Question
What are the growth rates for Amazon.com Inc (and how do I calculate them)? This is how far I've gotten: ROE= net income/total equity ROE=
What are the growth rates for Amazon.com Inc (and how do I calculate them)?
This is how far I've gotten:
ROE= net income/total equity
ROE= -$39,000,000/$8,192,000,000
ROE= -0.48%
ROA= net income/total assets
ROA= -$39,000,000/$32,555,000,000
ROA= -1.2%
Plowback Ratio= Addition to Retained Earnings/Net Income
Plowback Ratio= 0/-39,000
Internal Growth Rate= [ROA x (plowback ratio)]/[1-ROA x (1- plowback ratio)]
Amazon paid out no dividend in 2012, and have a net loss of $39,000, so there was no addition to retained earnings.
The full financial info that I am using comes from Yahoo Finance.
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