Question

Amazon Financial Statement
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions	12 Months Ended						Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017			Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016				Current assets:						Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Total net sales	$ 232,887	$ 177,866	$ 135,987				Cash and cash equivalents	$ 31,750	$ 20,522			Statement of Cash Flows [Abstract]
Operating expenses:							Marketable securities	9,500	10,464			CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	$ 21,856	$ 19,934	$ 16,175
Cost of sales	139,156	111,934	88,265				Inventories	17,174	16,047			OPERATING ACTIVITIES:
Fulfillment	34,027	25,249	17,619				Accounts receivable, net and other	16,677	13,164			Net income	10,073	3,033	2,371
Marketing Expense	13,814	10,069	7,233				Total current assets	75,101	60,197			Adjustments to reconcile net income to net cash from operating activities:
Technology and content	28,837	22,620	16,085				Property and equipment, net	61,797	48,866			Depreciation of property and equipment and other amortization, including capitalized content costs	15,341	11,478	8,116
General and administrative	4,336	3,674	2,432				Goodwill	14,548	13,350			Stock-based compensation	5,418	4,215	2,975
Other operating expense, net	296	214	167				Other assets	11,202	8,897			Other operating expense, net	274	202	160
Total operating expenses	220,466	173,760	131,801				Total assets	162,648	131,310			Other expense (income), net	219	(292)	(20)
Operating income (loss)	12,421	4,106	4,186				Current liabilities:					Deferred income taxes	441	(29)	(246)
Interest income	440	202	100				Accounts payable	38,192	34,616			Changes in operating assets and liabilities:
Interest expense	1,417	(848)	(484)				Accrued expenses and other	23,663	18,170			Inventories	(1,314)	(3,583)	(1,426)
Other income (expense), net	(183)	346	90				Unearned revenue	6,536	5,097			Accounts receivable, net and other	(4,615)	(4,780)	(3,436)
Total non-operating income (expense)	(1,160)	(300)	(294)				Total current liabilities	68,391	57,883			Accounts payable	3,263	7,100	5,030
Income before income taxes	11,261	3,806	3,892				Long-term debt	23,495	24,743			Accrued expenses and other	472	283	1,724
Provision for income taxes	1,197	(769)	(1,425)				Other long-term liabilities	27,213	20,975			Unearned revenue	1,151	738	1,955
Equity-method investment activity, net of tax	9	(4)	(96)				Commitments and contingencies (Note 7)					Net cash provided by (used in) operating activities	30,723	18,365	17,203
Net income	$ 10,073	$ 3,033	$ 2,371				Stockholders’ equity:					INVESTING ACTIVITIES:
Basic earnings per share	$ 20.68	$ 6.32	$ 5.01				Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none	0	0			Purchases of property and equipment	13,427	(11,955)	(7,804)
Diluted earnings per share	$ 20.14	$ 6.15	$ 4.90				Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 507 and 514 Outstanding shares - 484 and 491	5	5			Proceeds from property and equipment incentives	2,104	1,897	1,067
Weighted-average shares used in computation of earnings per share:							Treasury stock, at cost	(1,837)	(1,837)			Acquisitions, net of cash acquired, and other	(2,186)	(13,972)	(116)
Basic (in shares)	487	480	474				Additional paid-in capital	26,791	21,389			Sales and maturities of marketable securities	8,240	9,677	4,577
Diluted (in shares)	500	493	484				Accumulated other comprehensive loss	(1,035)	(484)			Purchases of marketable securities	(7,100)	(12,731)	(7,240)
Net product sales							Retained earnings	19,625	8,636			Net cash provided by (used in) investing activities	(12,369)	(27,084)	(9,516)
Total net sales	$ 141,915	$ 118,573	$ 94,665				Total stockholders’ equity	43,549	27,709			FINANCING ACTIVITIES:
Net service sales							Total liabilities and stockholders’ equity	$ 162,648	$ 131,310			Proceeds from long-term debt and other	768	16,228	618
Total net sales	$ 90,972	$ 59,293	$ 41,322									Repayments of long-term debt and other	(668)	(1,301)	(327)
												Principal repayments of capital lease obligations	(7,449)	(4,799)	(3,860)
												Principal repayments of finance lease obligations	(337)	(200)	(147)
												Net cash provided by (used in) financing activities	(7,686)	9,928	(3,716)
												Foreign currency effect on cash, cash equivalents, and restricted cash	(351)	713	(212)
												Net increase (decrease) in cash, cash equivalents, and restricted cash	10,317	1,922	3,759
												CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	32,173	21,856	19,934
												SUPPLEMENTAL CASH FLOW INFORMATION:
												Cash paid for interest on long-term debt	854	328	290
												Cash paid for interest on capital and finance lease obligations	575	319	206
												Cash paid for income taxes, net of refunds	1,184	957	412
												Property and equipment acquired under capital leases	10,615	9,637	5,704
												Property and equipment acquired under build-to-suit leases	$ 3,641	$ 3,541	$ 1,209

Compute the following ratios:

Current Ratio

Debt to Asset Ratio

Return on Equity

Return on Assets

Inventory Turnover

Days in Inventory

Times Interest Earned

Free Cash Flow

Gross Profit Rate

Profit Margin

Asset Turnover

Answer 1

Current ratio	Current assets / current liabilities	75,101 / 68,391	1.09
Debt to asset ratio	Total liabilities / Total assets	119,099 / 162,648	73.23%
Return on equity	Net Income / Average equity	10,073 / (43,549 + 27,709) / 2	28.27%
Return on assets	Net Income / Average total assets	10,073 / (162,648 + 131,310) / 2	6.85%
Inventory turnover	Cost of sales / Average Inventory	139,156 / (17,174 + 16,047) / 2	8.38
Days in inventory	1 / Inventory turnover X 365	1 / 8.38 X 365	43.57
Times interest earned	(Income before tax + Interest expense) / Interest expense	(11,261 + 1,417) / 1,417	8.95
Free cash flow	Income from operation - Puchase of property	30,723 - 13,427	$      17,296	million
Gross Profit rate	(sales - cost of sales) / Sales	(232,887 - 139,156) / 232,887	40.25%
Profit margin	Net income / Sales	10,073 / 232,887	4.33%
Asset turnover	Sales / average total assets	232,887 / (162,648 + 131,310) / 2	1.58