AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data) (slightly modified)
		Year Ended December 31,
	2015	2016
Net product sales	79,268	94,665
Net service sales	27,738	41,322
Total net sales	107,006	135,987
Operating expenses:
Cost of sales	(71,651)	(88,265)
Fulfillment	(13,410)	(17,619)
Marketing	(5,254)	(7,233)
Technology and content	(12,540)	(16,085)
General and administrative	(1,747)	(2,432)
Other operating expense, net	(171)	(167)
Total operating expenses	(104,773)	(131,801)
Operating income	2,233	4,186
Interest income	50	100
Interest expense	(459)	(484)
Other income (expense), net	(256)	90
Total non-operating income (expense)	(665)	(294)
Income (loss) before income taxes	1,568	3,892
Provision for income taxes	(950)	(1,425)
Equity-method investment activity, net of tax	(22)	(96)	Treat this as an operating item.
Net income (loss)	596	2,371
AMAZON.COM, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data) (slightly modified)
December 31,	2015	2016
ASSETS
Current assets:
Cash and cash equivalents	15,890	19,334
Marketable securities	3,918	6,647
Inventories	10,243	11,461
Accounts receivable, net and other	5,654	8,339
Total current assets	35,705	45,781
Property and equipment, net	21,838	29,114
Goodwill	3,759	3,784	Treat this as an operating item.
Deferred taxes	2,343	3,074
Other assets	1,102	1,649
Total assets	64,747	83,402
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable	20,397	25,309
Accrued expenses and other	10,372	13,739
Unearned revenue	3,118	4,768	Treat this as an operating item.
Total current liabilities	33,887	43,816
Long-term debt	8,227	7,694
Deferred taxes	2,261	2,620
Other long-term liabilities	6,988	9,987
Commitments and contingencies (Note 7)
Stockholders equity:
Preferred stock, $0.01 par value: Issued and outstanding shares none
Common stock, $0.01 par value:
Authorized shares 5,000
Issued shares 494 and 500
Outstanding shares 471 and 477	5	5
Treasury stock, at cost	(1,837)	(1,837)
Additional paid-in capital	13,394	17,186
Accumulated other comprehensive loss	(723)	(985)
Retained earnings	2,545	4,916
Total stockholders equity	13,384	19,285
Total liabilities and stockholders equity	64,747	83,402

What was Amazon's free cash flow (FCF) in 2016, you should find that Amazon's NOPAT in 2016 was $2,175. Using that number, compute the company's ROIC and Amazon's profit margin is very small. Does this mean the company is not performing well? Compute Amazon's EVA, assuming a WACC of 12%..