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In this context, how is each companys financial health? How do these two companies compare to one another? Please be as detailed as possible, thank
In this context, how is each companys financial health? How do these two companies compare to one another? Please be as detailed as possible, thank you so much!
Amazon 3 year ratio calculations:
| 2017 | ||||||
| Ratio Calculations | Equations | |||||
| Current ratio | 60,197,000 | / | 57,883,000 | = | 1.04 | current assets / current liabilities |
| Debt/equity ratio | 103,601,000 | / | 27,709,000 | = | 373.9% | total liabilities / total equity |
| Free cash flow | 18,434,000 | - | 27,819,000 | = | $ (9,385,000) | total operating cash flow - capital expenditures |
| Earnings per share | 3,033,000 | / | 480,000 | = | $ 6.32 | net income / common shares outstanding |
| Price/earnings ratio | 1169.47 | / | 6.32 | = | 185.04 | stock price / earnings per share |
| Return on equity | 3,033,000 | / | 27,709,000 | = | 10.9% | net income / total equity |
| Net profit margin | 3,030,000 | / | 177,866,000 | = | 1.7% | net income / total revenue |
| 2016 | ||||||
| Ratio Calculations | Equations | |||||
| Current ratio | 45,781,000 | / | 43,816,000 | = | 1.04 | current assets / current liabilities |
| Debt/equity ratio | 64,117,000 | / | 19,285,000 | = | 332.5% | total liabilities / total equity |
| Free cash flow | 16,443,000 | - | 6,737,000 | = | $ 9,706,000 | total operating cash flow - capital expenditures |
| Earnings per share | 2,371,000 | / | 474,000 | = | $ 5.00 | net income / common shares outstanding |
| Price/earnings ratio | 749.87 | / | 5.00 | = | 149.97 | stock price / earnings per share |
| Return on equity | 2,371,000 | / | 19,285,000 | = | 12.3% | net income / total equity |
| Net profit margin | 2,371,000 | / | 135,987,000 | = | 1.7% | net income / total revenue |
| 2015 | ||||||
| Ratio Calculations | Equations | |||||
| Current ratio | 36,474,000 | / | 33,899,000 | = | 1.08 | current assets / current liabilities |
| Debt/equity ratio | 52,060,000 | / | 13,384,000 | = | 389.0% | total liabilities / total equity |
| Free cash flow | 11,920,000 | - | 4,589,000 | = | $ 7,331,000 | total operating cash flow - capital expenditures |
| Earnings per share | 596,000 | / | 467,000 | = | $ 1.28 | net income / common shares outstanding |
| Price/earnings ratio | 675.89 | / | 1.28 | = | 528.04 | stock price / earnings per share |
| Return on equity | 596,000 | / | 13,384,000 | = | 4.5% | net income / total equity |
| Net profit margin | 596,000 | / | 107,006,000 | = | 0.6% | net income / total revenue |
3 year Industry Averages for Amazon: Current ratio, Return on equity, net progit margin
| Current Ratio - 2017 | Current Ratio - 2016 | Current Ratio - 2015 | ROE % (Net) - 2017 | ROE % (Net) - 2016 | ROE % (Net) - 2015 | Net Profit Margin % - 2017 | Net Profit Margin % - 2016 | Net Profit Margin % - 2015 |
| Peer Avr: 2.04 | Peer Avr: 2.2 | Peer Avr: 2.3 | Peer Avr: -101.71 | Peer Avr: -5.43 | Peer Avr: -21.64 | Peer Avr: 0.85 | Peer Avr: -2.41 | Peer Avr: -7.83 |
J.C. Penny 3 year ratio calculations:
| 2017 | ||||||
| Ratio Calculations | Equations | |||||
| Current ratio | 3,410,000 | / | 2,332,000 | = | 1.46 | current assets / current liabilities |
| Debt/equity ratio | 7,034,000 | / | 1,379,000 | = | 510.1% | total liabilities / total equity |
| Free cash flow | 454,000 | - | 395,000 | = | $ 59,000 | total operating cash flow - capital expenditures |
| Earnings per share | -1,160,000 | / | 312,000 | = | $ (3.72) | net income / common shares outstanding |
| Price/earnings ratio | 3.16 | / | 3.72 | = | 0.85 | stock price / earnings per share |
| Return on equity | -1,160,000 | / | 1,379,000 | = | -84.1% | net income / total equity |
| Net profit margin | -1,160,000 | / | 12,506,000 | = | -9.3% | net income / total revenue |
| 2016 | ||||||
| Ratio Calculations | Equations | |||||
| Current ratio | 4,097,000 | / | 2,419,000 | = | 1.69 | current assets / current liabilities |
| Debt/equity ratio | 7,960,000 | / | 1,354,000 | = | 587.9% | total liabilities / total equity |
| Free cash flow | 334,000 | - | 427,000 | = | $ (93,000) | total operating cash flow - capital expenditures |
| Earnings per share | 1,000 | / | 308,300 | = | $ 0.00 | net income / common shares outstanding |
| Price/earnings ratio | 8.31 | / | 0.00 | = | 2,561.97 | stock price / earnings per share |
| Return on equity | 1,000 | / | 1,354,000 | = | 0.1% | net income / total equity |
| Net profit margin | 1,000 | / | 12,547,000 | = | 0.0% | net income / total revenue |
| 2015 | ||||||
| Ratio Calculations | Equations | |||||
| Current ratio | 4,018,000 | / | 2,412,000 | = | 1.67 | current assets / current liabilities |
| Debt/equity ratio | 8,133,000 | / | 1,309,000 | = | 621.3% | total liabilities / total equity |
| Free cash flow | 440,000 | - | 320,000 | = | $ 120,000 | total operating cash flow - capital expenditures |
| Earnings per share | -513,000 | / | 306,100 | = | $ (1.68) | net income / common shares outstanding |
| Price/earnings ratio | 6.66 | / | 1.68 | = | 3.96 | stock price / earnings per share |
| Return on equity | -513,000 | / | 2,412,000 | = | -21.3% | net income / total equity |
| Net profit margin | -513,000 | / | 12,625,000 | = | -4.1% | net income / total revenue |
3 year Industry Averages for J.C. Penny: Current ratio, Return on equity, net progit margin
| Current Ratio - 2017 | Current Ratio - 2016 | Current Ratio - 2015 | ROE % (Net) - 2017 | ROE % (Net) - 2016 | ROE % (Net) - 2015 | Net Profit Margin % - 2017 | Net Profit Margin % - 2016 | Net Profit Margin % - 2015 |
| Peer Avr: 1.84 | Peer Avr: 1.99 | Peer Avr: 2.01 | Peer Avr: -101.17 | Peer Avr: -4.25 | Peer Avr: -39.81 | Peer Avr: 0.68 | Peer Avr: -0.96 | Peer Avr: -5.12 |
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
