Considering all your findings using the different methods of analysis on the financial statements for Target and Amazon, which company would you more likely invest in?
Your response to this question should be 3 paragraphs:
- One paragraph summarizing key points of analysis on Target
- One paragraph summarizing key points of analysis on Amazon
- One paragraph using these results to support and rationalize your investment decision
Amazon Horizontal/Vertical Analysis Information Amazon 12/31/2018 Xchange 12/31/2017 Xchange 12/31/2016 31,750,000 55 20,522,000 6 19,334,000 57 9,500,000 16,677,000 17,174,000 75, 101,000 41 7 25 10,464,000 11,835,000 16,047,000 60,197,000 441,000 42 40 31 6,647,000 8,339,000 11,461,000 45,781,000 223,000 440,000 0 98 61,797,000 26 68 14,548,000 4,110,000 11,202,000 162,648,000 22 120 24 48,866,000 13,350,000 3,371,000 5,085, 000 131,310,000 253 295 39 57 29,114,000 3,784,000 854,000 3,646,000 83,402,000 All numbers in thousands Period Ending Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Other Assets Total Assets Current Labilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Total Liabilities Stockholders' Equity Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity 38,192,000 10 34,616,000 37 1,371,000 1,271 25,309,000 1,056,000 100,000 -91 6,586,000 -24 8,565,000 19 7,168,000 68,391,000 18 32 23,495,000 27,213,000 119,099,000 -5 249 15 57,883,000 24,743,000 7,792,000 103,601,000 222 53 62 43,816,000 7,694,000 5,088,000 64,117,000 5,000 19,625,000 -2,872,000 26,791,000 -1,085,000 43,549,000 0 127 24 25 114 57 5,000 8,636,000 -2,321,000 21,389,000 -484,000 27,709,000 0 76 -18 24 -51 44 5,000 4,916,000 -2,822,000 17,186,000 -985,000 19,285,000 Amazon Balance Sheet All numbers in thousands Period Ending 12/31/2018 12/31/2017 Somets 12/31/2016 Current Assets Cash And Cash 31,750,000 20 20,522.000 16 Equivalents 19,30,000 Short Term 9.500,000 6 10,464,000 8 Investments 6.647,000 Net Receivables 16,677,000 10 11,835,000 9 8.399,000 Inventory 17,174,000 11 16,047,000 12 11,461,000 Other Current Assets 418.000 0 1.329,000 1 Total Current Assets 75,101,000 69, 197,000 46 45,711,000 Long Term Investments 440,000 0 441,000 0 223,000 Property Plant and Equipment 61,797,000 48,864,000 37 29,114,000 Goodwill 14,548,000 9 13,350,000 10 3,784,000 Intangible Assets 4,110,000 3 3,371,000 3 854,000 Other Assets 11,202,000 7 5,085,000 4 3,646,000 Total Assets 162,648,000 100 131,319,000 100 83,402.000 Current Liabilities Accounts Payable 38, 192,000 23 34,616,000 26 25,309,000 Short/Current Long Term Debt 1,371,000 1 100,000 0 1.056,000 Other Current Uabilities 6,5%6,000 4 & 565,000 7 7,168,000 Total Current 68,391,000 42 Liabilities 57.833,000 44 43,816,000 Long Term Debt 23,495,000 14 24,743,000 19 7,694,000 Other Liabilities 27,213,000 17 7.792.000 5,038,000 Total Liabilities 119,099,000 73 103,601,000 79 64,117,000 Amazon (in thousands) 12/31/2018 % change 12/31/2017 change 12/31/2016 232,887,000 30.93 177,866,000 30.80 135,987,000 139,156,000 24.32 111,934,000 26.82 88,265,000 93,731,000 42.16 65,932,000 38.16 47,722,000 Revenue Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Non Recurring Others Total Operating Expenses Operating Income or Loss 28,837,000 27.48 52,177,000 33.81 22,620,000 40.63 38,992,000 42.91 16,065,000 27,284,000 296,000 38.32 220,466,000 26.88 12,421,000 202.51 214,000 28.14 173,760,000 31.84 4,106,000 -1.91 167,000 131,801,000 4,186,000 Amazon.com Inc., Common-Size Consolidated Income Statement 12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Net product sales 60 94% 66 66% 69.61% Net services sales 3906% 33 34% 30 3996 Net sales 100.00% 100.00% 100.00% Cost of sales -59.75% -62 93% -64 91% Gross profit 40.25% 37.07% 35.09% Fulfillment - 14.615 -14 20% -12 064 Marketing -5.93% -5.68% -5 32% Technology and content -12.38% -12.72% -11 83 General and administrative -1.86% 2.07% -1.79% Other operating expense, net -0.13% -0.12% -0.12% Operating income 5.33% 2.31% 3.08% Interest income 0.19% 0.119 0.07% Interest expense -0.619 -0.48% 0 369 Other income (expense), net -0.08% 0.19% 0.07% Non-operating Income (expense) -0.50% -0.17% -0.22% Income (loss) before income taxes 4.84% 2.14% 2.86% Provision for income taxes -0.51% -0.43% -1.05% Equity-method investment activity, net of tax 0.0096 0.00% -0.07% Net Income (loss) 4.33% 1.71% 1.74% Target Horizontal/Vertical Analysis Information Increase or Dra) Amount Percent $131.00.0 so 0.0% $0 . $348.000 4.0 $95.000 2.5% $574,000 4.6% 0.0% so $260.000 $o 0.0 0.0% $634.000 SO $1,568,000 4.0% Target Horizontal Analysis Balance Sheet https://www.nasdaq.com/symbol inancials?query-balance sheet Values in (000) Period Ending 213/2018 1/20/2017 Current Assets Cash and Cash $2.64 3.000 12.5 12.000 Short-Term 30 30 Net Receivables $0 30 Inventory $8,657,000 $8,309,000 Other Current $1.264.000 $1.169.000 Assets Total Current $12,56 4,000 $11.990.000 Long Term Assete Long-Term Investments $0 30 Fixed Assets $25.010.000 $24.650.000 Goodwill 30 Intangible Assets 10 Other Assets $1.417.000 $783.000 Deferred Asset Charges Total Assets $38.999,000 $37.431.000 Current Liabilities Accounts Payable $12.931,000 $10.989.000 Short Term Debt $270.000 11.710.000 Other Current $0 $0 Liabilities Total Current $13,201,000 $12,707,000 Long-Term Debt 111317.000 $11.031.000 Other Llabilities $2.059.000 $1,879.000 Deferred Liability Charges $713,000 $861,000 Mise Stocks $0 $0 Minority Interest 30 Total Liabilities $27.290,000 $26,478,000 Stock Holders Equity Common Stocks 145.000 $46.000 Capital Surplus $5.850.000 15,881.000 Retained Earnings 16.553.000 $5.884.000 Treasury Stock $0 $0 Other Equity $747.000) (5638.000) Total Equity $11.70 9.000 $10.952.000 Total Liabilities & Equity $38.999,000 $37,431,000 15.0% $1.942.000 151.448.000 SO 0.0% 3.7% 2.526 $494,000 $286.000 $120.000 ($148,000) so So $812,000 -20.8% 0.0% -2.25 $1.000 $197.000 $669.000 SO $109.0001 S756.000 $1,568,000 10.25 O.ON 14.626 6.58 4.0 Target Horizontal Analysis - Income Statement https://www.nasdaq.com/symbol/tg/financials?query=income statement Values in (000s) Period Ending 2018 12/2017 Increase Decrease Current Assets Around Perce Total Reverse ST1879000 495.000 $2.184.000 3.3% Cestoffer 351.120.000 13.145.000 $1.000.000 29 Gres Prah 520,754,000 570,350,000 $104.000 1.9% 0.0% $o $32.000 Operating Expenses Research and Development Sales, General and A Non-Recurringerne Other Operating er Operating ineer Add incomexpensers Barrings Before Interest and Tax interest Expense Earrings Before Tax Income Tax Minority interest Equity Earrings Loss Uncalidated Subsidiary Net Income-Cont. Operations Ne treene Net Income Applicable to Corwenen Shareholders SO 30 514.248.000 $13.356.000 30 52,194.000 $2.025,000 54,312,000 $4.968,000 30 30 54.312,000 $4.999.000 $666.000 $1.004000 $3,646,000 $3.965.000 5718,000 $1.296,000 $169,000 -5657,000 -5657,000 -$338,000 $319,000 $578.000 $0 0.0% 7.7% -15.2% CON -15.2% -50.8 -8.7% -30.5% 0.0% QOX 52.928,000 52.669.000 $2,034,000 52.737.000 $2,934,000 $2,737,000 $259.000 $197,000 $197.000 6.7% Target Vertical Analysis - Income Statement https://www.nasdaq.com/symbol/txt/financials query income-statement Values in (000s) Period Ending 2012018 120.2017 Current Assets Total Revenue Cost of Revenue Gross Pro 571,879.000 551.125.000 520,754,000 100 CON $69.000 100.00% 71.13% $49.145.000 70.77% 20.87 $20.350,000 29 29% 30 $13,356.000 0.00% 19.82% 0.00 3.05 6.OON 0.00% Operating Expenses Research and Development 40 Sales General and Admin $14,248.000 Non-Recurring Hems so Other Operating Items $2.194,000 Operating income $4.312,000 Adan incompense em s $0 Earnings Before terest and Tax $4.312,000 Arterest Expense $666.000 Earnings Before Tax $3,646,000 Income Tax $718.000 Mnenty interest $0 Equity CamingaLoss Unconsolidated Subsidiary $0 Net income-Cont. Operations $2.928.000 Net Income 32.934.000 Net Income Applicable to common Shareholders $2.934.000 $2.025,000 $4.969,000 50 $4,969,000 $1,004,000 $3.965,000 $1.295,000 SO 0.00 19.22% 0.00% 2.91% 7.15% 0.00N 7.15% 1.44% 5.71% 1.86% 0.00 0.00 3.84% 0901 5.07% 1.00% 0.00% 0.00 4.07% 4.00% 52.669.000 52.737.000 $2,737.000 Target Vertical Analysis - Balance Sheet https://www.nasdaq.com/symbol/txt/financials?query balance sheet Values in (000) Period Ending 2002010 128.2017 Current Assets Cash and Cash Equivalents $26413,000 $2,512,000 6.7% Short-Term Investments 0.0% 30 Net Receivables $0 00% 30 00% Inventory $8,857,000 22.2% $8,309,000 222% Other Current Assets $1.261.000 3.2% 11.169.000 3.1% Total Current Assets $12,564,000 322% $11.990,000 32.0% Long-Term Assets Long-Term Investments $0 00% $0 0.0% Rxed Assets $25018.000 $24,658.000 65.9% Goodw $0 0.0% $0 0.0% Intangible Assets 30 00% $0 0.0% Other Assets $1417.000 $783,000 2.1% Deferred Asset Charges $0 Total Assets $38,999,000 100.0% $37431,000 100.0% Current Liabilities Accounts Payable Short-Term Debt Current Other Current Liabilities Total Current Liabilities 33.2% 0.7% $12.931,000 $270,000 10 $13,20 1,000 $10.989,000 $1,718,000 10 $12,707,000 29.4% 4.6% 0.0% 33.9% Long-Term Debt Other Liabilities Deferred Uability Charges Misc. Stock Minority interest Total abilities $11,317,000 $2,050,000 $713,000 $0 5.3% 18% 00% $11,031,000 $1,879,000 $861,000 10 10 29.5% 5.0% 2.3% 0.0% 0.0% $27,290,000 70.0% $26 478,000 70.7% Stock Holders Equity Common Stocks Capital Surplus Retained Earning Treasury Stock Other Equity Total Equity 145,000 $5,858,000 $6,553,000 $0 (1747,000) 11.709,000 01% 15.0% 16 8% 00% -1.9% 146,000 $5,661,000 35,884,000 $0 (1638.000 $10.963.000 0.1% 15.1% 15.7% 0.0% -17% 29.3% Total abilities & Equity $38.999,000 100 0% $37 431.000 100.0% Amazon Horizontal/Vertical Analysis Information Amazon 12/31/2018 Xchange 12/31/2017 Xchange 12/31/2016 31,750,000 55 20,522,000 6 19,334,000 57 9,500,000 16,677,000 17,174,000 75, 101,000 41 7 25 10,464,000 11,835,000 16,047,000 60,197,000 441,000 42 40 31 6,647,000 8,339,000 11,461,000 45,781,000 223,000 440,000 0 98 61,797,000 26 68 14,548,000 4,110,000 11,202,000 162,648,000 22 120 24 48,866,000 13,350,000 3,371,000 5,085, 000 131,310,000 253 295 39 57 29,114,000 3,784,000 854,000 3,646,000 83,402,000 All numbers in thousands Period Ending Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Other Assets Total Assets Current Labilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Total Liabilities Stockholders' Equity Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity 38,192,000 10 34,616,000 37 1,371,000 1,271 25,309,000 1,056,000 100,000 -91 6,586,000 -24 8,565,000 19 7,168,000 68,391,000 18 32 23,495,000 27,213,000 119,099,000 -5 249 15 57,883,000 24,743,000 7,792,000 103,601,000 222 53 62 43,816,000 7,694,000 5,088,000 64,117,000 5,000 19,625,000 -2,872,000 26,791,000 -1,085,000 43,549,000 0 127 24 25 114 57 5,000 8,636,000 -2,321,000 21,389,000 -484,000 27,709,000 0 76 -18 24 -51 44 5,000 4,916,000 -2,822,000 17,186,000 -985,000 19,285,000 Amazon Balance Sheet All numbers in thousands Period Ending 12/31/2018 12/31/2017 Somets 12/31/2016 Current Assets Cash And Cash 31,750,000 20 20,522.000 16 Equivalents 19,30,000 Short Term 9.500,000 6 10,464,000 8 Investments 6.647,000 Net Receivables 16,677,000 10 11,835,000 9 8.399,000 Inventory 17,174,000 11 16,047,000 12 11,461,000 Other Current Assets 418.000 0 1.329,000 1 Total Current Assets 75,101,000 69, 197,000 46 45,711,000 Long Term Investments 440,000 0 441,000 0 223,000 Property Plant and Equipment 61,797,000 48,864,000 37 29,114,000 Goodwill 14,548,000 9 13,350,000 10 3,784,000 Intangible Assets 4,110,000 3 3,371,000 3 854,000 Other Assets 11,202,000 7 5,085,000 4 3,646,000 Total Assets 162,648,000 100 131,319,000 100 83,402.000 Current Liabilities Accounts Payable 38, 192,000 23 34,616,000 26 25,309,000 Short/Current Long Term Debt 1,371,000 1 100,000 0 1.056,000 Other Current Uabilities 6,5%6,000 4 & 565,000 7 7,168,000 Total Current 68,391,000 42 Liabilities 57.833,000 44 43,816,000 Long Term Debt 23,495,000 14 24,743,000 19 7,694,000 Other Liabilities 27,213,000 17 7.792.000 5,038,000 Total Liabilities 119,099,000 73 103,601,000 79 64,117,000 Amazon (in thousands) 12/31/2018 % change 12/31/2017 change 12/31/2016 232,887,000 30.93 177,866,000 30.80 135,987,000 139,156,000 24.32 111,934,000 26.82 88,265,000 93,731,000 42.16 65,932,000 38.16 47,722,000 Revenue Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Non Recurring Others Total Operating Expenses Operating Income or Loss 28,837,000 27.48 52,177,000 33.81 22,620,000 40.63 38,992,000 42.91 16,065,000 27,284,000 296,000 38.32 220,466,000 26.88 12,421,000 202.51 214,000 28.14 173,760,000 31.84 4,106,000 -1.91 167,000 131,801,000 4,186,000 Amazon.com Inc., Common-Size Consolidated Income Statement 12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Net product sales 60 94% 66 66% 69.61% Net services sales 3906% 33 34% 30 3996 Net sales 100.00% 100.00% 100.00% Cost of sales -59.75% -62 93% -64 91% Gross profit 40.25% 37.07% 35.09% Fulfillment - 14.615 -14 20% -12 064 Marketing -5.93% -5.68% -5 32% Technology and content -12.38% -12.72% -11 83 General and administrative -1.86% 2.07% -1.79% Other operating expense, net -0.13% -0.12% -0.12% Operating income 5.33% 2.31% 3.08% Interest income 0.19% 0.119 0.07% Interest expense -0.619 -0.48% 0 369 Other income (expense), net -0.08% 0.19% 0.07% Non-operating Income (expense) -0.50% -0.17% -0.22% Income (loss) before income taxes 4.84% 2.14% 2.86% Provision for income taxes -0.51% -0.43% -1.05% Equity-method investment activity, net of tax 0.0096 0.00% -0.07% Net Income (loss) 4.33% 1.71% 1.74% Target Horizontal/Vertical Analysis Information Increase or Dra) Amount Percent $131.00.0 so 0.0% $0 . $348.000 4.0 $95.000 2.5% $574,000 4.6% 0.0% so $260.000 $o 0.0 0.0% $634.000 SO $1,568,000 4.0% Target Horizontal Analysis Balance Sheet https://www.nasdaq.com/symbol inancials?query-balance sheet Values in (000) Period Ending 213/2018 1/20/2017 Current Assets Cash and Cash $2.64 3.000 12.5 12.000 Short-Term 30 30 Net Receivables $0 30 Inventory $8,657,000 $8,309,000 Other Current $1.264.000 $1.169.000 Assets Total Current $12,56 4,000 $11.990.000 Long Term Assete Long-Term Investments $0 30 Fixed Assets $25.010.000 $24.650.000 Goodwill 30 Intangible Assets 10 Other Assets $1.417.000 $783.000 Deferred Asset Charges Total Assets $38.999,000 $37.431.000 Current Liabilities Accounts Payable $12.931,000 $10.989.000 Short Term Debt $270.000 11.710.000 Other Current $0 $0 Liabilities Total Current $13,201,000 $12,707,000 Long-Term Debt 111317.000 $11.031.000 Other Llabilities $2.059.000 $1,879.000 Deferred Liability Charges $713,000 $861,000 Mise Stocks $0 $0 Minority Interest 30 Total Liabilities $27.290,000 $26,478,000 Stock Holders Equity Common Stocks 145.000 $46.000 Capital Surplus $5.850.000 15,881.000 Retained Earnings 16.553.000 $5.884.000 Treasury Stock $0 $0 Other Equity $747.000) (5638.000) Total Equity $11.70 9.000 $10.952.000 Total Liabilities & Equity $38.999,000 $37,431,000 15.0% $1.942.000 151.448.000 SO 0.0% 3.7% 2.526 $494,000 $286.000 $120.000 ($148,000) so So $812,000 -20.8% 0.0% -2.25 $1.000 $197.000 $669.000 SO $109.0001 S756.000 $1,568,000 10.25 O.ON 14.626 6.58 4.0 Target Horizontal Analysis - Income Statement https://www.nasdaq.com/symbol/tg/financials?query=income statement Values in (000s) Period Ending 2018 12/2017 Increase Decrease Current Assets Around Perce Total Reverse ST1879000 495.000 $2.184.000 3.3% Cestoffer 351.120.000 13.145.000 $1.000.000 29 Gres Prah 520,754,000 570,350,000 $104.000 1.9% 0.0% $o $32.000 Operating Expenses Research and Development Sales, General and A Non-Recurringerne Other Operating er Operating ineer Add incomexpensers Barrings Before Interest and Tax interest Expense Earrings Before Tax Income Tax Minority interest Equity Earrings Loss Uncalidated Subsidiary Net Income-Cont. Operations Ne treene Net Income Applicable to Corwenen Shareholders SO 30 514.248.000 $13.356.000 30 52,194.000 $2.025,000 54,312,000 $4.968,000 30 30 54.312,000 $4.999.000 $666.000 $1.004000 $3,646,000 $3.965.000 5718,000 $1.296,000 $169,000 -5657,000 -5657,000 -$338,000 $319,000 $578.000 $0 0.0% 7.7% -15.2% CON -15.2% -50.8 -8.7% -30.5% 0.0% QOX 52.928,000 52.669.000 $2,034,000 52.737.000 $2,934,000 $2,737,000 $259.000 $197,000 $197.000 6.7% Target Vertical Analysis - Income Statement https://www.nasdaq.com/symbol/txt/financials query income-statement Values in (000s) Period Ending 2012018 120.2017 Current Assets Total Revenue Cost of Revenue Gross Pro 571,879.000 551.125.000 520,754,000 100 CON $69.000 100.00% 71.13% $49.145.000 70.77% 20.87 $20.350,000 29 29% 30 $13,356.000 0.00% 19.82% 0.00 3.05 6.OON 0.00% Operating Expenses Research and Development 40 Sales General and Admin $14,248.000 Non-Recurring Hems so Other Operating Items $2.194,000 Operating income $4.312,000 Adan incompense em s $0 Earnings Before terest and Tax $4.312,000 Arterest Expense $666.000 Earnings Before Tax $3,646,000 Income Tax $718.000 Mnenty interest $0 Equity CamingaLoss Unconsolidated Subsidiary $0 Net income-Cont. Operations $2.928.000 Net Income 32.934.000 Net Income Applicable to common Shareholders $2.934.000 $2.025,000 $4.969,000 50 $4,969,000 $1,004,000 $3.965,000 $1.295,000 SO 0.00 19.22% 0.00% 2.91% 7.15% 0.00N 7.15% 1.44% 5.71% 1.86% 0.00 0.00 3.84% 0901 5.07% 1.00% 0.00% 0.00 4.07% 4.00% 52.669.000 52.737.000 $2,737.000 Target Vertical Analysis - Balance Sheet https://www.nasdaq.com/symbol/txt/financials?query balance sheet Values in (000) Period Ending 2002010 128.2017 Current Assets Cash and Cash Equivalents $26413,000 $2,512,000 6.7% Short-Term Investments 0.0% 30 Net Receivables $0 00% 30 00% Inventory $8,857,000 22.2% $8,309,000 222% Other Current Assets $1.261.000 3.2% 11.169.000 3.1% Total Current Assets $12,564,000 322% $11.990,000 32.0% Long-Term Assets Long-Term Investments $0 00% $0 0.0% Rxed Assets $25018.000 $24,658.000 65.9% Goodw $0 0.0% $0 0.0% Intangible Assets 30 00% $0 0.0% Other Assets $1417.000 $783,000 2.1% Deferred Asset Charges $0 Total Assets $38,999,000 100.0% $37431,000 100.0% Current Liabilities Accounts Payable Short-Term Debt Current Other Current Liabilities Total Current Liabilities 33.2% 0.7% $12.931,000 $270,000 10 $13,20 1,000 $10.989,000 $1,718,000 10 $12,707,000 29.4% 4.6% 0.0% 33.9% Long-Term Debt Other Liabilities Deferred Uability Charges Misc. Stock Minority interest Total abilities $11,317,000 $2,050,000 $713,000 $0 5.3% 18% 00% $11,031,000 $1,879,000 $861,000 10 10 29.5% 5.0% 2.3% 0.0% 0.0% $27,290,000 70.0% $26 478,000 70.7% Stock Holders Equity Common Stocks Capital Surplus Retained Earning Treasury Stock Other Equity Total Equity 145,000 $5,858,000 $6,553,000 $0 (1747,000) 11.709,000 01% 15.0% 16 8% 00% -1.9% 146,000 $5,661,000 35,884,000 $0 (1638.000 $10.963.000 0.1% 15.1% 15.7% 0.0% -17% 29.3% Total abilities & Equity $38.999,000 100 0% $37 431.000 100.0%
