Amazon's Margin Room to Unlock Billions in Operating Income

Amazon.com, Inc.'s (NASDAQ:AMZN) operating income has room for improvement, and its North American and international segments generated a combined $158.4 billion of second-quarter revenue with an approximately 6.8% combined margin.

A one-percentage-point increase in the combined margin would add about $1.584 billion of quarterly operating income, according to calculations by Insider Monkey.

The larger North American base contributes more dollars per margin point, even if the international segment appears to have more percentage-point room for improvement.

Amazon's trailing operating cash flow reached $161.4 billion while company-defined free cash flow was negative $7.6 billion as investment spending rose.