Balance Sheet_Horizontal
AMAZON.COM, INC
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
ASSETS 2018 2017 Change in $ Change in %
Cu
ent assets:
Cash and cash equivalents 31,750 20,522 11,228 XXXXXXXXXX
Marketable securities 9,500 10,464 -964 XXXXXXXXXX
Inventories 17,174 16,047 1,127 XXXXXXXXXX
Accounts receivable, net and other 16,677 13,164 3,513 XXXXXXXXXX
Total cu
ent assets 75,101 60,197 14,904 XXXXXXXXXX
Property and equipment, net 61,797 48,866 12,931 XXXXXXXXXX
Goodwill 14,548 13,350 1,198 XXXXXXXXXX
Other assets 11,202 8,897 2,305 XXXXXXXXXX
Total assets 162,648 131,310 31,338 XXXXXXXXXX
LIABILITIES AND STOCKHOLDERS’ EQUITY
Cu
ent liabilities:
Accounts payable 38,192 34,616 3,576 XXXXXXXXXX
Accrued expenses and other 23,663 18,170 5,493 XXXXXXXXXX
Unearned revenue 6,536 5,097 1,439 XXXXXXXXXX
Total cu
ent liabilities 68,391 57,883 10,508 XXXXXXXXXX
Long-term debt 23,495 24,743 -1,248 XXXXXXXXXX
Other long-term liabilities 27,213 20,975 6,238 XXXXXXXXXX
Stockholders’ equity:
Prefe
ed stock, $0.01 par value:
Authorized shares — 500
Issued and outstanding shares — none
Common stock, $0.01 par value:
Authorized shares — 5,000
Issued shares — 507 and 514
Outstanding shares — 484 and 491 5 5 0 0
Treasury stock, at cost -1,837 -1,837 0 0
Additional paid-in capital 26,791 21,389 5,402 XXXXXXXXXX
Accumulated other comprehensive loss -1,035 -484 -551 XXXXXXXXXX
Retained earnings 19,625 8,636 10,989 XXXXXXXXXX
Total stockholders’ equity 43,549 27,709 15,840 XXXXXXXXXX
Total liabilities and stockholders’ equity 162,648 131,310 31,338 XXXXXXXXXX
Balance Sheet_Component %
AMAZON.COM, INC
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
Component %
ASSETS 2018 2017 2018 2017
Cu
ent assets:
Cash and cash equivalents 31,750 20,522 19.52% 15.63%
Marketable securities 9,500 10,464 5.84% 7.97%
Inventories 17,174 16,047 10.56% 12.22%
Accounts receivable, net and other 16,677 13,164 10.25% 10.03%
Total cu
ent assets 75,101 60,197 46.17% 45.84%
Property and equipment, net 61,797 48,866 37.99% 37.21%
Goodwill 14,548 13,350 8.94% 10.17%
Other assets 11,202 8,897 6.89% 6.78%
Total assets 162,648 131,310 100.00% 100.00%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Cu
ent liabilities:
Accounts payable 38,192 34,616 23.48% 26.36%
Accrued expenses and other 23,663 18,170 14.55% 13.84%
Unearned revenue 6,536 5,097 4.02% 3.88%
Total cu
ent liabilities 68,391 57,883 42.05% 44.08%
Long-term debt 23,495 24,743 14.45% 18.84%
Other long-term liabilities 27,213 20,975 16.73% 15.97%
Stockholders’ equity:
Prefe
ed stock, $0.01 par value:
Authorized shares — 500
Issued and outstanding shares — none
Common stock, $0.01 par value:
Authorized shares — 5,000
Issued shares — 507 and 514
Outstanding shares — 484 and 491 5 5 0.00% 0.00%
Treasury stock, at cost -1,837 -1,837 -1.13% -1.40%
Additional paid-in capital 26,791 21,389 16.47% 16.29%
Accumulated other comprehensive loss -1,035 -484 -0.64% -0.37%
Retained earnings 19,625 8,636 12.07% 6.58%
Total stockholders’ equity 43,549 27,709 26.77% 21.10%
Total liabilities and stockholders’ equity 162,648 131,310 100.00% 100.00%
Operation_Horizontal
AMAZON.COM, INC
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
Particulars 2018 2017 2016 Change 2017 to 2018 Change 2016 to 2017
Amount % Amount %
Net product sales 141,915 118,573 94,665 23,342 19.69% 23,908 25.26%
Net service sales 90,972 59,293 41,322 31,679 53.43% 17,971 43.49%
Total net sales 232,887 177,866 135,987 55,021 30.93% 41,879 30.80%
Operating expenses:
Cost of sales 139,156 111,934 88,265 27,222 24.32% 23,669 26.82%
Fulfillment 34,027 25,249 17,619 8,778 34.77% 7,630 43.31%
Marketing 13,814 10,069 7,233 3,745 37.19% 2,836 39.21%
Technology and content 28,837 22,620 16,085 6,217 27.48% 6,535 40.63%
General and administrative 4,336 3,674 2,432 662 18.02% 1,242 51.07%
Other operating expense, net 296 214 167 82 38.32% 47 28.14%
Total operating expenses 220,466 173,760 131,801 46,706 26.88% 41,959 31.84%
Operating income 12,421 4,106 4,186 8,315 202.51% -80 -1.91%
Interest income 440 202 100 238 117.82% 102 102.00%
Interest expense -1,417 -848 -484 -569 67.10% -364 75.21%
Other income (expense), net -183 346 90 -529 -152.89% 256 284.44%
Total non-operating income (expense) -1,160 -300 -294 -860 286.67% -6 2.04%
Income before income taxes 11,261 3,806 3,892 7,455 195.87% -86 -2.21%
Provision for income taxes -1,197 -769 -1,425 -428 55.66% 656 -46.04%
Equity-method investment activity, net of tax 9 -4 -96 13 -325.00% 92 -95.83%
Net income 10,073 3,033 2,371 7,040 232.11% 662 27.92%
Basic earnings per share 20.68 6.32 5.01
Diluted earnings per share 20.14 6.15 4.9
Weighted-average shares used in computation of earnings per share:
Basic 487 480 474
Diluted 500 493 484
Operation_Component %
AMAZON.COM, INC
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
Component Percentages
Particulars 2018 2017 2016 2018 2017 2016
Net product sales 141,915 118,573 94,665 100.00% 100.00% 100.00%
Net service sales 90,972 59,293 41,322 64.10% 50.01% 43.65%
Total net sales 232,887 177,866 135,987 164.10% 150.01% 143.65%
Operating expenses:
Cost of sales 139,156 111,934 88,265 98.06% 94.40% 93.24%
Fulfillment 34,027 25,249 17,619 23.98% 21.29% 18.61%
Marketing 13,814 10,069 7,233 9.73% 8.49% 7.64%
Technology and content 28,837 22,620 16,085 20.32% 19.08% 16.99%
General and administrative 4,336 3,674 2,432 3.06% 3.10% 2.57%
Other operating expense, net 296 214 167 0.21% 0.18% 0.18%
Total operating expenses 220,466 173,760 131,801 155.35% 146.54% 139.23%
Operating income 12,421 4,106 4,186 8.75% 3.46% 4.42%
Interest income 440 202 100 0.31% 0.17% 0.11%
Interest expense -1,417 -848 -484 -1.00% -0.72% -0.51%
Other income (expense), net -183 346 90 -0.13% 0.29% 0.10%
Total non-operating income (expense) -1,160 -300 -294 -0.82% -0.25% -0.31%
Income before income taxes 11,261 3,806 3,892 7.94% 3.21% 4.11%
Provision for income taxes -1,197 -769 -1,425 -0.84% -0.65% -1.51%
Equity-method investment activity, net of tax 9 -4 -96 0.01% -0.00% -0.10%
Net income 10,073 3,033 2,371 7.10% 2.56% 2.50%
Basic earnings per share 20.68 6.32 5.01
Diluted earnings per share 20.14 6.15 4.9
Weighted-average shares used in computation of earnings per share:
Basic 487 480 474
Diluted 500 493 484
Ratio Analysis
Ratio Formula 2018 2017
1 Retrun on Equity Net Profit / Total Capital 23.13% 10.95%
2 Earnings per Share Net Profit / Number of Shares O/s 20.68 6.32
3 Total Assets Turnover Ratio Total Revenue / Total Assets XXXXXXXXXX XXXXXXXXXX
4 Inventory Turnover Ratio Sales / Average Inventory XXXXXXXXXX XXXXXXXXXX
5 Cu
ent Ratio Cu
ent Assets / Cu
ent Liabilities XXXXXXXXXX XXXXXXXXXX
6 Debt-Equity Ratio Debt / Equity XXXXXXXXXX XXXXXXXXXX
7 Price Earning Ratio Market Price per Share / Earnings Per Share XXXXXXXXXX XXXXXXXXXX
1. Please answer the following questions in detail and refer to the Accounting Final excel sheet:
1. Explain the Horizontal Analysis of the Balance Sheet with comments about the key differences. Please include the statement and the answer after.
2. Explain the Horizontal Analysis of the Income Statement with comments about the key differences. Please include the statement and the answer after.
3. Explain the Component Percentage Income Statement with comments about the key differences. Include the statement and the answer after.
4. Explain the Component Percentage Balance Sheet with comments about the key differences. Include the statement and the answer after.
5. Present the seven financial ratios that show the two-year trend and use graphs or charts for visualization of the trend analysis. Explain the meaning of each ratio and comment about the company's ratio values. You should have 7 different ratios for this answer. (This is a long one)
6. Use the MD&A section of the annual report to explain the results of the analysis of your company.
7. Would you buy stock in the company you selected? Why or why not?
The company Selected: Amazon