Brief Introduction of the Company

• American Multinational company

• Founded in 1994 by Jeff Bezos
• It focuses on e-commerce, cloud computing, digital streaming, and
artificial intelligence.
• Amazon has earned a reputation as a disruptor of well-established
industries through technological innovation and mass scale
 Mission of Amazon

• To be the earth most customer centric company, to build a place where

people may come to find and discover anything, they might want to
buy online.
• To leverage technology and the expertise of individual employees and
to provide customer the best shopping experience on the internet.
 Profitability Ratio

Return of Equity
Net Income  Preferred dividends

Return on Equity Average common stockholders’ equity

A profitability ratio calculated as net income divided by shareholders equity.

2021 Calculation:
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 33,364 ÷ 138,245 = 24.13%

2021 2020 2019

ROE 24.13% 22.84% 18.67%
Amazon.com Inc., ROE Calculation in graph

Amazon company ROE improved from 2019 to 2020 and from 2020
to 2021.
 Return on Assets (ROA)
A profitability ratio calculated as net income divided by total
assets.
2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 33,364 ÷ 420,549 = 7.93%

2021 2020 2019

ROA 7.93% 6.64% 5.14%
 Amazon.com Inc. ROA improved from 2019 to 2020 and from
2020 to 2021.
 Net Profit Margin

A profitability ratio calculated as net income divided by total assets.

2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 33,364 ÷ 420,549 = 7.93%

2021 2020 2019

ROA 7.93% 6.64% 5.14%
Amazon.com Inc. net profit improved from 2019 to 2020 and from 2020
to 2021.