Accessed June 22, 2020. Inc.’s profitability ratio calculated as net income divided by shareholders’ equity. Balance Sheet: Liabilities and Stockholders’ Equity, Common-Size Balance Sheet: Liabilities and Stockholders’ Equity, Analysis of Components of Financial Statements, Analysis of Short-term (Operating) Activity Ratios, Analysis of Long-term (Investment) Activity Ratios, Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Debt to Equity (including Operating Lease Liability), Debt to Capital (including Operating Lease Liability), Debt to Assets (including Operating Lease Liability), DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin, Earnings before Interest, Tax, Depreciation and Amortization (EBITDA), Intrinsic Stock Value (Valuation Summary), Present Value of Free Cash Flow to the Firm (FCFF), Present Value of Free Cash Flow to Equity (FCFE), Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities, Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary), Analysis of Property, Plant and Equipment, Estimated Age, Time Elapsed Since Purchase, Analysis of Goodwill and Intangible Assets, Adjustments to Financial Statements: Removal of Goodwill, Adjusted Financial Ratios: Removal of Goodwill (Summary), Components of Deferred Tax Assets and Liabilities, Adjustments to Financial Statements: Removal of Deferred Taxes, Adjusted Financial Ratios: Removal of Deferred Taxes (Summary), Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842), Adjustments to Financial Statements for Operating Leases, Adjusted Financial Ratios for Operating Leases (Summary), Allowance for Doubtful Accounts Receivable. Return on capital (ROC) is after tax rate of return on net business assets. Amazon may not be able to sustain its sales exuberance forever. The year prior it was 33%. The company continues to make many capital investments each year, mostly using cash flow from operations. The cash flow statement provides information about Inc.’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Inc.’s balance sheet. Amazon pursued a strategy of reinvesting most of its profits into the business. This strategy allowed the company to expand faster, and it also minimized taxes. Developers and enterprises can run their online operations on Amazon Web Services for a monthly fee. The other explanation is that Amazon is running out of areas to reinvest profits. Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news. We expect our cost of shipping to continue to increase to the extent our customers accept and use our shipping offers at an increasing rate, we reduce shipping rates, we use more expensive shipping methods, including faster delivery, and we offer additional services. A growth stock is a publicly-traded share in a company expected to grow at a rate higher than the market average. What the Price-To-Book Ratio (P/B Ratio) Tells You? Closing Bell . The accounts receivable that are estimated to be uncollectible are called bad debts or doubtful accounts receivable. Financial statement analysis is the process of analyzing a company's financial statements for decision-making purposes. Financial reporting quality relates to the accuracy with which Inc.’s reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows. Nasdaq. › Financial Statements Examples – Amazon Case Study. "AMZN Price/Earnings & PEG Ratios." Ten years of annual and quarterly financial ratios and margins for analysis of Amazon (AMZN). Accessed June 22, 2020. Operating performance ratios describe the relationship between the Inc.’s level of operations and the assets needed to sustain operating activities. Cookies help us deliver our services. Inc. annual income statement. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Traditional measurements of value often fail when applied to Amazon. Amazon's high price-to-earnings ratio does not mean the stock is going to crash, but it does make shares more volatile. The assets reports major classes and amounts of resources owned or controlled by Inc.. Inc.’s liquidity ratio calculated as current assets divided by current liabilities. Accessed June 22, 2020. Copyright © 2020 Stock Analysis on Net ( You can learn more about the standards we follow in producing accurate, unbiased content in our. While costs associated with Amazon...Read more, Increased unit sales were driven...Read more, The increase in AWS operating...Read more, To increase sales of products...Read more, Technology and Content Technology and...Read more, Other Operating Expense (Income), Net...Read more, Cash capital expenditures were $11.3...Read more, The increase in fulfillment costs...Read more, General and Administrative The increase...Read more, Increases in operating income primarily...Read more, Income Taxes Our effective tax...Read more, Additionally, because payment processing costs...Read more, We seek to invest efficiently...Read more, The sales growth primarily reflects...Read more, Operating Expenses Information about operating...Read more, Our results are inherently unpredictable...Read more, Finally, foreign governments may enact...Read more, Developments in an audit, investigation,...Read more, _______________________ (1) See "Results of...Read more, Our interest income corresponds with...Read more, Variable costs generally change directly...Read more, Infrastructure costs include servers, networking...Read more, Our operating cash flows result...Read more, North America sales increased 21%...Read more, International sales increased 13% in...Read more, This guidance anticipates a favorable...Read more, In connection with the European...Read more, Shipping costs to receive products...Read more, We provide multiple measures of...Read more, This guidance includes approximately $800...Read more, The increase in technology and...Read more, On average, our high inventory...Read more, First Quarter 2020 Guidance Net...Read more, The following is a reconciliation...Read more, We believe that our increasing...Read more, Amazon Com Inc provided additional information to their SEC Filing as exhibits, © 2012 – 2020 All Rights Reserved. Indicates how profitable Inc. projects are as a sign of management performance. Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q. That leaves little cash for anything else, and all eyes are on growth. Inc.’s indicator of profitability, calculated as net income divided by revenue. The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital., Inc. (AMZN) is one of the most valuable megacap companies on the Nasdaq exchange. Comprehensive income is the change in equity (net assets) of Inc. during a period from transactions and other events and circumstances from non-owners sources. Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Amazon Com Inc. As a result, traditional measurements of value often fail when applied to Amazon. Accessed June 22, 2020. The FCFF valuation approach estimates the value of the firm as the present value of future FCFF discounted at the weighted average cost of capital (WACC). Get insights into the important financial ratios behind the Amazon growth story, and understand the implications as the ratios move one direction or the other. Free cash flow to the firm is the cash flow available to the Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. The sales growth rate is a better guide to Amazon's corporate health, with 30% per year being typical. These include white papers, government data, original reporting, and interviews with industry experts. Measures how efficiently Inc. generates revenues from its investments in fixed or total assets. Remove data columns and navigations in order to see much more filing content and tables in one view, Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q, Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis, Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports, Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not, Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity, See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years, or     View AMZN financial statements in full, including balance sheets and ratios. Forward earnings are an estimate of a company's next period's earnings, usually to the end of the current fiscal year, sometimes to the following year. Inc.’s profitability ratio calculated as net income divided by total assets. Financial statements are the records of a company’s financial condition and activities during a period of time. Understanding the Sustainable Growth Rate (SGR). Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. Internal management performance measure that compares net operating profit after taxes to total cost of capital. By using our services, you agree to our use of cookies. The sustainable growth rate (SGR) is the maximum rate of growth that a company can sustain without raising additional equity or taking on new debt. Besides being at the forefront of ecommerce retailing, Amazon also runs a publishing platform for authors and publishers. Income statement components (revenues and expenses) shown as percentage of total sales. The dividend discount model (DDM) is a technique for estimating the value of a share of Inc.’s common stock issue as the present value of all future dividends. EBITDA as a pre-interest number is a flow to all providers of capital. Examines Inc.’s capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations. Amazon. Amazon's experience running one of the top sites on the Internet allowed it to start AWS long before most competitors arrived. Assets components shown as percentage of total assets. Inc.’s activity ratio calculated as total revenue divided by total assets. Web services are generally a much higher margin business than retail, so we might expect higher profit margins going forward. Aggregate accruals deriving measures of the accrual component of Inc.’s earnings. Financial reporting quality relates to the accuracy with which Inc.’s reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.Aggregate accruals deriving measures of the accrual component of Inc.’s earnings. An approach to decomposing Inc.’s return on equity, return on assets, and net profit margin ratio as the product of other financial ratios. It cannot be eliminated by diversification. The income statement (statement of earnings) reports on the performance of Inc., the result of its operating activities. Amazon. AWS is actually the fastest-growing source of revenue for Amazon, and sales grew 37% in 2019. Given the continued transition to cloud computing, AWS appears to have strong growth prospects for the foreseeable future.

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