Directions Ratio Calculation, use formulas to calculate the following financial indicators for each year of data o Current ratio o Debt equity ratio o Free cash flow o Earnings per share o Price earnings ratio o Return on equity o Net profit margin o Describe how and why each of the ratios has changed over the three year period For example, did the current ratio increase or decrease Why Describe how three of the ratios you calculated for your company compare to the general industry Find general industry data by entering your specific companys ticker symbol here Be sure to watch the Mergent Online video (written instructions can be found here), as it will help you find the industry data Below is Amazons balance heet for 2017 Amazon com Inc (NMS AMZN) Exchange rate used is that of the Year End reported date As Reported Annual Balance Sheet Report Date 12 31 2017 Currency USD Audit Status Not Qualified Consolidated Yes Scale Thousands Cash cash equivalents 20522000 Marketable securities 10464000 Inventories 16047000 Accounts receivable, net other current assets, gross Less Allowance for doubtful accounts receivable Accounts receivable, net other current assets, net 13164000 Total current assets 60197000 Land buildings 23718000 Equipment internal use software 38387000 Other corporate assets 2390000 Construction in progress 4078000 Gross property equipment 68573000 Less accumulated depreciation 19707000 Property equipment, net 48866000 Goodwill 13350000 Other assets 8897000 Total assets 131310000 Accounts payable 34616000 Accrued expenses other current liabilities 18170000 Unearned revenue 5097000 Total current liabilities 57883000 Long term debt 24743000 Long term capital lease obligations 8438000 Long term financing lease obligations 4745000 Construction liability 1350000 Tax contingencies 1004000 Long term deferred tax liabilities 990000 Other long term liabilities 4448000 Other long term liabilities 20975000 Common stock 5000 Treasury stock, at cost 1837000 Additional paid in capital 21389000 Foreign currency translation adjustments, net of tax 468000 Unrealized gains (loss) on available for sale securities, net of tax 16000 Accumulated other comprehensive income (loss) 484000 Retained earnings (accumulated deficit) 8636000 Total stockholders' equity (deficit) 27709000 Below is Amazons income statment for 2017 Amazon com Inc (NMS AMZN) Exchange rate used is that of the Year End reported date As Reported Annual Income Statement Report Date 12 31 2017 Currency USD Audit Status Not Qualified Consolidated Yes Scale Thousands Net product sales 118573000 Net services sales 59293000 Total net sales 177866000 Cost of sales 111934000 Fulfillment expenses 25249000 Marketing expenses 10069000 Technology content expenses 22620000 General administrative expenses 3674000 Other operating expense (income), net 214000 Total operating expenses costs 173760000 Income from operations 4106000 Interest income 202000 Interest expense 848000 Other income (expense), net 346000 Total non operating income (expenses) 300000 Income (loss) bef income taxes United States 5630000 Income (loss) before income taxes International 1824000 Income (loss) before income taxes 3806000 Current income taxes U S federal 137000 Current income taxes U S state 211000 Current income taxes international 724000 Total current income taxes 798000 Deferred income taxes U S federal 202000 Deferred income taxes U S state 26000 Deferred income taxes international 199000 Total deferred income taxes 29000 Provision (benefit) for income taxes 769000 Equity method investment activity, net of tax 4000 Net income (loss) 3033000 Weighted average shares outstanding basic 480000 Weighted average shares outstanding diluted 493000 Year end shares outstanding 484000 Net income (loss) per share basic 6 32 Net income (loss) per share diluted 6 15 Total number of employees 566000 Number of common stockholders 2357 Foreign currency translation adjustments 533000 Below is Amazons Cash Flow for 2017 Amazon com Inc (NMS AMZN) Exchange rate used is that of the Year End reported date As Reported Annual Cash Flow Report Date 12 31 2017 Currency USD Audit Status Not Qualified Consolidated Yes Scale Thousands Cash cash equivalents, beginning of period 19334000 Net income (loss) 3033000 Depreciation of property equipment, including internal use software website development, other amortization 11478000 Stock based compensation 4215000 Other operating expense (income), net 202000 Losses (gains) on sales of marketable securities, net Other expense (income), net 292000 Deferred income taxes 29000 Excess tax benefits from stock based compensation Inventories 3583000 Accounts receivable, net other current assets 4786000 Accounts payable 7175000 Accrued expenses other liabilities 283000 Additions to unearned revenue 738000 Amortization of previously unearned revenue Net cash flows from operating activities 18434000 Purchases of property equipment, including internal use software website development 11955000 Proceeds from property equipment incentives 1897000 Acquisitions, net of cash acquired, other investing activities 13972000 Sales maturities of marketable securities 9988000 Sales maturities of marketable securities other investments Purchases of marketable securities 13777000 Purchases of marketable securities other investments Net cash flows from investing activities 27819000 Excess tax benefits from stock based compensation Proceeds from long term debt other financing activities 16231000 Repayment of long term debt Repayments of long term debt other financing activities 1372000 Principal repayments of capital lease obligations 4799000 Principal repayments of finance lease obligations 200000 Net cash flows from financing activities 9860000 Foreign currency effect on cash cash equivs 713000 Net increase (decrease) in cash cash equivalents 1188000 Cash cash equivalents, end of year 20522000 Cash paid for interest Cash paid for interest on long term debt 328000 Cash paid for interest on capital finance lease obligations 319000 Cash paid for income taxes 957000 2017 Ratio Calculations Equations Current ratio DIV 0 current assets current liabilities Debt equity ratio DIV 0 total liabilities total equity Free cash flow $ total operating cash flow capital expenditures Earnings per share DIV 0 net income common shares outstanding Price earnings ratio DIV 0 stock price earnings per share Return on equity DIV 0 net income total equity Net profit margin DIV 0 net income total revenue

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Directions: Ratio Calculation, use formulas to calculate the following financial indicators for each year of data: o Current ratio o Debt/equity ratio o Free cash

Directions: Ratio Calculation, use formulas to calculate the following financial indicators for each year of data:

o Current ratio

o Debt/equity ratio

o Free cash flow

o Earnings per share

o Price/earnings ratio

o Return on equity

o Net profit margin

o Describe how and why each of the ratios has changed over the three-year period. For example, did the current ratio increase or decrease? Why? Describe how three of the ratios you calculated for your company compare to the general industry. Find general industry data by entering your specific companys ticker symbol here. Be sure to watch the Mergent Online video (written instructions can be found here), as it will help you find the industry data

Below is Amazons balance heet for 2017 Amazon.com Inc (NMS: AMZN)

Exchange rate used is that of the Year End reported date


As Reported Annual Balance Sheet
Report Date	12/31/2017
Currency	USD
Audit Status	Not Qualified
Consolidated	Yes
Scale	Thousands
Cash & cash equivalents	20522000
Marketable securities	10464000
Inventories	16047000
Accounts receivable, net & other current assets, gross	-
Less: Allowance for doubtful accounts receivable	-
Accounts receivable, net & other current assets, net	13164000
Total current assets	60197000
Land & buildings	23718000
Equipment & internal-use software	38387000
Other corporate assets	2390000
Construction in progress	4078000
Gross property & equipment	68573000
Less accumulated depreciation	19707000
Property & equipment, net	48866000
Goodwill	13350000
Other assets	8897000
Total assets	131310000
Accounts payable	34616000
Accrued expenses & other current liabilities	18170000
Unearned revenue	5097000
Total current liabilities	57883000
Long-term debt	24743000
Long-term capital lease obligations	8438000
Long-term financing lease obligations	4745000
Construction liability	1350000
Tax contingencies	1004000
Long-term deferred tax liabilities	990000
Other long-term liabilities	4448000
Other long-term liabilities	20975000
Common stock	5000
Treasury stock, at cost	1837000
Additional paid-in capital	21389000
Foreign currency translation adjustments, net of tax	-468000
Unrealized gains (loss) on available-for-sale securities, net of tax	-16000
Accumulated other comprehensive income (loss)	-484000
Retained earnings (accumulated deficit)	8636000
Total stockholders' equity (deficit)	27709000

Below is Amazons income statment for 2017

Amazon.com Inc (NMS: AMZN)

Exchange rate used is that of the Year End reported date


As Reported Annual Income Statement
Report Date	12/31/2017
Currency	USD
Audit Status	Not Qualified
Consolidated	Yes
Scale	Thousands
Net product sales	118573000
Net services sales	59293000
Total net sales	177866000
Cost of sales	111934000
Fulfillment expenses	25249000
Marketing expenses	10069000
Technology & content expenses	22620000
General & administrative expenses	3674000
Other operating expense (income), net	214000
Total operating expenses & costs	173760000
Income from operations	4106000
Interest income	202000
Interest expense	848000
Other income (expense), net	346000
Total non-operating income (expenses)	-300000
Income (loss) bef income taxes- United States	5630000
Income (loss) before income taxes - International	-1824000
Income (loss) before income taxes	3806000
Current income taxes - U.S. federal	-137000
Current income taxes - U.S. state	211000
Current income taxes - international	724000
Total current income taxes	798000
Deferred income taxes - U.S. federal	-202000
Deferred income taxes - U.S. state	-26000
Deferred income taxes - international	199000
Total deferred income taxes	-29000
Provision (benefit) for income taxes	769000
Equity-method investment activity, net of tax	-4000
Net income (loss)	3033000
Weighted average shares outstanding-basic	480000
Weighted average shares outstanding-diluted	493000
Year end shares outstanding	484000
Net income (loss) per share-basic	6.32
Net income (loss) per share-diluted	6.15
Total number of employees	566000
Number of common stockholders	2357
Foreign currency translation adjustments	533000

Below is Amazons Cash Flow for 2017

Amazon.com Inc (NMS: AMZN)

Exchange rate used is that of the Year End reported date


As Reported Annual Cash Flow
Report Date	12/31/2017
Currency	USD
Audit Status	Not Qualified
Consolidated	Yes
Scale	Thousands
Cash & cash equivalents, beginning of period	19334000
Net income (loss)	3033000
Depreciation of property & equipment, including internal-use software & website development, & other amortization	11478000
Stock-based compensation	4215000
Other operating expense (income), net	202000
Losses (gains) on sales of marketable securities, net	-
Other expense (income), net	-292000
Deferred income taxes	-29000
Excess tax benefits from stock-based compensation	-
Inventories	-3583000
Accounts receivable, net & other current assets	-4786000
Accounts payable	7175000
Accrued expenses & other liabilities	283000
Additions to unearned revenue	738000
Amortization of previously unearned revenue	-
Net cash flows from operating activities	18434000
Purchases of property & equipment, including internal-use software & website development	-11955000
Proceeds from property & equipment incentives	1897000
Acquisitions, net of cash acquired, & other investing activities	-13972000
Sales & maturities of marketable securities	9988000
Sales & maturities of marketable securities & other investments	-
Purchases of marketable securities	-13777000
Purchases of marketable securities & other investments	-
Net cash flows from investing activities	-27819000
Excess tax benefits from stock-based compensation	-
Proceeds from long-term debt & other financing activities	16231000
Repayment of long-term debt	-
Repayments of long-term debt & other financing activities	-1372000
Principal repayments of capital lease obligations	-4799000
Principal repayments of finance lease obligations	-200000
Net cash flows from financing activities	9860000
Foreign-currency effect on cash & cash equivs	713000
Net increase (decrease) in cash & cash equivalents	1188000
Cash & cash equivalents, end of year	20522000
Cash paid for interest	-
Cash paid for interest on long-term debt	328000
Cash paid for interest on capital & finance lease obligations	319000
Cash paid for income taxes	957000

2017
Ratio Calculations				Equations
Current ratio	/	=	#DIV/0!	current assets / current liabilities
Debt/equity ratio	/	=	#DIV/0!	total liabilities / total equity
Free cash flow	-	=	$ -	total operating cash flow - capital expenditures
Earnings per share	/	=	#DIV/0!	net income / common shares outstanding
Price/earnings ratio	/	=	#DIV/0!	stock price / earnings per share
Return on equity	/	=	#DIV/0!	net income / total equity
Net profit margin	/	=	#DIV/0!	net income / total revenue