For amazon company The purpose of this project is to help you synthesize many im

Question

For amazon company The purpose of this project is to help you synthesize many important aspects of financial analysis. You will read and use financial information presented by a company in the form of an annual rep. This activity helps you learn to gather information and become aware of the sources of financial information and then interpret, analyze, and use the information to evaluate the publicly traded company of your choice. In this project, each group is required to select a firm listed on Bahrain Bourse, collect the relevant information, and make a discussion on their selected firm's capital structure policies over the past five years. This project is designed to improve students' ability to 1. Develop a thorough understanding of relevant theories and practices on capital structure 2. Collect relevant data, critically analyze the data, and interpret the data. 3. Write a report and present their findings. 4. Conduct effective teamwork with other group members.

Explanation / Answer

Presenting the answer for Amazon Com Inc.

Source of data (required in the question): website of US Securities and Exchange Commision, under the 'company filings' head. Using the report published under the filings of 10-K i.e. the annual report.

Year 2016; the company mentions entering into a $500 million secured revolving credit facility (“Credit Facility”) with a lender. This facility is avialable for a term of 3 years. The company has pledged $579 million of their cash and receivables as collateral for the debt related to the credit facility.

In November 2012 and December 2014, Amazon issued $3.0 billion and $6.0 billion of unsecured senior notes, of which $8.3 billion is outstanding in 2016.

Company also finances using the common stock offering to the public. As in 2016 end, there is an outstanding of $5 million in the common stock.

Apart from the debt and shares, company also has long term liabilities in shape of construction liabilities, finance/capital lease obligations and tax contingencies.

Debt does not include other long term liabilities. The weights of debt and equity are $8227 million and $13384 million respectively, in the year ending 2015, whereas, there's a significant increase in stockholders' equity to $19285 million in 2016 and decline in debt to $7694 million.

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