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Using the Amazon Financial Analysis (FY 2011 – FY 2008) and Key Ratio Comparison

ID: 2422156 • Letter: U

Question

Using the Amazon Financial Analysis (FY 2011 – FY 2008) and Key Ratio Comparison, calculate the missing values. (Enter your answers in thousands of dollars. Round your answers to 2 decimal place. Omit the "$" & "%" signs in your response.)

    

   

Amazon Financial Analysis (data in thousands [000s], excluding per share data and financial ratios) FY 2012   Revenue $ 61,093,000   Cost of Revenue 44,271,000   Gross Profit   Gross Profit Margin   EBIT 672,000   Income Tax 428,000   NOPAT (Net Operating Profit After Taxes) 244,000   Net Income (includes discontinued operations) $ (39,000)   Diluted Weighted Average Shares 453,000   Dividends per Share -   Diluted Normalized EPS (continuing operations) (0.09)   Cash Cycle FY 2012   Revenue per day   Accounts Receivable 2,600,000   Receivable Days   Inventory 6,031,000   Inventory Days   Accounts Payable 13,318,000   Payable Days   Cash Cycle (days) ()   Key Ratios FY 2012   Market Value of Book Equity   Price per share* 250.87   Earnings per share (continuing operations) ()   P/E Ratio ()   Return on Invested Capital 0.01   Return on Assets ()   Return on Equity ()   Return on Revenue ()   Total Assets 32,555,000   Current Assets 21,296,000   Current Liabilities 19,002,000   Current Ratio   Total Liabilities   Liabilities/Equity Ratio   Total Equity (book value) 8,192,000.0   Shareholders' Equity (minority interests) -   Market to Book Value   Per Employee FY 2012   Number of Employees (continuing operations) 88.4   Revenue   Net Income ()   Market Value

Explanation / Answer

Amazon Financial Analysis FY 2012   Revenue 610,93,000   Cost of Revenue 442,71,000   Gross Profit 168,22,000   Gross Profit Margin 0.2754 27.54   EBIT 6,72,000   Income Tax 4,28,000   NOPAT (Net Operating Profit After Taxes) 2,44,000   Net Income (includes discontinued operations) -39,000   Diluted Weighted Average Shares 4,53,000   Dividends per Share (244000+39000)= 283000/453000 0.62   Diluted Normalized EPS (continuing operations)Net Income=-0.09*453000= -40770 -0.09   Cash Cycle FY 2012   Revenue per day                                                                                                        61093000/365= 167378   Accounts Receivable 26,00,000   Receivable Days                                                                                                       2600000/167378= 16 16 Days   Inventory 60,31,000   Inventory Days   =COGS/Inventory =                                                            44271000/6031000=    7 7 days   Accounts Payable 133,18,000   Payable Days          =COGS/Accounts Payables =                                     44271000/13318000=     3 3 days   Cash Cycle (days) 16+7-3= 20 days   Key Ratios FY 2012   Market Value of Book Equity   Price per share* 250.87   Earnings per share (continuing operations) -0.09   P/E Ratio Market price /share / Earnings /share= 250.87/-0.09 = -2787   Return on Invested Capital= (net Income-Dividends)/Total Capital=-39000- 0.01   Return on Assets   Net Income/Total assets = (-39000)/ 32555000 -0.001   Return on Equity   Net Income/total Equity = -39000/ 8192000 -0.005   Return on Revenue Net Income/Revenue= -39000/61093000 -0.001   Total Assets 325,55,000   Current Assets 212,96,000   Current Liabilities 190,02,000   Current Ratio Current Assets/Current Liabilities = 21296000/19002000 1.12   Total Liabilities = Total Assets 325,55,000   Liabilities/Equity Ratio = 32555000/8192000 3.97   Total Equity (book value) 81,92,000.00   Shareholders' Equity (minority interests) 8192000   Market to Book Value   =(250.87*453000)/8192000 13.87   Per Employee FY 2012   Number of Employees (continuing operations) 88.4   Revenue =61093000/88.4 691097.29   Net Income =-39000/88.4 -441.18   Market Value 250.87*453000)/88.4 1285566.86

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