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Analyze the performance of the Amazon over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios
Analyze the performance of the Amazon over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier.
| 2017 | ||||||
| Ratio Calculations | Equations | |||||
| Current ratio | 60,197,000 | / | 57,883,000 | = | 1.04 | current assets / current liabilities |
| Debt/equity ratio | 103,601,000 | / | 27,709,000 | = | 373.9% | total liabilities / total equity |
| Free cash flow | 18,434,000 | - | 27,819,000 | = | $ (9,385,000) | total operating cash flow - capital expenditures |
| Earnings per share | 3,033,000 | / | 480,000 | = | $ 6.32 | net income / common shares outstanding |
| Price/earnings ratio | 1169.47 | / | 6.32 | = | 185.04 | stock price / earnings per share |
| Return on equity | 3,033,000 | / | 27,709,000 | = | 10.9% | net income / total equity |
| Net profit margin | 3,030,000 | / | 177,866,000 | = | 1.7% | net income / total revenue |
| 2016 | ||||||
| Ratio Calculations | Equations | |||||
| Current ratio | 45,781,000 | / | 43,816,000 | = | 1.04 | current assets / current liabilities |
| Debt/equity ratio | 64,117,000 | / | 19,285,000 | = | 332.5% | total liabilities / total equity |
| Free cash flow | 16,443,000 | - | 6,737,000 | = | $ 9,706,000 | total operating cash flow - capital expenditures |
| Earnings per share | 2,371,000 | / | 474,000 | = | $ 5.00 | net income / common shares outstanding |
| Price/earnings ratio | 749.87 | / | 5.00 | = | 149.97 | stock price / earnings per share |
| Return on equity | 2,371,000 | / | 19,285,000 | = | 12.3% | net income / total equity |
| Net profit margin | 2,371,000 | / | 135,987,000 | = | 1.7% | net income / total revenue |
| 2015 | ||||||
| Ratio Calculations | Equations | |||||
| Current ratio | 36,474,000 | / | 33,899,000 | = | 1.08 | current assets / current liabilities |
| Debt/equity ratio | 52,060,000 | / | 13,384,000 | = | 389.0% | total liabilities / total equity |
| Free cash flow | 11,920,000 | - | 4,589,000 | = | $ 7,331,000 | total operating cash flow - capital expenditures |
| Earnings per share | 596,000 | / | 467,000 | = | $ 1.28 | net income / common shares outstanding |
| Price/earnings ratio | 675.89 | / | 1.28 | = | 528.04 | stock price / earnings per share |
| Return on equity | 596,000 | / | 13,384,000 | = | 4.5% | net income / total equity |
| Net profit margin | 596,000 | / | 107,006,000 | = | 0.6% | net income / total revenue |
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Finance
Authors: Angelico Groppelli, Ehsan Nikbakht
7th Edition
1438010362, 9781438010366
