B10.3B10.2B10.5B9.4B
Liabilities And Stockholders Equity225.2B321.2B420.5B462.7B527.9B554.2B
Inventory20.5B23.8B32.6B34.4B33.3B35.0B
Other Current Assets276M4.9B7.4B8.9B10.2B10.7B
Other Stockholder Equity31.8B41.0B53.7B67.2B91.2B95.7B
Total Liab163.2B227.8B282.3B316.6B326.0B342.3B
Property Plant And Equipment Gross72.7B150.7B216.4B252.8B396.8B416.6B
Total Current Assets96.3B132.7B161.6B146.8B172.4B181.0B
Accumulated Other Comprehensive Income(986M)(180M)(1.4B)(4.5B)(3.0B)(2.9B)
Short Long Term Debt Total63.2B84.4B116.4B140.1B135.6B142.4B
Non Current Liabilities Total75.4B101.4B140.0B161.2B161.1B169.1B
Short Term Debt1.3B16.1B15.9B14.9B18.9B19.9B
Current Deferred Revenue8.2B9.7B11.8B13.2B15.2B16.0B
Short Term Investments18.9B42.3B59.8B16.1B13.4B8.9B
Intangible Assets4.0B5.0B5.1B6.1B7.7B8.1B
Good Will14.8B15.0B15.4B20.3B22.8B23.9B
Other Assets10.1B18.1B27.2B31.7B36.4B38.2B
Long Term Debt23.4B31.8B48.7B67.2B58.3B61.2B
Property Plant Equipment72.7B150.7B216.4B252.8B290.8B305.3B
Other Liab12.2B17.0B23.6B14.4B16.6B17.4B
Net Receivables20.8B24.3B32.6B42.0B51.8B54.3B
Net Tangible Assets87.1B131.0B122.9B198.7B228.5B240.0B
Retained Earnings Total Equity31.2B52.6B85.9B83.2B95.7B100.5B
Long Term Debt Total23.4B31.8B48.7B67.2B77.2B81.1B
Capital Surpluse33.7B42.9B55.5B75.1B86.3B90.6B

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

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Moving against Amazon Stock

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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 instruments. 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 Trending Equities to better understand how to build diversified portfolios, which includes a position in Amazon Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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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.
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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.