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, 2016 to 2020, 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

$9.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Amazon's Summarized Income Statement and Balance Sheet for 2016-2020
  • Included Popular financial ratios for Amazon.com (2016-2020) included... With calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with Amazon's financial ratios analysis.
  • NOT Included-Identify and discuss Amazon's financial trends.
  • NOT Included-Expert financial analysis done by Paul Borosky, MBA.
  • NOT Included- Analyst "Letter Grades" for Amazon's ratios.
  • NOT Included-Free Annual Reports Download for Amazon (5 Years)

Amazon.com Financial Report by Paul Borosky, MBA. - 2021

$14.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Amazon's Summarized Income Statement and Balance Sheet for 2016-20210
  • Included Popular financial ratios for Amazon.com (2016-2020) included... With calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with Amazon.com financial ratios analysis.
  • Included Identify and discuss Amazon's financial trends.
  • Included Expert financial analysis done by Paul Borosky MBA.
  • Included Analyst "Letter Grades" for Amazon's ratios.
  • Included Free Annual Reports Download for Amazon(5 years).

Amazon's Financial Report and Financial Analysis

Amazon 2021 Beginner's Guide to Financial Analysis

Price: $9.99

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
Amazon.com Financial Report 2021 by Paul Borosky, MBA.

Price: $14.99

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

Sample report 2
Financial Report Sample 1

Amazon.com Income Statement Analysis Sample

In this section of the financial report, I walk you through a broad definition as to what an income statement is and why it is important.  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 as to 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.

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 their 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 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