Question
Amazon.com is a multinational e-commerce company that earns revenues from the sale of books, e-books, music, software, electronics, and other consumer goods. The following information
Amazon.com is a multinational e-commerce company that earns revenues from the sale of books, e-books, music, software, electronics, and other consumer goods. The following information is taken from the 2016 annual report for Amazon.com:
In Millions 2016 2015
Net Sales $135,987 $107,006
Interest before income and taxes 4,376 2,027
Net income/ (loss) 2,371 596
Interest expense 484 459
Stockholders equity (on December 31st, 2014, $10,741) 19,285 13,384
Common stock, par value $0.01, December 31 5 5
Shares of common stock 477 471
-I need help computing common stock, Net income of net sales, Net income to average common stakeholders equity, and times interest earned ratio for both 2015 and 2016. I am not sure what to do for this.
-Once everything is computed, how would I tell what those numbers mean? For example, if the numbers from 2016 are higher than 2015, does that mean that Amazon is becoming more profitable?
Thank you for your help!
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