Amazon.com Financial Analysis and Financial Ratios
Quality Business Consultant's financial analysis expert, Paul Borosky, MBA., doctoral candidate, and published author, has created proprietary financial models to help analyze Amazon.com's financial performance using Amazon's summarized income statements and balance sheets for the last five years, found in their Annual Reports and Amazon's 10ks.
Further, our financial model also calculates over 20 popular financial ratios, such as Amazon.com's current ratio, return on equity, and debt ratio. This information is the basis of our financial report, "Amazon.com Financial Report," where we offer insights into understanding their financial standing through insightful financial analysis.
A Beginner's Guide to Amazon.com Financial Analysis - 2021
- Included Easy to download PDF File.
- Included Easy to use format.
- Included Summarized Income Statements and Balance Sheets
- Included Popular financial ratios included... With calculations and formulas!
- Included Expert tips to help with financial statements analysis.
- Included Expert tips to help with financial ratios analysis.
- NOT Included-Identify and discuss financial trends.
- NOT Included-Expert financial analysis done by Paul Borosky, MBA.
- NOT Included- Analyst "Letter Grades" for Amazon's ratios.
Amazon.com Financial Report by Paul Borosky, MBA. - 2021
- Included Easy to download PDF File.
- Included Easy to use format.
- Included Summarized Income Statement and Balance Sheet
- Included Popular financial ratios for included... With calculations and formulas!
- Included Expert tips to help with financial statements analysis.
- Included Expert tips to help with financial ratios analysis.
- Included Identify and discuss financial trends.
- Included Expert financial analysis done by Paul Borosky MBA.
- Included Analyst "Letter Grades" for financial ratios.
Amazon's Financial Report and Financial Analysis
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Amazon.com Beginner's Guide 2021
Table of Contents
- Disclaimer 3
- Forward 4
- Income Statement 6
- com’s Summarized Income Statements 6
- Revenues 7
- Cost of Goods Sold (COGS) 8
- Selling, General, and Administrative Expenses (SG&A 8
- Research and Development (R&D) 9
- Operating Expenses 10
- Earnings Before Interest and Taxes (EBIT 10
- Interest Expense 11
- Earnings Before Taxes (EBT) 12
- Taxes 12
- Net income 12
- Tax Rate 13
- Balance Sheet 15
- com’s Summarized Balance Sheets 15
- Cash 16
- Short-Term Investments 17
- Accounts Receivables 17
- Inventory 18
- Current Assets 19
- Property, Plant, and Equipment (PP&E) 20
- Total Assets 20
- Accounts Payable 21
- Accrued Expenses 22
- Short-Term Debt 23
- Total Current Liabilities 24
- Long Term Debt (LT Debt) 25
- Total Liabilities 26
- Common Stock and Additional Paid-in Capital 27
- Treasury 27
- Retained Earnings 28
- Total Equity 29
- Financial Ratios 30
- com Liquidity Ratios 31
- Current Ratio 31
- Quick Ratio 32
- Cash Ratio 33
- com Asset Ratios 35
- Total Asset Turnover 36
- Fixed Asset Turnover 37
- Days Sales Outstanding 37
- Inventory Turnover 38
- Accounts Receivable Turnover 39
- Accounts Payable Turnover 40
- Other Asset Ratio Calculations 41
- Working Capital Turnover 41
- Average Days in Inventory 41
- Average Days Payable 41
- com Profitability Ratios 43
- Return on Assets (ROA) 43
- Return on Equity (ROE) 44
- Net Profit Margin 45
- Gross Profit Margin 46
- Operating Profit Margin 46
- com Debt Ratios 48
- Debt Ratio 48
- Debt to Equity Ratio 49
- Times Interest Earned 50
Click Below for the CURRENT
Downloadable PDF Price!!
Amazon.com Financial Report 2021
Table of Contents
- Disclaimer 3
- Forward 4
- Income Statement 6
- com’s Summarized Income Statements 6
- Revenues 7
- Cost of Goods Sold (COGS) 8
- Selling, General, and Administrative Expenses (SG&A 9
- Research and Development (R&D) 10
- Operating Expenses 11
- Earnings Before Interest and Taxes (EBIT 11
- Interest Expense 12
- Earnings Before Taxes (EBT) 13
- Taxes 13
- Net income 14
- Tax Rate 15
- Balance Sheet 16
- com’s Summarized Balance Sheets 16
- Cash 17
- Short-Term Investments 18
- Accounts Receivables 19
- Inventory 20
- Current Assets 21
- Property, Plant, and Equipment (PP&E) 22
- Total Assets 23
- Accounts Payable 24
- Accrued Expenses 25
- Short-Term Debt 25
- Total Current Liabilities 26
- Long Term Debt (LT Debt) 27
- Total Liabilities 29
- Common Stock and Additional Paid-in Capital 29
- Treasury 30
- Retained Earnings 31
- Total Equity 32
- Financial Ratios 33
- com’s Liquidity Ratios 34
- Current Ratio 34
- Cash Ratio 35
- Quick Ratio 36
- com’s Asset Ratios 38
- Total Asset Turnover 39
- Fixed Asset Turnover 40
- Days Sales Outstanding 41
- Inventory Turnover 42
- Accounts Receivable Turnover 43
- Accounts Payable Turnover 44
- Other Asset Ratio Calculations 45
- Working Capital Turnover 45
- Average Days in Inventory 45
- Average Days Payable 46
- com’s Profitability Ratios 47
- Return on Assets (ROA) 47
- Return on Equity (ROE) 48
- Net Profit Margin 49
- Gross Profit Margin 50
- Operating Profit Margin 51
- com’s Debt Ratios 53
- Debt Ratio 53
- Debt to Equity Ratio 54
- Times Interest Earned 55
- Summary 57
- Amazon.com’s Strengths 57
- Amazon.com’s Weaknesses 57
- Amazon.com’s Final Grade 57
Amazon's Financial Report by Paul Borosky, MBA.
Hey All,
Thanks for considering my Amazon.com Financial Report. In this report, you will be able to find preliminary information about Amazon's current financial performance as well as some historical track records and trends. Also, in this report, written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, you will find:
- Summarized income statement for the last 5 years.
- Summarized balance sheet for the last 5 years.
- Summary analysis by myself of the important income statement, balance sheet, and financial ratio trends and other happenings.
- Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
Sincerely,
Paul, MBA.
Sample Report
Amazon.com Income Statement Analysis Sample
In this section of the financial report, I walk you through a broad definition of what an income statement is and why it is essential. From this, I then discuss and define important income statement line items, such as revenues, gross profits, etc., in detail. Finally, I offer a summary analysis of the company's important income statement line item trends. For example,...
Amazon's Cost of Goods Sold.
Amazon's cost of goods sold for 2016 was approximately $88.2 billion. As compared to revenues, the percentage was 64.9%. In the next four years, the organization's cost of goods sold would increase to $233 billion. As compared to revenues, this would be 60.4%. A decline in COGS may mean that the organization is able to increase their prices at a faster pace as compared to their cost of goods sold growth. The ability to increase gross profit margins like this, especially in the technology industry, is an exceptional feat.
Amazon.com Summary Income Statement 2021 |
|||||
Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
Revenues |
469,822 |
386,064 | 280,522 | 232,887 |
177,866 |
COGS |
272,344 |
233,307 | 165,536 | 139,156 |
111,934 |
Gross Profit |
197,478 |
152,757 | 114,986 | 93,731 |
65,932 |
SG&A |
8,823 |
6,668 | 5,203 | 4,336 |
3,674 |
Depreciation |
34,296 |
25,251 | 21,789 | 15,341 |
11,478 |
R & D |
56,052 |
42,740 | 35,931 | 28,837 |
22,620 |
Other | - | - | - | - | - |
Total Operating Expenses |
444,943 |
363,165 | 265,981 | 220,466 |
173,760 |
EBIT |
24,879 |
22,899 | 14,541 | 12,421 |
4,106 |
Other Income | - | - | - | - | - |
Interest Expense |
1,809 |
1,647 | 1,600 | 1,417 |
848 |
EBT |
38,151 |
24,178 | 13,976 | 11,261 |
3,806 |
Taxes |
4,791 |
2,863 | 2,374 | 1,197 |
769 |
Net Income |
33,364 |
21,331 | 11,588 | 10,073 |
3,033 |
Amazon.com Balance Sheet Analysis Sample
In this section of the financial report, I walk you through a broad definition of what a balance sheet is and why it is important. From this, I then discuss and define important balance sheet line items, such as cash, inventory, etc., in detail. Finally, I offer a summary analysis of the company's important balance sheet line item trends. For example,...
Amazon.com Property, Plant, and Equipment
Amazon's property, plant, and equipment ended 2016 at $29.1 billion. In the next several years, the organization's property, plant, and equipment would grow substantially, ending 2020 at $113.1 billion. As compared to sales, in 2016, the organization's property, plant, and equipment was 22.1%. The property, plant, and equipment would grow substantially as compared to sales over the next four years ending 2020 at 31.1%. This indicates that the organization is increasing its fixed assets at a faster pace as compared to sales. This often means that the firm is expecting substantial long-term growth and is preparing now to support it.
Amazon.com Summary Balance Sheet 2021 |
|||||
Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
Cash |
36,220 |
42,122 | 36,092 | 31,750 |
20,522 |
Short Term Investment |
59,829 |
42,274 | 18,929 | 9,500 |
10,464 |
Account Receivable |
32,891 |
24,542 | 20,816 | 16,677 |
13,164 |
Inventory |
32,640 |
23,795 | 20,497 | 17,174 |
16,047 |
Other | - | - | - | - | - |
Current Assets |
161,580 |
132,733 | 96,334 | 75,101 |
60,197 |
Net PPE |
160,281 |
113,114 | 72,705 | 61,797 |
48,866 |
Goodwill |
15,371 |
15,017 | 14,754 | 14,548 |
13,350 |
Other | - | - | - | - | - |
Total Assets |
420,549 |
321,195 | 225,248 | 162,648 |
131,310 |
Accounts Payable |
78,664 |
72,539 | 47,183 | 38,192 |
34,616 |
Accrued Expense |
51,775 |
44,138 | 32,439 | 23,663 |
18,170 |
Accrued Taxes | - | - | - | - | - |
Notes Payable | - | - | - | - | - |
LT Debt - Current | - | - | - | - | - |
Other | - | - | - | - | |
Total Current Liabilities |
142,266 |
126,385 | 87,812 | 68,391 |
57,883 |
LT Debt |
48,744 |
31,816 | 23,414 | 23,495 |
27,743 |
Other | - | - | - | - | - |
Total Liabilities |
282,304 |
227,791 | 163,188 | 119,099 |
103,601 |
Common Stock |
55,543 |
42,870 | 33,663 | 26,796 |
21,394 |
Treasury |
1,837 |
1,837 | 1,837 | 1,837 |
1,837 |
Retained Earnings |
85,915 |
52,551 | 31,220 | 19,625 |
8,636 |
Other | - | - | - | - | - |
Total Equity |
138,245 |
93,404 | 62,060 | 43,549 |
27,709 |
Total Equity & Liability |
420,549 |
321,195 | 225,248 | 162,648 |
131,310 |
Amazon.com Financial Ratios Sample
In this section of the financial report, I walk you through definitions of various popular financial ratios, how to calculate the ratios, formulas used, etc. Also, for some popular financial ratios, I provide brief explanations of what the ratios mean as it is related to the company.
https://youtu.be/ZYMxONrHuNI
Amazon Quick Ratio
Amazon's quick ratio ended 2016 at .78. In the next two years, the organization's quick ratio would increase slightly, ending 2018 at .85. From this point, Amazon would maintain a quick ratio close to .86. Overall, having a quick ratio close to one shows significant liquidity for the organization. If there's any optimization to make, it would be for the company to slightly reduce their quick ratio back towards a .76 range. The firm does generate cash on a daily basis. Because of this, their liquidity needs are probably quite low due to the continued cash flow.
Amazon.com Fixed Asset Turnover Ratio
Amazon ended 2016 with a fixed asset turnover of 4.6. In the next two years, the organization's fixed asset turnover would fall to 3.7. Fortunately, in 2019, the organization would rebound its fixed asset turnover ending the year at 3.8. However, the company would again fall with its fixed asset turnover ending 2020 at 3.4. This indicates that the organization is not fully utilizing its fixed assets. Heck, the organization is actually continually underutilizing its assets more and more, year over year. To improve the strategy, the organization either needs to increase revenues, which would justify having the currently underused fixed assets, or divest the fixed assets and use the cash obtained for other revenue-generating purposes.
Amazon.com Return on Equity
Amazon's return on equity ended 2016 at 12.2%. In the next year, the organization's return on equity would fall slightly to 10.9%. Fortunately, in the next year, through 2020, the organization would achieve a substantial return on equity achievements ranging from 18.6% to 23%. An excellent way to further improve the organization's return on equity would be to take on additional debt. As an organization takes on debt, its reliance on equity falls. This inevitably leads to a higher return on equity for shareholders.
Amazon.com 2021 Liquidity Ratios |
|||||
Ratios |
2021 |
2020 | 2019 | 2018 |
2017 |
Current Ratio | 1.14 | 1.05 | |||
Cash Ratio | 0.68 | 0.67 | |||
Quick Ratio | 0.91 | 0.86 | |||
Net Working Capital | 19,314 | 6,348 | |||
Amazon.com 2021 Asset Utilization |
|||||
Ratios |
2021 |
2020 | 2019 | 2018 |
2017 |
Total Asset Turnover | 1.12 | 1.20 | |||
Fixed Asset Turnover | 2.93 | 3.41 | |||
Days Sales Outstanding | 22.31 | 21.44 | |||
Inventory Turnover (Using Sales) | 16.65 | 17.43 | |||
Inventory Turnover (Using COGS) | 9.65 | 10.53 | |||
Accounts Receivable Turnover | 16.36 | 17.02 | |||
Working Capital Turnover | 24.33 | 60.82 | |||
AP Turnover | 3.72 | 3.95 | |||
Average Days Inventory | 37.82 | 34.65 | |||
Average Days Payable | 98.14 | 92.34 | |||
Amazon.com 2021 Profitability Ratios | |||||
Ratios |
2021 |
2020 | 2019 | 2018 |
2017 |
Return on Assets |
7.93% |
6.64% |
|||
Return on Equity |
24.13% |
22.84% |
|||
Net Profit Margin |
7.10% |
5.53% |
|||
Gross Profit Margin |
42.03% |
39.57% |
|||
Operating Profit Margin |
5.30% |
5.93% |
|||
Basic Earning Power |
5.92% |
7.13% |
|||
ROCE |
8.94% |
11.75% |
|||
Capital Employed | 278,283 | 194,810 | |||
ROIC |
11.63% |
16.12% |
|||
Amazon.com 2021 Debt Ratios |
|||||
Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
Debt Ratio |
11.59% |
9.91% |
|||
Debt/Equity |
35.26% |
34.06% |
|||
Times Interest Earned | 13.75 | 13.90 |