Business Description

Amazon.com, Inc. An international technology business offers online retail shopping services. North America, International, and Amazon Web Services comprise its three business segments (AWS). North America includes the retail sale of consumer products as well as subscriptions through North American-focused websites such as www.amazon.com.

Through websites with an international audience, the International division engages in retail sales of consumer goods and subscriptions. Amazon Web Services is involved in global sales for computing, storage, and database as well as AWS service offerings. This segment includes start-ups, academic institutions, government agencies, governments, and large enterprises. Jeffrey P. Bezos founded this company in July 1994.

Financial Overview

Revenue (US$ Mn):

• Amazon.com’s annual revenue for 2021 was US$ 4,69,822 Mn, a 21.7% increase from 2020
• The annual revenue generated by Amazon.com in 2020 was US$ 3,86,064 Mn
• At a 20.45% increase, Amazon.com’s annual revenue of US$ 2,80,522 Mn was indexed in 2019
• Amazon.com generated total revenue of US$ 2,32,887 Mn in 2018

Operating Income (US$ Mn):

• US$ 24,879 Mn was Amazon.com’s operating income in 2021, an 8.65% increase from 2020 figures
• Amazon.com indexed a 57.48% increase in operating incomes from 2019, amounting to US$ 22,899 Mn in 2020
• Amazon.com generated an operating income of US$ 14,541 Mn in 2019
• An operating income of US$ 12,421 Mn was indexed by Amazon.com in 2018

Net Income (US$ Mn):

• US$ 33,364 Mn was the net income generated by Amazon.com in 2021
• Amazon.com’s net income for 2020 was US$ 21,331 Mn, an 84.08% increase from 2019
• From 2018’s net incomes, Amazon.com registered a 15.04% increase in 2019, amounting to US$ 11,588 Mn
• A net income of US$ 10,073 Mn was generated in 2018 by Amazon.com

Operating Margin %:

• Amazon.com’s operating margin for 2021 was 5%, a -10.17% decrease from 2020
• The operating margin generated by Amazon.com in 2020 was 6%
• At a -1.89% decrease, Amazon.com’s operating margin of 5% was indexed in 2019
• Amazon.com generated an operating margin of 5% in 2018

Gross Margin %:

• 14% was Amazon.com’s gross margin in 2021, a 6.02% increase from 2020 figures
• Amazon.com indexed a -3.62% decrease in gross margins from 2019, amounting to 13% in 2020
• Amazon.com generated a gross margin of 14% in 2019
• A gross margin of 13% was indexed by Amazon.com in 2018

SWOT Analysis

Strengths

Revenue growth provides financial stability

Amazon saw steady revenue growth in the last review year. The company’s FY2020 revenue was US$386,064 million, compared to US$280,522 in FY2019. This represents a 37.6% annual growth.

The increase in sales of North America, international, and AWS segments were responsible for the growth in annual revenues by 38.4% and 39.7%, respectively, compared with FY2019. A company’s strong revenue performance increases investor confidence and allows it to expand.

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