AMZNAmazon
Is the business good?
A genuinely good business: earnings fully cash-backed (2.2×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 21% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 6.0% · 12 months to Q2 2026
- Cash conversion
- 2.23×
Cash conversion · 1.87× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Internet Retail
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