Amazon.com Inc. Financial Statements and Financial Ratios Analyzed from 2014 to 2018

Amazon.com 2018 Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA. and owner of Quality Business Plan.  In this summarized book, the author researched Amazon.com 10k, Amazon.com 2017 10k annual report, Amazon's 2016 10k annual report, Amazon's 2015 10k annual report, and Amazon's 2014 10k annual report as the basis for information gathering.  Once all Amazon.com's 10k annual statements were collected, the author then inserted Amazon.com's income statement information and Amazon.com's balance sheet information into a customized financial template. 

Amazon.com Financial Statement Summary

Amazon.com revenues have been growing exponentially over the last several years.  The organization started 2015 with over $88 billion in revenues.  The company ended their 2018 year with well over $232 billion in revenues.  This shows that the company was able to generate triple the revenues and only a five-year time frame.  Not bad for any company.  As for net profits, the organization lost almost $240 million at the end of 2014.  However, the company had exponential growth in this area as well.  In 2018, the firm ended with over $10 billion in net profits.

Amazon Income Statement 2018

Column1 2018 2017 2016 2015 2014
Revenues                  232,887                  177,866                  135,987                  107,006                      88,988
COGS                  139,156                  111,934                    88,265                    71,651                      62,752
Gross Profit                    93,731                    65,932                    47,722                    35,355                      26,236
SG&A                      4,336                      3,674                      2,432                      1,747                        1,552
Depreciation                    15,341                    11,478                      8,116                      6,281                        4,746
R & D                    28,837                    22,620                    16,085                    12,540                        9,275
Other                         296                         214                         167                         171                           133
Operating Expenses                  220,466                  173,760                  131,801                  104,773                      88,810
EBIT                    12,421                      4,106                      4,186                      2,233                           178
Other Income                        (183)                        (300)                           90                        (256)                         (118)
Interest Expense                      1,417                         848                         484                         459                           210
EBT                    11,261                      3,806                      3,892                      1,568                         (111)
Taxes                      1,197                         769                      1,425                         950                         (167)
Net Income                   10,073                     3,033                     2,371                        596                        (241)

 

Amazon Balance Sheet 2018

Column1 2018 2017 2016 2015 2014
Cash                      31,750                  20,522                  19,334                  15,890                  14,557
Short Term Investment                        9,500                  10,464                    6,647                    3,918                    2,859
Account Receivable                      16,677                  13,164                    8,339                    6,423                    5,612
Inventory                      17,174                  16,047                  11,461                  10,243                    8,299
Other                              -                         -                         -                         -                         -
Current Assets                    75,101                60,197                45,781                35,705                31,327
Net PPE                      61,797                  48,866                  29,114                  21,838                  16,967
Goodwill                      14,548                  13,350                    3,784                    3,759                    3,319
Other                      11,202                    8,897                    4,723                    3,445                    2,892
Total Assets                  162,648              131,310                83,402                65,444                54,505
Accounts Payable                      38,192                  34,616                  25,309                  20,397                  16,459
Accrued Expense                      23,663                  18,170                  13,739                  10,372                    9,807
Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                              -                         -                         -                         -                         -
LT Debt - Current                              -                         -                         -                         -                         -
Other                              -                         -                         -                         -                         -
Total Current Liabilities                      68,391                  57,883                  43,816                  33,887                  28,089
LT Debt                      23,495                  27,743                    7,694                    8,227                    8,265
Other                      27,213                  20,975                  12,607                    9,249                    7,410
Total Liabilities                  119,099              103,601                64,117                52,060                43,764
Common Stock                               5                           5                           5                           5                           5
Treasury                        1,837                    1,837                    1,837                    1,837                    1,837
Retained Earnings                      19,625                    8,636                    4,916                    2,545                    1,949
Other                              -                         -                         -                         -                         -
Total Equity                    43,549                27,709                19,285                13,384                10,741
Total Equity & Liability                  162,648              131,310                83,402                65,444                54,505

Amazon.com Financial Ratio Summary

In this book, Amazon.com financial ratios they were analyzed included liquidity ratios, such as current ratio and quick ratio, asset utilization ratios, such as total asset turnover, and inventory turnover, profitability ratios, which included return on assets and return on equity, and then there were long-term debt ratios, which included debt ratio, and at times interest earned.  In reviewing these ratios and calculating them, the most impressive concept for take away would be the company’s cash position.  As noted in the book, the firm’s cash ratio has average approximately .45.  This means that the company has almost enough cash to pay half of their current liabilities for the next 12 months.  In my blowing amount of money sitting idle in their accounts.

Amazon 2018 Liquidity Ratios

Ratios 2018 2017 2016 2015 2014
Current Ratio                           1.10                    1.04                    1.04                    1.05                    1.12
Cash Ratio                           0.46                    0.35                    0.44                    0.47                    0.52
Quick Ratio                           0.85                    0.76                    0.78                    0.75                    0.82
Net Working Capital                         3,746                (3,053)                       86                  1,787                  2,202

Amazon 2018 Asset Utilization

Ratios 2018 2017 2016 2015 2014
Total Asset Turnover                           1.43                    1.35                    1.63                    1.64                    1.63
Fixed Asset Turnover                           3.77                    3.64                    4.67                    4.90                    5.24
Days Sales Outstanding                         26.14                  27.01                  22.38                  21.91                  23.02
Inventory Turnover                         13.56                  11.08                  11.87                  10.45                  10.72
Accounts Receivable Turnover                         13.96                  13.51                  16.31                  16.66                  15.86
Working Capital Turnover                         62.17                (58.26)             1,581.24                  59.88                  40.41
AP Turnover                           6.10                    5.14                    5.37                    5.25                    5.41
Average Days Inventory                           0.04                    0.03                    0.03                    0.03                    0.03
Average Days Payable                           0.02                    0.01                    0.01                    0.01                    0.01

Amazon 2018 - Profitability Ratios

Ratios 2018 2017 2016 2015 2014
Return on Assets 6.19% 2.31% 2.84% 0.91% -0.44%
Return on Equity 23.13% 10.95% 12.29% 4.45% -2.24%
Net Profit Margin 4.33% 1.71% 1.74% 0.56% -0.27%
Gross Profit Margin 40.25% 37.07% 35.09% 33.04% 29.48%
Operating Profit Margin 5.33% 2.31% 3.08% 2.09% 0.20%
Basic Earning Power 7.64% 3.13% 5.02% 3.41% 0.33%
ROCE 13.18% 5.59% 10.57% 7.08% 0.67%
Capital Employed                       94,257                73,427                39,586                31,557                26,416
ROIC 16.94% 7.15% 9.09% 3.73% -0.47%