Utilize the 2017 financial statements, annual reports, horizontal and vertical analysis for Amazon to calculate the following ratio.

Calculate the profit margin for Amazon.

Amazon Horizontal/Vertical Analysis Information Amazon 12/31/2018 Xchange 12/31/2017 change 12/31/2016 31,750,000 55 20,522,000 6 19,314,000 -9 57 41 42 9,500,000 16,677,000 17,174,000 75, 101,000 440,000 10,464,000 11,835,000 16,047.000 60,197,000 441,000 40 6,647,000 8,339,000 11,461,000 45,781,000 223,000 25 31 0 26 48,866,000 68 61,797,000 14,548,000 4,110,000 11,202,000 162,648,000 9 22 13,350,000 3,371,000 5,085,000 131,310,000 120 29,114,000 3,784,000 854,000 3,646,000 83,402,000 253 295 39 57 24 All numbers in thousands Period Ending Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Tot Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Other Assets Total Assets Current abilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Total abilities Stockholders' Equity Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity 10 34,616,000 37 38, 192,000 1,371,000 1,271 25,309,000 100,000 -91 1,056,000 6,536,000 -24 8,565,000 19 7,168,000 18 57,883,000 32 68,391,000 23,495,000 27,213,000 119,099,000 -5 249 15 24,743,000 7,792,000 108,601,000 222 53 62 43,816,000 7,694,000 5,088,000 64,117,000 O 5,000 19,625,000 -2,872,000 26,791,000 -1,035,000 43,549,000 127 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 12/01/2018 12/31/2017 12/31/2016 Qurrent Assets Cash And Cash 31,750,000 20 Equivalents 20,522,000 16 19,334,000 Short Term 9,500,000 6 Investments 10.464.000 8 6,647,000 Net Receivables 16,677,000 10 11,835,000 9 8,339,000 Inventory 17.174,000 11 16,047,000 12 11,461.000 Other Current 418.000 Assets 1.329,000 1 Total Current Assets 75, 101,000 46 60,197,000 46 45,711,000 Long Term Investments 440,000 0 441,000 0 223,000 Property Plant and Equipment 61,797.000 48,166,000 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 3,646,000 Total Assets 162,648,000 100 131,319,000 100 $3,400,000 Current Liabilities Accounts Payable 38, 192,000 34,616,000 26 25.300.000 Short/Current Long 1,371,000 1 100,000 0 1,056,000 Term Debt Other Current 6,536,000 4 Liabilities 8.565,000 7 7,168,000 Total Current 68,391,000 Liabilities 57,883,000 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 6 5,088,000 Total liabilities 119,099,000 73 103,601,000 79 64,117,000 23 Amazon (in thousands) 12/31/2018 Xchange 12/31/2017 change 232,887,000 30.93 177,866,000 30.80 139,156,000 24.32 111,934,000 26.82 93,731,000 42.16 65,932,000 38.16 12/31/2016 135,987,000 88,265,000 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 16,085,000 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 39.06% 33. 34% 30 39% Net sales 100.00% 100.00% 100.00% Cost of sales -59.75% -62.93% -84.91% Gross profit 40.25% 37.07% 35.09% Fulfillment -14.61% -14 20% - 12 96% Marketing -5.93% -5.66% -5.32% Technology and content -12 3896 -12.72% - 11.83% General and administrative -1.86% -2.07% -1.7996 Other operating expense, net -0.13% -0.12% -0.12% Operating income 5.33% 2.31% 3.08% Interest income 0.19% 0.11% 0.07% Interest expense -0.61% -0.48% -0.36% 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 0.00% 0.00% -0.07% Net income (loss) 4.33% 1.71% 1.74%