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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

  1. 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.
  2. 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.
  3. 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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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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