Question
Explicate This: Deciphering financial reporting Reconfigure the financial information in this text so that it is easier to understand by putting it into a chart
Explicate This:
Deciphering financial reporting
Reconfigure the financial information in this text so that it is easier to understand by putting it into a chart format. You will have to calculate some of the figures implied but not stated in this text in order to make the chart complete.
"Amazon's Revenues: How Does Amazon Make Money?"This information was reported by Forbes (Trefis Team Contributor) Jan 28, 2020
Section for charts A & B -use the financials stated in this section to fill in charts A & B, calculate all missing information
Amazon(NASDAQ: AMZN)is slated to release its Q4 and full-year 2019 results on January 30, 2020.
We believe thatAmazon's Revenues and earnings will beat consensus. We expect Amazon to report annual revenuesof $279.3 billion which would be19.9% higher than the previous year.
Earnings are likely to be around $22.67 billion for 2019 higher than $20.15 reported in 2018.
The fourth quarter earningswill be $3.27 billion compared to $3.03 for the same period last year, and revenue will be a 20.9% increase over the same period's last year sales of $72.3 billion.
Due to a better Total Revenue offset by a lower net income margin. We believe that stronger-than-expected earnings and revenues for FY 2019 will likely result in a positive movement in Amazon's stock price once earnings are announced
Section for chart C -use the financials stated in this section to fill in chart C, calculate all missing information
Amazon's 3 divisions are expected to make $279.3 billion for full-year 2019
- Amazon's North America business will contribute $168.2 billion to Amazon's 2019 revenues of Amazon's $279.3 billion in total revenues for 2019.The North America segment primarily consists of amounts earned from retail sales of consumer products and subscriptions through North America-focused online and physical stores. The North America segment contribution is more than twice any other segment.
- Amazon International business will contribute $77.7 billion in revenue to total revenue. The International segment primarily consists of amounts earned from retail sales of consumer products and subscriptions through internationally focused online stores.
- Amazon Web Services will contribute $ 33.4 billion. The AWS segment consists of amounts earned from global sales of computing, storage, database, and other service offerings for start-ups, enterprises, government agencies, and academic institutions
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Explicate This:
Deciphering financial reporting
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Use the following charts to type in the financial details for Amazons total annual and 4th quarter Results. (Please review "best practices" in the assignment review slide)
A- Total Annual Results 2019 (40 points)
2019 | 2018 | % change | |
Sales | |||
Profits |
B- 4th QuarterResults 2019 (40 points)
2019 | 2018 | % change | |
Sales | |||
Profits |
C- How Does Amazon Make Money? - Fill in the following chart showing the penetration percent by division. (20 points)
Division | Sales | Penetration % to total |
Total | 100% | |
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