Busa 4980

1. Using the data provided in the Exhibit below, please calculate the following ratios for Amazon in fiscal year 2014 and 2018. Has performance largely improved or declined?

1. Operating profit margin
2. Net profit margin
3. Return on stockholders equity
4. Current ratio
5. Debt-to-equity ratio
6. CAGR in Revenue over the period 2014 to 2018

2. Based on the case study, what element(s) of Amazons Kindle strategy would you adapt? Please describe initiatives you think the company should take to address its issues.

EXHIBIT: Amazon - Income Statement Income Statement Revenue Cost of sales Gross profit Fulfillment Marketing Technology & content General & admin. Other operating Operating income Interest, net Other, net Income before tax Income tax 2018 31/12/2018 232,887 139,156 93,731 34,027 13,814 28,837 4,336 296 12,421 (977) (183) 11,261 1,188 10,073 2017 31/12/2017 177,866 111,934 65,932 25,249 10,069 22,260 - 3,674 574 4,106 1 (646) 346 3,806 773 3,033 2016 31/12/2016 135,987 88,265 47,722 17,619 7,233 16,085 2,432 167 4,186 (384) 90 3,892 1,521 2,371 2015 31/12/2015 107,006 71,651 35,355 13,410 5,254 12,540 1,747 171 2,233 (409) (256) 1,568 972 596 2014 31/12/2014 88,988 62,752 26,236 10,766 4,332 9,275 1,552 133 178 (171) (118) (111) 130 (241) Net Income EXHIBIT: Amazon - Balance Sheet 2018 41,250 16,677 17,174 2017 30,986 13,164 16,047 2016 25,981 8,339 11,461 2015 19,808 5,654 10,243 2014 17,416 5,612 8,299 Balance Sheet Cash & ST Investments Receivables (Net) Inventories - Total Other Current Assets Total Current Assets PPE, Net Other Assets Total Assets Accounts Payable ST Debt Other current liabilities Total Current Liabilities Long Term Debt Other liabilities Total Liabilities Total Shareholders Equty 75,101 61,797 25,750 162,648 38,192 60,197 48,866 22,247 131,310 34,616 35,705 21,838 7,204 64,747 20,397 30,199 23,267 68,391 57,883 23,495 24,743 27,213 20,975 119,099 103,601 43,549 27,709 45,781 29,114 8,507 83,402 25,309 5,197 13,310 43,816 15,213 5,088 64,117 19,285 13,490 33,887 14,175 3,301 51,363 13,384 31,327 16,967 6,211 54,505 16,459 1,520 10,110 28,089 12,489 3,186 43,764 10,741