Amazon Inc 100% Accurate

Amazon, Inc
Liquidity and Solvency Measurements
Capital Structure
Table of Contents
Tab No. (Click on tab link to access related section)
1

Liquidity
Net Working Capital
Working Capital pS
Quick Ratio (Acid Test)
Cash Ratio
Receivables Turnover
Average Collection Period
Free Cash-Flow pS
Cash-Flow pS

2

Solvency
Debt to Equity Ratio
Debt to Total Assets Ratio
Current Ratio
Times Interest Earned Ratio

Cost of Debt

3

Cost of Equity

4

WACC

5

Capital Structure

6

Amazon Liquidity Analysis
(In millions)
FINANCIAL CONDITION
Net Working Capital
Working Capital pS
Quick Ratio (Acid Test)
Cash Ratio
Receivables Turnover
Average Collection Period
Free Cash-Flow pS
Cash-Flow pS

COMPANY

INDUSTRY

*Industry: Internet Information Providers

Calculations
Net working capital =
current assets - current liabilities
current asset
current liability
$0
Cash Ratio =
(Cash equivalents + Cash) /
Current liabilities
#DIV/0!

Quick Ratio (Acid Test) =
Current assets – Inventory) / Current
Liabilities

current asset
inventory
current liability
#DIV/0!
Receivable Turnover =
Annual credit sales / Average
accounts receivable

Credit sale
Beg. Acct Rec.
End. Acct Rec
#DIV/0!

Average Collection Period =
Days / Receivables Turnover
Days
Receivables Turnover
#DIV/0!
Working Capital pS =
(current assets - current liabilities) /
#'S Outstanding Shares
current asset
current liability
Outstanding shares
#DIV/0!
Free Cash Flow pS =
Operating Cash Flow - Capital
Expenditures) / Outstanding Shares
Oper. CF (million) Capital Exp. (million)
Outstanding shares
#DIV/0!
Cash Flow pS =
Operating Cash Flow - Preferred
Dividend) / Outstanding Shares
Oper. CF (million) Preferred Dividend
Outstanding shares
#DIV/0!

source:advfn.com

Amazon Solvency and Capital Structure Analysis
(In millions)
FINANCIAL CONDITION
Debt to Equity Ratio
Debt to Total Assets Ratio
Current Ratio
Times Interest Earned Ratio

COMPANY

INDUSTRY
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!

0.10
0.05
4.80
2.50

*Industry: Internet Information Providers

Debt to Equity Ratio
Calculations
Debt / Equity Ratio = Total
Debt / Total Equity
Total Debt /
Total Equity

(in million)
(in million)

#DIV/0!
Debt to total Assets Ratio =
Total Debt / Total Assets
Total Debt/
Total Assets (million)
#DIV/0!
Current ratio
Current Ratio =
Current Assets / Current Liabilities
Current Assets / (in million)
Current Liabilities (in million)
#DIV/0!
Times Interest Earned Ratio=
EBIT / Interest Expense
EBIT (million) /
Int. Expense (m)
#DIV/0!

Amazon Cost of Debt Analysis
(In millions)

Cost of Debt=
(Rf + credit risk rate)(1-T)

Top Competitors Comparison
Risk Free Rate
credit risk rate
Tax rate (1-24.5%)

Cost of debt

0.00
Credit Risk Rate = ((Cost of debt /(1-T))-rf
Amazon
#DIV/0! Credit Risk Rate =

source: wikkiwealth.com

Amaon Credit Rating by Moody

Cost of
Equity

Amazon Cost of Equity
(In millions)

r

Cost of Equity( a) =

rrf + Ba(rm-rrf)

rrf =Risk Free

Top Competitor Comparison
Cost of debt

Ba = Beta
m = expected rate of return

r
rrf= Risk Free
0.00

r

r r

r

Expected Rate of Return ( m) = (( a - rf) / Ba)) + rf

rm =

Source:wikihealth.com

#DIV/0!

Amazon

Cost of Equity

Amazon Weighted Average Cost of Capital
(In millions)
Formula
WACC = Weighted average cost of capital
rD (1- Tc )*( D / V )+ rE *( E / V )
Where:
rD =
(1-Tc) =
(D/V) =
rE =
(E/V) =

The required return of the firm's Debt financing
The Tax adjustment for interest expense
(Debt/Total Value)
the firm's cost of equity
(Equity/Total Value)

WACC Calculation
rD =
(1-Tc) =
(D/V) =
rE =
(E/V) =
Total Debt D =
Total Equity E =
Total Firm Value =
rE = rf+B(rM-Rf) =
Risk Free rate rf =
Historical Mkt return rm =
Beta =
WACC =

Additional Data

Source:wikihealth.com

0.00%

Amazon Capital Structure
(In millions)
Fiscal Year ends in December

Current
As of December 31, 2013
Type
Amount
Percentage
Debt
0
Preferred
0
Equity
0
#DIV/0!
$#DIV/0!

Historical
As of December 31, 2012
Type
Amount
Percentage
Debt
0
#DIV/0!
Preferred
0
Equity
0
#DIV/0!
$#DIV/0!

As of December 31, 2011
Type
Amount
Percentage
Debt
0
#DIV/0!
Preferred
0
Equity
0
#DIV/0!
$#DIV/0!

2010

Amazon's
Capital Structure

2009

Debt
Debt
Preferred
Equity

Preferred
Equity

Financial Data:
Amazon, Inc.
Class A Balance Sheet
Fiscal year ends in December.
(In millions)
Liabilities and stockholders' equity

2011-12

2010-12

2009-12

Liabilities
Current liabilities
Short-term debt
Accounts payable
Taxes payable
Accrued liabilities
Deferred revenues
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term debt
Deferred taxes liabilities
Deferred revenues
Other long-term liabilities
Total non-current liabilities
Total liabilities
Stockholders' equity
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income
Total stockholders' equity
Total liabilities and stockholders' equity
Total Debt
Total Equity
Source: Amazon, Inc. 10K

Debt
Preferred
Equity