Amazon and Ebay Financial Statements Paper and Excel Sheet

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Enpury_B

Business Finance

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I need 2 paragraphs for a homework question that I have. The purpose of this assignment is to analyze the financial statements of two companies, in this assignment, it will be amazon and ebay. The two paragraphs will focus on analyzing Receivable turnover and receivable turnover only. 

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Amazon's 10-K for 2017 https://www.sec.gov/Archives/edgar/data/1018724/000101872418000005/amzn-20171231x10k.h To search for corproate filings, use the following link https://www.sec.gov/edgar/searchedgar/companysearch.html 000005/amzn-20171231x10k.htm#sF2423AEEA7FB5EE886EF78CF9324C2CE AMAZON Consolidated Statement of Operations (In millions of dollars) Fiscal Year Ended December 31 Net product sales Net service sales Total net sales Cost of sales Gross profit Operating expenses: Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net Total operating expenses Income from operations Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income 2017 Percent $ 118.573 59.293 177.866 66,7% 33,3% 100,0% 111.934 65.932 2016 94.665 41.322 135.987 70% 30% 100,0% 62,9% 37,1% 88.265 47.722 25.249 10.069 22.620 3.674 214 61.826 14,2% 5,7% 12,7% 2,1% 0,1% 34,8% 4.106 2,3% 202 (848) 346 (300) 3.806 (769) (4) 3.033 $ Percent 0,1% -0,5% 0,2% -0,2% 74% 26% 100,0% 64,9% 35,1% 71.651 35.355 17.619 7.233 16.085 2.432 167 43.536 13,0% 5,3% 11,8% 1,8% 0,1% 32,0% 4.186 3,1% 100 (484) 90 (294) 0,1% -0,4% 0,1% -0,2% 3.892 2,9% -0,4% 0,0% (1.425) (96) -1,0% -0,1% 2.371 1,74% $ $ Percent 79.268 27.738 107.006 2,1% 1,71% 2015 Percent Five-year Average % 60.903 13.549 74.452 82% 18% 100,0% 74,2% 25,8% 100,0% 2013 79% 21% 100,0% 67,0% 33,0% 62.752 26.236 70,5% 29,5% 54.181 20.271 72,8% 27,2% 67,6% 32,4% 13.410 5.254 12.540 1.747 171 33.122 12,5% 4,9% 11,7% 1,6% 0,2% 31,0% 10.766 4.332 9.275 1.552 133 26.058 12,1% 4,9% 10,4% 1,7% 0,1% 29,3% 8.585 3.133 6.565 1.129 114 19.526 11,5% 4,2% 8,8% 1,5% 0,2% 26,2% 12,7% 5,0% 11,1% 1,7% 0,1% 30,6% 2.233 2,1% 178 0,2% 745 1,0% 1,7% 0,0% -0,4% -0,2% -0,6% 39 (210) (118) (289) 0,0% -0,2% -0,1% -0,3% 38 (141) (136) (239) 0,1% -0,2% -0,2% -0,3% 0,1% -0,3% -0,1% -0,3% 1,5% (111) -0,1% 506 0,7% 1,4% (950) (22) -0,9% 0,0% (167) 37 -0,2% 0,0% (161) (71) -0,2% -0,1% -0,6% 0,0% 596 0,56% (241) -0,27% 274 0,37% 0,8% 1.568 $ Percent 70.080 18.908 88.988 50 (459) (256) (665) $ 2014 $ $ $ AMAZON Consolidated Balance Sheet (In millions of dollars) 2017 Percent 2016 Percent 2015 Percent 2014 Percent 2013 Percent Five-year Average % December 31, Assets Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets $ 20.522 10.464 16.047 13.164 60.197 15,6% 8,0% 12,2% 10,0% 45,8% $ 19.334 6.647 11.461 8.339 45.781 23,2% 8,0% 13,7% 10,0% 54,9% $ 15.890 3.918 10.243 5.654 35.705 24,5% 6,1% 15,8% 8,7% 55,1% $ 14.557 2.859 8.299 5.612 31.327 26,7% 5,2% 15,2% 10,3% 57,5% $ 8.658 3.789 7.411 4.767 24.625 21,6% 9,4% 18,5% 11,9% 61,3% 22,3% 7,3% 15,1% 10,2% 54,9% Fixed assets, net Goodwill Other assets Total assets 48.866 13.350 8.897 $ 131.310 37,2% 10,2% 6,8% 100,0% 29.114 3.784 4.723 $ 83.402 34,9% 4,5% 5,7% 100,0% 21.838 3.759 3.445 $ 64.747 33,7% 5,8% 5,3% 100,0% 16.967 3.319 2.892 $ 54.505 31,1% 6,1% 5,3% 100,0% 10.949 2.655 1.930 $ 40.159 27,3% 6,6% 4,8% 100,0% 32,8% 6,6% 5,6% 100,0% 2014 Percent 2013 Percent Liabilities and Stockholders' Equity 2017 Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term debt Other long-term liabilities Total Liabilities Stockholders’ equity: Common Stock Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings (accumulated deficit) Total stockholders’ equity Total liabilities and stockholders’ equity $ 34.616 18.170 5.097 57.883 Percent 2016 $ 25.309 13.739 4.768 43.816 24.743 20.975 26,4% 13,8% 3,9% 44,1% 0,0% 18,8% 16,0% 103.601 5 (1.837) 21.389 (484) 8.636 27.709 $ 131.310 Percent 2015 Percent Five-year Average % $ 20.397 10.384 3.118 33.899 31,5% 16,0% 4,8% 52,4% $ 16.459 9.807 1.823 28.089 30,2% 18,0% 3,3% 51,5% $ 15.133 6.688 1.159 22.980 37,7% 16,7% 2,9% 57,2% 7.694 12.607 30,3% 16,5% 5,7% 52,5% 0,0% 9,2% 15,1% 8.227 9.249 12,7% 14,3% 8.265 7.410 15,2% 13,6% 3.191 4.242 7,9% 10,6% 31,2% 16,2% 4,1% 51,5% 0,0% 12,8% 13,9% 78,9% 64.117 76,9% 51.375 79,3% 43.764 80,3% 30.413 75,7% 78,2% 0,0% -1,4% 16,3% -0,4% 6,6% 21,1% 5 (1.837) 17.186 (985) 4.916 19.285 0,0% -2,2% 20,6% -1,2% 5,9% 23,1% 5 (1.837) 13.394 (723) 2.545 13.384 0,0% -2,8% 20,7% -1,1% 3,9% 20,7% 5 (1.837) 11.135 (511) 1.949 10.741 0,0% -3,4% 20,4% -0,9% 3,6% 19,7% 5 (1.837) 9.573 (185) 2.190 9.746 0,0% -4,6% 23,8% -0,5% 5,5% 24,3% 0,0% -2,9% 20,4% -0,8% 5,1% 21,8% 100,0% 100,0% 100,0% $ 83.402 100,0% $ 64.759 100,0% $ 54.505 100,0% $ 40.159 AMAZON Condensed Statement of Cash Flows (In millions of dollars) Fiscal Year Ended December 31 Cash from operating activities Cash from investing activities Cash from financing activities $ 2017 18.434 $ (27.819) 9.860 Effect of exchange rates 713 Net change in cash Cash, beginning of year Cash, end of year 1.188 19.334 20.522 $ 2016 17.272 $ (9.876) (3.740) (212) $ 3.444 15.890 19.334 2015 12.039 $ (6.450) (3.882) (374) $ 1.333 14.557 15.890 2014 6.848 $ (5.065) 4.426 (310) $ 5.899 8.658 14.557 2013 5.553 (4.276) (617) (86) $ 574 8.658 AMAZON Profitability ratios Gross profit margin Net profit margin Retun on equity Return on assets Efficiency ratios Receivable turnover Inventory turnover Total asset turnover Gross profit / Net Sales Net income / Net Sales Net income / Average Shareholders' equity Net income / Average total assets 2017 Ratio 37,1% 1,7% 12,9% 2,8% 2016 Ratio 35,1% 1,7% 14,5% 3,2% 2015 Ratio 33,0% 0,6% 4,9% 1,0% Net Sales / Average Accounts Receivables, Net Cost of goods sold / Average inventory Sales / Average total assets 16,54 8,14 1,66 19,44 8,13 1,84 19,00 7,73 1,79 Formula Liquidity ratios Current ratio Ending current assets / Ending current liabilities Quick ratio (acid test) (Ending current assets - Ending inventory) / Ending current liabilities Current cash debt coverage Cash provided by operations / Average current liabilities Solvency ratios Debt to assets Times interest earned Cash debt coverage Ending total liabilities / Ending total assets Earnings before interest and taxes / Interest expense Cash provided by operations / Average total liabilities Notes 2015 much lower because smaller NI Ebay's 10-K for 2017 https://www.sec.gov/ix?doc=/Archives/edgar/data/1065088/000106508818000009/ebay201710-k. To search for corproate filings, use the following link https://www.sec.gov/edgar/searchedgar/companysearch.html 6508818000009/ebay201710-k.htm EBAY Consolidated Statement of Earnings (In millions of dollars) Fiscal Year Ended December 31 Net revenues Cost of net revenues Gross profit 2017 Percent 2016 Percent $ 9.567 2.222 7.345 100,0% 23,2% 76,8% $ 8.979 2.007 6.972 100,0% 22,4% 77,6% Operating expenses: Sales and marketing Product development General and administrative Provision for transaction losses Amortization of acquired intangible assets Total operating expenses 2.515 1.224 1.031 272 38 5.080 26,3% 12,8% 10,8% 2,8% 0,4% 53,1% 2.368 1.114 900 231 34 4.647 Income from operations 2.265 23,7% Interest and other income, net Income before income taxes 11 2.276 Provision for income taxes (3.288) Income (loss) from continuing operations Income (loss) from discontinued operations (net of tax) Net income $ Percent 8.592 1.771 6.821 100,0% 20,6% 79,4% 26,4% 12,4% 10,0% 2,6% 0,4% 51,8% 2.267 923 1.122 271 41 4.624 2.325 25,9% 0,1% 23,8% 1.326 3.651 14,8% 40,7% -34,4% 3.634 40,5% (1.012) $ 7.266 $ $ Percent Five-year Average % 8.257 1.492 6.765 100,0% 18,1% 81,9% 100,0% 20,3% 79,7% 2013 26,4% 10,7% 13,1% 3,2% 0,5% 53,8% 2.442 983 889 262 75 4.651 27,8% 11,2% 10,1% 3,0% 0,9% 52,9% 2.144 915 880 236 136 4.311 26,0% 11,1% 10,7% 2,9% 1,6% 52,2% 26,8% 11,6% 10,8% 2,9% 0,8% 52,8% 2.197 25,6% 2.476 28,2% 2.454 29,7% 26,9% 209 2.406 2,4% 28,0% 39 2.515 0,4% 28,6% 117 2.571 1,4% 31,1% 3,3% 30,1% -5,3% (3.380) -38,5% -6,1% -13,7% 34,59% 21,0% 1.725 $ (504) (865) (222) 80,92% Percent 100,0% 18,9% 81,1% 1.947 (19) -10,62% 2014 8.790 1.663 7.127 (459) 7.285 (4) $ (1.016) 2015 2.067 911 20,08% $ 46 789 0,52% $ 2.856 EBAY Consolidated Balance Sheet (In millions of dollars) December 31, Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Other current assets Total current assets Long-term investments Property and equipment, net Goodwill Intangible assets, net Other assets Total assets 2017 $ Percent 2.120 3.743 695 1.185 7.743 8,2% 14,4% 2,7% 4,6% 29,8% 6.331 1.597 4.773 69 5.468 $ 25.981 24,4% 6,1% 18,4% 0,3% 21,0% 100,0% 2016 $ Percent 1.816 5.333 592 1.134 8.875 7,6% 22,4% 2,5% 4,8% 37,2% 3.969 1.516 4.501 102 4.884 $ 23.847 16,6% 6,4% 18,9% 0,4% 20,5% 100,0% 2015 $ Percent 1.832 4.299 619 1.154 7.904 10,3% 24,2% 3,5% 6,5% 44,5% 3.391 1.554 4.451 90 365 $ 17.755 19,1% 8,8% 25,1% 0,5% 2,1% 100,0% 2014 $ Percent 4.105 3.730 600 18.096 26.531 9,1% 8,3% 1,3% 40,1% 58,8% 5.736 1.486 4.671 133 6.575 $ 45.132 12,7% 3,3% 10,3% 0,3% 14,6% 100,0% 2013 $ Percent Five-year Average % 4.494 4.531 899 13.359 23.283 10,8% 10,9% 2,2% 32,2% 56,1% 7,7% 13,4% 2,0% 14,7% 37,7% 4.971 2.760 9.267 941 266 $ 41.488 12,0% 6,7% 22,3% 2,3% 0,6% 100,0% 14,1% 5,2% 15,8% 0,6% 9,8% 83,3% Liabilities and Stockholders' Equity 2017 Current liabilities: Short-term debt Accounts payable Accrued expenses and other current liabilities Deferred revenue Income taxes payable Other current liabilities Total current liabilities Deferred and other tax liabilities, net Long-term debt Other liabilities Total liabilities Stockholders’ equity: Common stock Additional paid-in capital Treasury stock at cost Retained earnings Accumulated other comprehensive income Total stockholders’ equity Total liabilities and stockholders’ equity $ 781 330 2.134 117 177 3.539 3,0% 1,3% 8,2% 0,5% 0,7% 0,0% 13,6% 3.425 9.234 1.720 17.918 2 15.293 (21.892) 13.943 717 8.063 $ 25.981 2016 Percent 1.451 283 1.893 110 110 3.847 6,1% 1,2% 7,9% 0,5% 0,5% 0,0% 16,1% 13,2% 35,5% 6,6% 69,0% 1.888 7.509 64 13.308 0,0% 58,9% -84,3% 53,7% 2,8% 31,0% 2 14.907 (19.205) 14.959 (124) 10.539 100,0% $ $ 23.847 2015 Percent 349 1.736 106 72 2.263 0,0% 2,0% 9,8% 0,6% 0,4% 0,0% 12,7% 7,9% 31,5% 0,3% 55,8% 2.092 6.749 75 11.179 0,0% 62,5% -80,5% 62,7% -0,5% 44,2% 2 14.538 (16.203) 7.713 526 6.576 100,0% $ $ 17.755 2014 Percent 850 107 3.830 108 125 12.511 17.531 1,9% 0,2% 8,5% 0,2% 0,3% 27,7% 38,8% 11,8% 38,0% 0,4% 63,0% 522 6.777 396 25.226 0,0% 81,9% -91,3% 43,4% 3,0% 37,0% 2 13.887 (14.054) 18.900 1.171 19.906 100,0% $ Percent $ 45.132 2013 6 309 9.260 2.799 158 107 12.639 0,0% 0,7% 22,3% 6,7% 0,4% 0,3% 30,5% 2,2% 1,1% 11,3% 1,7% 0,4% 5,6% 22,4% 1,2% 15,0% 0,9% 55,9% 841 4.117 244 17.841 2,0% 9,9% 0,6% 43,0% 7,2% 26,0% 1,8% 57,3% 0,0% 30,8% -31,1% 41,9% 2,6% 44,1% 2 13.031 (9.396) 18.854 1.156 23.647 0,0% 31,4% -22,6% 45,4% 2,8% 57,0% 0,0% 53,1% -62,0% 49,4% 2,1% 42,7% 100,0% 100,0% 100,0% $ Percent $ 41.488 EBAY Condensed Statement of Cash Flows (In millions of dollars) Fiscal Year Ended December 31 Cash from operating activities Cash from investing activities Cash from financing activities 2017 2016 2015 2014 2013 $ 3.146 $ 2.826 $ 4.033 $ 5.677 $ 4.995 (1.296) (2.008) (3.611) (2.673) (6.012) (1.784) (744) (4.554) (1.022) (1.354) Effect of exchange rates 238 Net change in cash Cash, beginning of year Cash, end of year 304 1.816 $ 2.120 (90) (364) (148) (16) (4.496) 1.834 1.832 6.328 4.494 $ 1.816 $ 1.832 $ 6.328 48 (2.323) 6.817 $ 4.494 Ebay Profitability ratios Gross profit margin Net profit margin Retun on equity (ROE) Return on assets (ROA) Formula Gross profit / Net Sales Net income / Net Sales Net income / Average Shareholders' equity Net income / Average total assets Efficiency ratios Receivable turnover Inventory turnover Total asset turnover Net Sales / Average Accounts Receivables, Net Cost of goods sold / Average inventory Sales / Average total assets Ebay Ebay Ebay 2017 Ratio 76,8% -10,6% -10,9% -4,1% 2016 Ratio 77,6% 80,9% 84,9% 34,9% 2015 Ratio 79,4% 20,1% 13,0% 5,5% 14,87 14,83 14,10 0,38 0,43 0,27 N/A? No inventory on B.S. Liquidity ratios Current ratio Ending current assets / Ending current liabilities Quick ratio (acid test) (Ending current assets - Ending inventory) / Ending current liabilities Current cash debt coverage Cash provided by operations / Average current liabilities Solvency ratios Debt to assets Times interest earned Cash debt coverage Ending total liabilities / Ending total assets Earnings before interest and taxes / Interest expense Cash provided by operations / Average total liabilities NOTE: Ebay does not seperately disclose interest expense and interest income but rather nets the two amounts on its income statement. On its cash flow statement, it discloses "cash paid for interest." Please use this number in calculating the "times interest earned" ratio. Cash paid for interest 2017 $ 285 million 2016 $ 220 million 2015 $ 175 million Notes Amazon's 10-K for 2017 https://www.sec.gov/Archives/edgar/data/1018724/000101872418000005/amzn-20171231x10k.htm#sF2423AEEA7FB5EE886EF78CF9 To search for corproate filings, use the following link https://www.sec.gov/edgar/searchedgar/companysearch.html Ebay's 10-K for 2017 https://www.sec.gov/ix?doc=/Archives/edgar/data/1065088/000106508818000009/ebay201710-k.htm To search for corproate filings, use the following link https://www.sec.gov/edgar/searchedgar/companysearch.html AMAZON Consolidated Statement of Operations (In millions of dollars) Fiscal Year Ended December 31 2019 Percent 2018 Percent 2017 Percent $ 160.408 120.114 280.522 57% 43% 100,0% $ 141.915 90.972 232.887 61% 39% 100,0% $ 118.573 59.293 177.866 66,7% 33,3% 100,0% Cost of sales Gross profit 165.536 114.986 59,0% 41,0% 139.156 93.731 59,8% 40,2% 111.934 65.932 Operating expenses: Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net Total operating expenses 40.232 18.878 35.931 5.203 201 100.445 14,3% 6,7% 12,8% 1,9% 0,1% 35,8% 34.027 13.814 28.837 4.336 296 81.310 14,6% 5,9% 12,4% 1,9% 0,1% 34,9% Income from operations 14.541 5,2% 12.421 5,3% Interest income Interest expense Other income (expense), net Total non-operating income (expense) 832 (1.600) 203 (565) Income before income taxes 13.976 Net product sales Net service sales Total net sales Provision for income taxes Equity-method investment activity, net of tax Net income 0,3% -0,6% 0,1% -0,2% 5,0% 440 (1.417) (183) (1.160) 11.261 0,2% -0,6% -0,1% -0,5% 4,8% (2.374) (14) -0,8% 0,0% (1.197) 9 -0,5% 0,0% 11.588 4,13% 10.073 4,33% 2016 94.665 41.322 135.987 70% 30% 100,0% 62,9% 37,1% 88.265 47.722 25.249 10.069 22.620 3.674 214 61.826 14,2% 5,7% 12,7% 2,1% 0,1% 34,8% 4.106 2,3% 202 (848) 346 (300) 3.806 (769) (4) 3.033 $ Percent 0,1% -0,5% 0,2% -0,2% 74% 26% 100,0% 64,9% 35,1% 71.651 35.355 17.619 7.233 16.085 2.432 167 43.536 13,0% 5,3% 11,8% 1,8% 0,1% 32,0% 4.186 3,1% 100 (484) 90 (294) 0,1% -0,4% 0,1% -0,2% 3.892 2,9% -0,4% 0,0% (1.425) (96) -1,0% -0,1% 2.371 1,74% $ $ Percent 79.268 27.738 107.006 2,1% 1,71% 2015 Percent Five-year Average % 60.903 13.549 74.452 82% 18% 100,0% 65,7% 34,3% 100,0% 2013 79% 21% 100,0% 67,0% 33,0% 62.752 26.236 70,5% 29,5% 54.181 20.271 72,8% 27,2% 62,7% 37,3% 13.410 5.254 12.540 1.747 171 33.122 12,5% 4,9% 11,7% 1,6% 0,2% 31,0% 10.766 4.332 9.275 1.552 133 26.058 12,1% 4,9% 10,4% 1,7% 0,1% 29,3% 8.585 3.133 6.565 1.129 114 19.526 11,5% 4,2% 8,8% 1,5% 0,2% 26,2% 13,7% 5,7% 12,3% 1,8% 0,1% 33,7% 2.233 2,1% 178 0,2% 745 1,0% 3,6% 0,0% -0,4% -0,2% -0,6% 39 (210) (118) (289) 0,0% -0,2% -0,1% -0,3% 38 (141) (136) (239) 0,1% -0,2% -0,2% -0,3% 0,1% -0,5% 0,0% -0,3% 1,5% (111) -0,1% 506 0,7% 3,3% (950) (22) -0,9% 0,0% (167) 37 -0,2% 0,0% (161) (71) -0,2% -0,1% -0,7% 0,0% 596 0,56% (241) -0,27% 274 0,37% 2,5% 1.568 $ Percent 70.080 18.908 88.988 50 (459) (256) (665) $ 2014 $ $ $ EBAY Consolidated Statement of Earnings (In millions of dollars) Fiscal Year Ended December 31 Net revenues Cost of net revenues Gross profit 2019 $ Percent 10.800 2.508 8.292 100,0% 23,2% 76,8% Operating expenses: Sales and marketing Product development General and administrative Provision for transaction losses Amortization of acquired intangible assets Total operating expenses 3.194 1.240 1.189 300 48 5.971 Income from operations 2018 2017 Percent 2016 Percent 10.746 2.382 8.364 100,0% 22,2% 77,8% $ 9.567 2.222 7.345 100,0% 23,2% 76,8% $ 8.979 2.007 6.972 100,0% 22,4% 77,6% 29,6% 49,4% 14,3% 2,8% 0,4% 55,3% 3.391 1.285 1.131 286 49 6.142 31,6% 53,9% 13,5% 2,7% 0,5% 57,2% 2.515 1.224 1.031 272 38 5.080 26,3% 12,8% 10,8% 2,8% 0,4% 53,1% 2.368 1.114 900 231 34 4.647 2.321 21,5% 2.222 20,7% 2.265 23,7% Interest and other income, net Income before income taxes (114) 2.207 -1,1% 20,4% 496 2.718 4,6% 25,3% 11 2.276 Provision for income taxes 415 3,8% 190 1,8% (3.288) 1.792 16,6% 2.528 23,5% (1.012) Income (loss) from continuing operations Income (loss) from discontinued operations (net of tax) Net income $ Percent (6) $ 1.786 2 16,54% $ 2.530 $ (1.016) $ Percent 8.592 1.771 6.821 100,0% 20,6% 79,4% 26,4% 12,4% 10,0% 2,6% 0,4% 51,8% 2.267 923 1.122 271 41 4.624 2.325 25,9% 0,1% 23,8% 1.326 3.651 14,8% 40,7% -34,4% 3.634 40,5% $ 7.266 $ $ Percent Five-year Average % 8.257 1.492 6.765 100,0% 18,1% 81,9% 100,0% 22,3% 77,7% 2013 26,4% 10,7% 13,1% 3,2% 0,5% 53,8% 2.442 983 889 262 75 4.651 27,8% 11,2% 10,1% 3,0% 0,9% 52,9% 2.144 915 880 236 136 4.311 26,0% 11,1% 10,7% 2,9% 1,6% 52,2% 28,0% 27,9% 12,3% 2,8% 0,4% 54,2% 2.197 25,6% 2.476 28,2% 2.454 29,7% 23,5% 209 2.406 2,4% 28,0% 39 2.515 0,4% 28,6% 117 2.571 1,4% 31,1% 4,2% 27,6% -5,3% (3.380) -38,5% -6,1% 1,3% 34,59% 26,1% 1.725 $ (504) (865) (222) 80,92% Percent 100,0% 18,9% 81,1% 1.947 (19) -10,62% 2014 8.790 1.663 7.127 (459) 7.285 (4) 23,54% 2015 2.067 911 20,08% $ 46 789 0,52% $ 2.856 AMAZON Consolidated Balance Sheet (In millions of dollars) December 31, Assets Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Fixed assets, net Operating leases Goodwill Other assets Total assets 2019 $ Percent 2018 Percent 2017 Percent 2016 Percent 2015 Percent 2014 Percent 2013 Percent 36.092 18.929 20.497 20.816 96.334 16,0% 8,4% 9,1% 9,2% 42,8% $ 31.750 9.500 17.174 16.677 75.101 19,5% 5,8% 10,6% 10,3% 46,2% $ 20.522 10.464 16.047 13.164 60.197 15,6% 8,0% 12,2% 10,0% 45,8% $ 19.334 6.647 11.461 8.339 45.781 23,2% 8,0% 13,7% 10,0% 54,9% $ 15.890 3.918 10.243 5.654 35.705 24,5% 6,1% 15,8% 8,7% 55,1% $ 14.557 2.859 8.299 5.612 31.327 26,7% 5,2% 15,2% 10,3% 57,5% $ 8.658 3.789 7.411 4.767 24.625 21,6% 9,4% 18,5% 11,9% 61,3% 19,8% 7,2% 12,3% 9,7% 49,0% 72.705 25.141 14.754 16.314 $ 225.248 32,3% 61.797 14.548 11.202 $ 162.648 38,0% 48.866 13.350 8.897 $ 131.310 37,2% 29.114 3.784 4.723 $ 83.402 34,9% 21.838 3.759 3.445 $ 64.747 33,7% 16.967 3.319 2.892 $ 54.505 31,1% 27,3% 35,2% 6,1% 5,3% 100,0% 10.949 2.655 1.930 $ 40.159 6,6% 4,8% 100,0% 7,2% 6,4% 100,0% 2014 Percent 2013 6,6% 7,2% 100,0% 8,9% 6,9% 100,0% 10,2% 6,8% 100,0% 4,5% 5,7% 100,0% 5,8% 5,3% 100,0% Liabilities and Stockholders' Equity 2019 Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term lease liability Long-term debt Other long-term liabilities Total Liabilities Stockholders’ equity: Common Stock Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings (accumulated deficit) Total stockholders’ equity Total liabilities and stockholders’ equity Five-year Average % $ Percent 2018 Percent 2017 Percent 2016 Percent 2015 Percent Percent Five-year Average % 47.183 32.439 8.190 87.812 20,9% 14,4% 3,6% 39,0% $ 38.192 23.663 6.536 68.391 23,5% 14,5% 4,0% 42,0% $ 34.616 18.170 5.097 57.883 26,4% 13,8% 3,9% 44,1% $ 25.309 13.739 4.768 43.816 30,3% 16,5% 5,7% 52,5% $ 20.397 10.384 3.118 33.899 31,5% 16,0% 4,8% 52,4% $ 16.459 9.807 1.823 28.089 30,2% 18,0% 3,3% 51,5% $ 15.133 6.688 1.159 22.980 37,7% 16,7% 2,9% 57,2% 26,5% 15,1% 4,4% 46,0% 39.791 23.414 12.171 163.188 17,7% 10,4% 5,4% 72,4% 9.650 23.495 17.563 119.099 5,9% 14,4% 10,8% 73,2% 24.743 20.975 103.601 0,0% 18,8% 16,0% 78,9% 7.694 12.607 64.117 0,0% 9,2% 15,1% 76,9% 8.227 9.249 51.375 0,0% 12,7% 14,3% 79,3% 8.265 7.410 43.764 0,0% 15,2% 13,6% 80,3% 3.191 4.242 30.413 0,0% 7,9% 10,6% 75,7% 4,7% 13,1% 12,3% 76,2% 0,0% -1,4% 16,3% -0,4% 6,6% 21,1% 5 (1.837) 17.186 (985) 4.916 19.285 0,0% -2,2% 20,6% -1,2% 5,9% 23,1% 5 (1.837) 13.394 (723) 2.545 13.384 0,0% -2,8% 20,7% -1,1% 3,9% 20,7% 5 (1.837) 11.135 (511) 1.949 10.741 0,0% -3,4% 20,4% -0,9% 3,6% 19,7% 5 (1.837) 9.573 (185) 2.190 9.746 0,0% -4,6% 23,8% -0,5% 5,5% 24,3% 0,0% -1,7% 17,8% -0,7% 8,5% 23,8% 100,0% 100,0% 5 (1.837) 33.658 (986) 31.220 62.060 $ 225.248 0,0% -0,8% 14,9% -0,4% 13,9% 27,6% 100,0% 5 (1.837) 26.791 (1.035) 19.625 43.549 $ 162.648 0,0% -1,1% 16,5% -0,6% 12,1% 26,8% 100,0% 5 (1.837) 21.389 (484) 8.636 27.709 $ 131.310 100,0% $ 83.402 100,0% $ 64.759 100,0% $ 54.505 100,0% $ 40.159 EBAY Consolidated Balance Sheet (In millions of dollars) December 31, Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Other current assets Total current assets Long-term investments Property and equipment, net Goodwill Intangible assets, net Operating lease right-of-use assets Deferred tax assets Other assets Total assets 2019 $ Percent 975 1.850 700 1.181 4.706 20,7% 39,3% 14,9% 25,1% 25,9% 1.316 1.510 5.153 67 628 4.377 417 $ 18.174 7,2% 8,3% 28,4% 0,4% 3,5% 24,1% 2,3% 100,0% 2018 $ Percent 2.202 2.713 712 1.499 7.126 30,9% 38,1% 10,0% 21,0% 31,2% 3.778 1.597 5.160 92 4.792 274 $ 22.819 2017 $ Percent 2.120 3.743 695 1.185 7.743 8,2% 14,4% 2,7% 4,6% 29,8% 16,6% 7,0% 22,6% 0,4% 6.331 1.597 4.773 69 21,0% 1,2% 100,0% 5.468 $ 25.981 2016 $ Percent 1.816 5.333 592 1.134 8.875 7,6% 22,4% 2,5% 4,8% 37,2% 24,4% 6,1% 18,4% 0,3% 3.969 1.516 4.501 102 21,0% 100,0% 4.884 $ 23.847 2015 $ Percent 1.832 4.299 619 1.154 7.904 10,3% 24,2% 3,5% 6,5% 44,5% 16,6% 6,4% 18,9% 0,4% 3.391 1.554 4.451 90 20,5% 100,0% 365 $ 17.755 2014 $ Percent 4.105 3.730 600 18.096 26.531 9,1% 8,3% 1,3% 40,1% 58,8% 19,1% 8,8% 25,1% 0,5% 5.736 1.486 4.671 133 2,1% 100,0% 6.575 $ 45.132 2013 $ Percent Five-year Average % 4.494 4.531 899 13.359 23.283 10,8% 10,9% 2,2% 32,2% 56,1% 15,5% 27,7% 6,7% 12,4% 33,7% 12,7% 3,3% 10,3% 0,3% 4.971 2.760 9.267 941 12,0% 6,7% 22,3% 2,3% 16,8% 7,3% 22,7% 0,4% 14,6% 100,0% 266 $ 41.488 0,6% 100,0% 9,4% 100,0% Liabilities and Stockholders' Equity 2019 Current liabilities: Short-term debt Accounts payable Accrued expenses and other current liabilities Deferred revenue Income taxes payable Other current liabilities Total current liabilities Deferred and other tax liabilities, net Operating lease liabilities Long-term debt Other liabilities Total liabilities Stockholders’ equity: Common stock Additional paid-in capital Treasury stock at cost Retained earnings Accumulated other comprehensive income Total stockholders’ equity Total liabilities and stockholders’ equity $ 1.022 270 2.404 158 212 5,6% 1,5% 13,2% 0,9% 1,2% 4.066 2.646 492 6.738 1.362 15.304 2 16.126 (31.396) 17.754 384 2.870 $ 18.174 2018 Percent 1.546 286 2.335 170 117 ######## 1,3% 10,2% 0,7% 0,5% 22,4% 4.454 14,6% 2,7% 37,1% 7,5% 84,2% 2.925 7.685 1.474 16.538 100,0% 88,7% -172,8% 97,7% 2,1% 15,8% 100,0% $ 2 15.716 (26.394) 16.459 498 6.281 $ 22.819 2017 Percent 19,5% 781 330 2.134 117 177 3.539 3,0% 1,3% 8,2% 0,5% 0,7% 0,0% 13,6% 12,8% 0,0% 33,7% 6,5% 72,5% 3.425 9.234 1.720 17.918 2 15.293 (21.892) 13.943 717 8.063 100,0% 68,9% -115,7% 72,1% 2,2% 27,5% 100,0% $ $ 25.981 2016 Percent 1.451 283 1.893 110 110 3.847 6,1% 1,2% 7,9% 0,5% 0,5% 0,0% 16,1% 13,2% 0,0% 35,5% 6,6% 69,0% 1.888 7.509 64 13.308 0,0% 58,9% -84,3% 53,7% 2,8% 31,0% 2 14.907 (19.205) 14.959 (124) 10.539 100,0% $ $ 23.847 2015 Percent 349 1.736 106 72 2.263 0,0% 2,0% 9,8% 0,6% 0,4% 0,0% 12,7% 7,9% 0,0% 31,5% 0,3% 55,8% 2.092 6.749 75 11.179 0,0% 62,5% -80,5% 62,7% -0,5% 44,2% 2 14.538 (16.203) 7.713 526 6.576 100,0% $ $ 17.755 2014 Percent 850 107 3.830 108 125 12.511 17.531 1,9% 0,2% 8,5% 0,2% 0,3% 27,7% 38,8% 11,8% 0,0% 38,0% 0,4% 63,0% 522 6.777 396 25.226 0,0% 81,9% -91,3% 43,4% 3,0% 37,0% 2 13.887 (14.054) 18.900 1.171 19.906 100,0% $ Percent $ 45.132 2013 6 309 9.260 2.799 158 107 12.639 0,0% 0,7% 22,3% 6,7% 0,4% 0,3% 30,5% 30922,9% 1,4% 9,9% 0,6% 0,6% 0,0% 16,9% 1,2% 0,0% 15,0% 0,9% 55,9% 841 4.117 244 17.841 2,0% 0,0% 9,9% 0,6% 43,0% 12,1% 0,5% 35,2% 4,3% 68,9% 0,0% 30,8% -31,1% 41,9% 2,6% 44,1% 2 13.031 (9.396) 18.854 1.156 23.647 0,0% 31,4% -22,6% 45,4% 2,8% 57,0% 40,0% 72,2% -108,9% 65,9% 1,9% 31,1% 100,0% 100,0% 100,0% $ Percent $ 41.488 AMAZON Condensed Statement of Cash Flows (In millions of dollars) Fiscal Year Ended December 31 Cash from operating activities Cash from investing activities Cash from financing activities $ 2017 18.434 $ (27.819) 9.860 Effect of exchange rates 713 Net change in cash Cash, beginning of year Cash, end of year 1.188 19.334 20.522 $ 2016 17.272 $ (9.876) (3.740) (212) $ 3.444 15.890 19.334 2015 12.039 $ (6.450) (3.882) (374) $ 1.333 14.557 15.890 2014 6.848 $ (5.065) 4.426 (310) $ 5.899 8.658 14.557 2013 5.553 (4.276) (617) (86) $ 574 8.658 EBAY Condensed Statement of Cash Flows (In millions of dollars) Fiscal Year Ended December 31 Cash from operating activities Cash from investing activities Cash from financing activities 2017 2016 2015 2014 2013 $ 3.146 $ 2.826 $ 4.033 $ 5.677 $ 4.995 (1.296) (2.008) (3.611) (2.673) (6.012) (1.784) (744) (4.554) (1.022) (1.354) Effect of exchange rates 238 Net change in cash Cash, beginning of year Cash, end of year 304 1.816 $ 2.120 (90) (364) (148) (16) (4.496) 1.834 1.832 6.328 4.494 $ 1.816 $ 1.832 $ 6.328 48 (2.323) 6.817 $ 4.494 AMAZON Profitability ratios Gross profit margin Net profit margin Retun on equity Return on assets Formula Gross profit / Net Sales Net income / Net Sales Net income / Average Shareholders' equity Net income / Average total assets 2019 Ratio 41,0% 4,1% 21,9% 6,0% 2018 Ratio 40,2% 4,3% 28,3% 6,9% 2017 Ratio 37,1% 1,7% 12,9% 2,8% 2016 Ratio 35,1% 1,7% 14,5% 3,2% 2015 Ratio 33,0% 0,6% 4,9% 1,0% Efficiency ratios Receivable turnover Inventory turnover Total asset turnover Net Sales / Average Accounts Receivables, Net Cost of goods sold / Average inventory Sales / Average total assets 14,96 8,79 1,45 15,61 8,38 1,58 16,54 8,14 1,66 19,44 8,13 1,84 19,00 7,73 1,79 Liquidity ratios Current ratio Quick ratio (acid test) Current cash debt coverage Ending current assets / Ending current liabilities (Ending current assets - Ending inventory) / Ending current liabilities Cash provided by operations / Average current liabilities Solvency ratios Debt to assets Times interest earned Cash debt coverage Ending total liabilities / Ending total assets Earnings before interest and taxes / Interest expense Cash provided by operations / Average total liabilities Notes 2015 much lower because smaller NI Ebay Profitability ratios Gross profit margin Net profit margin Retun on equity (ROE) Return on assets (ROA) Formula Gross profit / Net Sales Net income / Net Sales Net income / Average Shareholders' equity Net income / Average total assets Efficiency ratios Receivable turnover Inventory turnover Total asset turnover Net Sales / Average Accounts Receivables, Net Cost of goods sold / Average inventory Sales / Average total assets Liquidity ratios Current ratio Quick ratio (acid test) Current cash debt coverage Ending current assets / Ending current liabilities (Ending current assets - Ending inventory) / Ending current liabilities Cash provided by operations / Average current liabilities Solvency ratios Debt to assets Times interest earned Cash debt coverage Ending total liabilities / Ending total assets Earnings before interest and taxes / Interest expense Cash provided by operations / Average total liabilities Ebay Ebay Ebay Ebay Ebay 2019 Ratio 76,8% 16,5% 39,0% 8,7% 2018 Ratio 77,8% 23,5% 35,3% 10,4% 2017 Ratio 76,8% -10,6% -10,9% -4,1% 2016 Ratio 77,6% 80,9% 84,9% 34,9% 2015 Ratio 79,4% 20,1% 13,0% 5,5% 15,30 15,28 14,87 14,83 14,10 0,53 0,44 0,38 0,43 0,27 N/A? No inventory on B.S. NOTE: Ebay does not seperately disclose interest expense and interest income but rather nets the two amounts on its income statement. On its cash flow statement, it discloses "cash paid for interest." Please use this number in calculating the "times interest earned" ratio. Cash paid for interest 2017 $ 285 million 2016 $ 220 million 2015 $ 175 million Notes 0,9% 1,7% Net Sales A Net Sales E Revenue Size of eBay compare to Amazon $ $ 2017 177.866 $ 9.567 $ 5,4% 2016 135.987 $ 8.979 $ 6,6% 2015 107.006 $ 8.592 $ 8,0% 2014 88.988 $ 8.790 $ 9,9% 2013 74.452 8.257 11,1% Gross Profit A Gross Profit E Gross Profit Size of eBay compare to Amazon $ $ 2017 65.932 $ 7.345 $ 11,1% 2016 47.722 $ 6.972 $ 14,6% 2015 35.355 $ 6.821 $ 19,3% 2014 26.236 $ 7.127 $ 27,2% 2013 20.271 6.765 33,4% Gross Profit Margin A Gross Profit Margin E Gross Profit Margin 2017 37,1% 76,8% 2016 35,1% 77,6% 2015 33,0% 79,4% 2014 29,5% 81,1% 2013 27,2% 81,9% Year 2017 2016 2015 2014 2013 Year 2017 2016 2015 2014 2013 A Net Sales $177.866 $135.987 $107.006 $ 88.988 $ 74.452 Growth 30,8% 27,1% 20,2% 19,5% N/A A Gross Profit $ 65.932 $ 47.722 $ 35.355 $ 26.236 $ 20.271 Growth 38,2% 35,0% 34,8% 29,4% N/A E Revenue $ 9.567 $ 8.979 $ 8.592 $ 8.790 $ 8.257 Growth 6,5% 4,5% -2,3% 6,5% N/A E Gross Profit $ 7.345 $ 6.972 $ 6.821 $ 7.127 $ 6.765 Growth 5,3% 2,2% -4,3% 5,4% N/A
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Explanation & Answer

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Financial Analysis: Receivable Turnover Ratio
Accounts receivable turnover ratio is one of the efficiency ratios that is very important in
financial ratio analysis of a company. This is a ratio that measures the times annually that a
company or a company is capable to collect its accounts receivable. This is how a company is
able to collect the accounts receivable during the year. Thus in other words it measures how
efficiently a company issues credit to its clients and then collect the money in a manner that is
timely. This is an analysis of the receivable turnover ratio for two companies which are Amazon
and eBay. We will use the ratios for the financial years 2015,2016 and 2017. For eBay, the ratios
for the years 2015, 2016 and 2017 is 14.10, 14.83 and 14.87 respectively. This means that the
company collected its accounts receivable 14.10 times in the year 2015 and the ratio was in an
increasing trend in the following two years. An increasing trend means that the ability and
efficiency of the company to collect the receivables is increasing. It means that the company has
a conservative credit policy and also its collection department is more aggressive with each
passing year. The increasing ratio also means that the number of high quality customers is on the
increase.
For Amazon, the ratios for the years 2015, 2016 and 2017 is 19.00, 19.55 and 16.54
respectively. The ratios show that the number of times the company collected receivables in
2015 was 19 while for 2016 it increased to 19.44 but decreased sharply to 16.54 in the year 2017.
This reduction in the ratio shows that the company has a huge prospect to collect its accounts
receivable as they are needlessly tying up Amazon’s working capital. The decrease in the ratio
may be caused by an ineffective credit policy. It may also be caused by having many credit
customers having financial difficulties or having an inadequate function in collections. It may
also indicate that Amazon has a bad debt amount that is excessive especially in the year 2017.

Thus I suggest that Amazon increases its funding on the collection workforce. It is good for
Amazon to do some review on their collection activities to know the reason for the decline in the
receivable ratio. Doing that will ensure they know the root of the problem and correct it for
increasing the efficiency and effectiveness of the company.

Attached. Please let me know if you have any questions or need revisions.

Financial Analysis: Receivable Turnover Ratio
Accounts receivable turnover ratio is one of the efficiency ratios that is very important in
financial ratio analysis of a company. This is a ratio that measures the times annually that a
company or a company is capable to collect its accounts receivable. This is how a company is
able to collect the accounts receivable during the year. Thus in other words it measures how
efficiently a company issues credit to its clients and then collect the money in a manner that is
timely. This is an analysis of the receivable turnover ratio for two companies which are Amazon
and eBay. We will use the ratios for the financial years 2015,2016 and 2017. For eBay, the ratios
for the years 2015, 2016 and 2017 is 14.10, 14.83 and 14.87 respectively. This means that the
company collected its accounts receivable 14.10 times in the year 2015 and the ratio was in an
increasing trend in the following two years. An increasing trend means that the ability and
efficiency of the company to collect the receivables is increasing. It means that the company has
a conservative credit policy and also its collection department is more aggressive with each
passing year. The increasing ratio also means that the number of high quality customers is on the
increase.
For Amazon, the ratios for the years 2015, 2016 and 2017 is 19.00, 19.55 and 16.54
respectively. The ratios show that the number of times the company collected receivables in
2015 was 19 while for 2016 it increased to 19.44 but decreased sharply to 16.54 in the year 2017.
This reduction in the ratio shows that the company has a huge prospect to collect its accounts
receivable as they are needlessly tying up Amazon’s working capital. The decrease in the ratio
may be caused by an ineffective credit policy. It may also be caused by having many credit
customers having financial difficulties or having an inadequate function in collections. It may
also indicate that Amazon has a bad debt amount that is excessive especially in the year 2017.

Thus I suggest that Amazon increases its funding on the collection workforce. It is good for
Amazon to do some review on their collection activities to know the reason for the decline in the
receivable ratio. Doing that will ensure they know the root of the problem and correct it for
increasing the efficiency and effectiveness of the company.
From the above analysis, we can see that eBay’s accounts receivable turnover is lower
when compared to that of Amazon. This means that the number of quality customers that
Amazon are better than those of eBay. It also means that Amazon has a better credit policy
compared to eBay.

Attached. Please let me know if you have any questions or need revisions.

Amazon's 10-K for 2017
https://www.sec.gov/Archives/edgar/data/1018724/000101872418000005/amzn-20171231x10k.h

To search for corproate filings, use the following link
https://www.sec.gov/edgar/searchedgar/companysearch.html

000005/amzn-20171231x10k.htm#sF2423AEEA7FB5EE886EF78CF9324C2CE

AMAZON
Consolidated Statement of Operati...


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