AMZNNEUTRAL

AMZN Return on Equity (ROE) Analysis

18.9%

Higher than 76% of Consumer Cyclical sector peers

Updated 2914h ago·SEC filings & market data

Key Takeaway

Amazon's return on equity (ROE) of 18.9% means that for every dollar of shareholders' equity, the company generated $0.189 in net profit over the past year.

Sector Performance

76th percentile

AMZN

18.9%

Sector Median

8.1%

Sector Avg

-34.0%

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Deep Analysis

Amazon's return on equity (ROE) of 18.9% means that for every dollar of shareholders' equity, the company generated $0.189 in net profit over the past year.

This puts it above the consumer cyclical sector median of 16.9%, ranking in the 59th percentile among its peers. The metric has been perfectly stable over the last eight quarters, with year-over-year and quarter-over-quarter changes both at +0.0%. The combination of an above-median ROE with no movement indicates consistent but unremarkable profitability—no recent improvement or deterioration to drive a change in risk or opportunity. This stability at a level slightly better than the sector average supports the overall NEUTRAL verdict, as the metric neither signals a compelling advantage nor a looming weakness.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AMZN?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AMZN's Return on Equity (ROE) compare to its sector?

AMZN's Return on Equity (ROE) of 18.9% compares to a Consumer Cyclical sector median of 8.1%, placing it in the 76th percentile.

Who are AMZN's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: BWA (8.1%), JACK (8.6%), BABA (9.2%), TSLA (4.7%), AMCR (4.4%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.