Amazon Inc 100% Accurate

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Table of Contents

Amazon, Inc
Liquidity and Solvency Measurements
Capital Structure
Table of Contents
Tab No. (Click on tab link to access related section)
Liquidity 1
Net Working Capital
Working Capital pS
Quick Ratio (Acid Test)
Cash Ratio
Receivables Turnover
Average Collection Period
Free Cash-Flow pS
Cash-Flow pS
Solvency 2
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
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1) Liquidity

Amazon Liquidity Analysis
(In millions)
FINANCIAL CONDITION COMPANY INDUSTRY
Net Working Capital
Working Capital pS
Quick Ratio (Acid Test)
Cash Ratio
Receivables Turnover
Average Collection Period
Free Cash-Flow pS
Cash-Flow pS
*Industry: Internet Information Providers
Calculations
Net working capital = current assets - current liabilities
current asset
current liability
$0
Cash Ratio = (Cash equivalents + Cash) / Current liabilities
ERROR:#DIV/0!
Quick Ratio (Acid Test) = Current assets – Inventory) / Current Liabilities
current asset
inventory
current liability
ERROR:#DIV/0!
Receivable Turnover = Annual credit sales / Average accounts receivable
Credit sale
Beg. Acct Rec.
End. Acct Rec
ERROR:#DIV/0!
Average Collection Period = Days / Receivables Turnover
Days
Receivables Turnover
ERROR:#DIV/0!
Working Capital pS = (current assets - current liabilities) / #'S Outstanding Shares
current asset
current liability
Outstanding shares
ERROR:#DIV/0!
Free Cash Flow pS = Operating Cash Flow - Capital Expenditures) / Outstanding Shares
Oper. CF (million) -
Capital Exp. (million)
Outstanding shares
ERROR:#DIV/0!
Cash Flow pS = Operating Cash Flow - Preferred Dividend) / Outstanding Shares
Oper. CF (million) -
Preferred Dividend source:advfn.com
Outstanding shares
ERROR:#DIV/0!

2) Solvency

Amazon Solvency and Capital Structure Analysis
(In millions)
FINANCIAL CONDITION COMPANY INDUSTRY
Debt to Equity Ratio ERROR:#DIV/0! 0.10
Debt to Total Assets Ratio ERROR:#DIV/0! 0.05
Current Ratio ERROR:#DIV/0! 4.80
Times Interest Earned Ratio ERROR:#DIV/0! 2.50
*Industry: Internet Information Providers
Debt to Equity Ratio
Calculations
Debt / Equity Ratio = Total Debt / Total Equity
Total Debt / (in million)
Total Equity (in million)
ERROR:#DIV/0!
Debt to total Assets Ratio = Total Debt / Total Assets
Total Debt/
Total Assets (million)
ERROR:#DIV/0!
Current ratio
Current Ratio = Current Assets / Current Liabilities
Current Assets / (in million)
Current Liabilities (in million)
ERROR:#DIV/0!
Times Interest Earned Ratio= EBIT / Interest Expense
EBIT (million) /
Int. Expense (m)
ERROR:#DIV/0!

3) cost of debt

Amazon Cost of Debt Analysis
(In millions)
Cost of Debt= (Rf + credit risk rate)(1-T) Top Competitors Comparison
Risk Free Rate Cost of debt Cost of Equity
credit risk rate
Tax rate (1-24.5%)
0.00
Credit Risk Rate = ((Cost of debt /(1-T))-rf
Amazon
ERROR:#DIV/0! Credit Risk Rate =
source: wikkiwealth.com
Amaon Credit Rating by Moody

4) cost of equity

Amazon Cost of Equity
(In millions)
Cost of Equity(ra) = rrf + Ba(rm-rrf) Top Competitor Comparison
rrf =Risk Free Cost of debt Cost of Equity
Ba = Beta
rm = expected rate of return
rrf= Risk Free
0.00
Expected Rate of Return (rm) = ((ra -rrf) / Ba)) + rrf Amazon
rm = ERROR:#DIV/0!
Source:wikihealth.com

5)WACC

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 = The required return of the firm's Debt financing
(1-Tc) = The Tax adjustment for interest expense
(D/V) = (Debt/Total Value)
rE = the firm's cost of equity
(E/V) = (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 = 0.00%
Additional Data
Source:wikihealth.com

6) Capital Structure

Amazon Capital Structure
(In millions)
Fiscal Year ends in December
Current Historical
As of December 31, 2013 As of December 31, 2012 As of December 31, 2011
Type Amount Percentage Type Amount Percentage Type Amount Percentage
Debt 0 Debt 0 ERROR:#DIV/0! Debt 0 ERROR:#DIV/0!
Preferred 0 Preferred 0 Preferred 0
Equity 0 ERROR:#DIV/0! Equity 0 ERROR:#DIV/0! Equity 0 ERROR:#DIV/0!
$ - 0 ERROR:#DIV/0! $ - 0 ERROR:#DIV/0! $ - 0 ERROR:#DIV/0!
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 - 0 - 0 - 0
Total Equity - 0 - 0 - 0
Source: Amazon, Inc. 10K

Amazon's

Capital Structure

Debt Preferred Equity 0.0 0.0 0.0

2010

Debt Preferred Equity 0.0 0.0 0.0 Debt Preferred Equity 0.0 0.0 0.0

2009

Debt Preferred Equity 0.0 0.0 0.0