How are AMZN's financials?

Amazon.com's financials reflect a strong overall performance, with notable growth in net income and revenue, robust profitability indicators, and a solid return on investment metrics.

1. Net Income and Growth:
   • Amazon reported a net income of $15.33 billion for the quarter ending September 30, 2024.
   • This represents a significant year-over-year growth of 55.16% in net income.

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AMZN Net Income YoY, Net Income

2. Revenue and Growth:
   • The company's total revenue for the quarter was $158.88 billion.
   • Amazon's revenue grew by 11.04% year-over-year.
3. Earnings Per Share (EPS) and Growth:
   • The diluted EPS for the quarter was $1.43.
   • This EPS grew by 52.13% compared to the previous year.
4. Return on Equity (ROE) and Return on Assets (ROA):
   • Amazon's ROE was 17.02%, indicating efficient equity utilization.
   • The company's ROA stood at 8.02%, showing profitability relative to its total assets.

ROIC, AMZN ROA, ROE(Average)

5. Valuation Metrics:
   • Amazon's P/E ratio is 43.38, suggesting that investors are willing to pay a premium for the company's earnings.
   • The Price-to-Sales (P/S) ratio is 3.49, which is relatively low compared to some of its peers, indicating that the stock may be undervalued based on its sales.
   • The Price-to-Book (P/B) ratio is 8.35, reflecting a premium valuation compared to its net asset value.
6. Cash Flow and Efficiency:
   • Amazon generated $25.97 billion in operating cash flow, which is a strong indicator of the company's ability to generate cash from its core operations.
   • The company's free cash flow was $3.36 billion, and it had a positive operating cash flow of $25.97 billion, with investments and financing activities showing negative cash flows of $16.9 billion and $2.76 billion, respectively.

AMZN Free Cash Flow, Investing Cash Flow...

In conclusion, Amazon's financials demonstrate robust growth and profitability, with strong net income and revenue growth rates, healthy return on equity and assets, and efficient cash flow management. The company's valuation metrics suggest a premium is placed on its earnings and sales, which could be due to its dominant market position and future growth prospects, particularly in cloud computing and AI-driven services.