1 minute read

Amazon’s tiny profits, explained

About Makeover Monday

MakeoverMonday is a social data project: “Each week we post a link to a chart, and its data, and then you rework the chart. Maybe you retell the story more effectively, or find a new story in the data. We’re curious to see the different approaches you all take. Whether it’s a simple bar chart or an elaborate infographic, we encourage everyone of all skills to partake. Together we can have broader conversations about and with data.”

Starting from Jan 08, 2018, I decided to put aside one hour on Monday weekly to create some visualization and find some insights from the data.

The datasets are published each week at: MakeoverMonday Datasets.

Makeover Monday 20200622

This week’s visualization is about Amazon’s revenue and net income. I highly recommend reading the original article as it clearly explained what is the difference among revenue, profit, and free cash flow, and why Amazon’s tiny profit (comparing to its revenue) is not necessarily a bad thing.

My Visualization

This week, I am creating simple line charts with text on it to convey the ideas clearly.

Please notice that all the visualizations are designed for desktop view, so it is recommended to view them on a desktop device.

Insights

  • Amazon’s revenue has very clear seaonality –Q4 is always the highest of the year due to holiday season, then drop in Q1, climb up in Q2 and Q3;
  • But year over year, Amazon’s revenue has been every climbing, which generates substainable free cash flow.

Follow this link to find more weekly vizzes :)