A Look Into Amazon.com's Debt

published 27.07.2020 15:17

Amazon.com's Debt Based on Amazon.com’s financial statement as of May 1, 2020, long-term debt is at $23.44 billion and current debt is at $1.31 billion, amounting to $24.75 billion in total debt.

Investors look at the debt-ratio to understand how much financial leverage a company has.

Generally speaking, a debt-ratio more than 1 means that a large portion of debt is funded by assets.

Why Debt Is Important Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth.

Having financial leverage also allows companies to use additional capital for business operations, allowing equity owners to retain excess profit, generated by the debt capital.

by Benzinga Insights from feeds.benzinga.com

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