2024-04-02 15:58:16 ET
Summary
- Amazon.com, Inc.'s ROIC has returned to positive territory, settling at 12.99% with a 3-year median of 10.91%.
- The effective tax rate and net income have impacted Amazon's capital efficiency and growth.
- Amazon's liquidity is strong, with an interest coverage ratio of 174x, surpassing the average for non-bank companies in the S&P 500.
The Amazon Investment Thesis
Since the last time I wrote about Amazon.com, Inc. (AMZN), the company has outperformed the S&P 500 Index (SP500) by nearly twice as much. At the time, I wrote that ROIC was rising and would likely return to its former strength. This has been confirmed and the positive trend seems to be continuing....
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Amazon Stock: Better Than The Numbers Suggest At First Glance