Is the business good?
How good a business is AMZN?
Amazon earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
13%
Return on invested capital · cost of capital 9.0% · 4.2 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Internet Retail median 7.6% · 12 months to Q2 2026
- Cash conversion
- −0.09×
Cash conversion · 0.19× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.90%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 5.9% |
| FY2021 | 5.3% |
| FY2022 | 2.4% |
| FY2023 | 6.4% |
| FY2024 | 11% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q2 2026
- 51%
- Operating margin12 months to Q2 2026
- 12%
- Net margin12 months to Q2 2026
- 17%
- Free cash flow margin
- −1.5%
- Revenue, trailing twelve months
- $775.7B
- Free cash flow, trailing twelve months
- −$11.6B
- Net income, trailing twelve months
- $135.3B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Retail
Ranks #11 of 18 by Smart Score