Excel Assignment #4 NOTE: We will start working on this assignment in-class.

- Prepare ratio analysis for Amazon's 5 year historical and projected income statements,
cash flows and balance sheets. Complete a valuation model for Amazon based on the
projections provided.

Overview: Your task is complete the 1) Ratio Analysis, 2) Valuation

Ratios and 3) Valuation Model spreadsheets for Amazon.com based on
the provided Income Statements, Cash Flows and Balance Sheets for the
prior 5 years and projected 5 years.

Use the Ratios provided in the slides for Chapter 6 as a guide for
completing the formulas.

Step 1: Complete the Ratio Analysis spreadsheet.

Fill in the green cells by linking the Income Statements, Cash Flows and
Balances Sheets provided. Add the appropriate formulas for the Ratios using
the linked data. Example: Profit Margin % = Net Income/Revenue.

Step 2: Complete the Valuation Ratios spreadsheet.

First, start by completing the "Cost of Capital Calculations" section first by filling
in the green cells. Use my "Notes" provided to find the Risk Free Rate and stock
Beta for Amazon.
Second, complete the "Weighted Average Cost of Capital (WACC) Calculation"
section. Find the most recent stock prices for Amazon.com (AMZN).
Lastly, complete the "Valuation Ratios" section by filling in the green cells by
linking the IS, CF and BS provided. Add the appropriate formulas for the Ratios
using the linked data. Note: Only the current valuation measure is used for
calculating historical and projected valuation multiples.

Step 3: Complete the Valuation Model spreadsheet.

Ensure that Discount Rate flows properly from the Valuation Ratios
spreadsheet. On the Data Table below, enter the Discount Rate and Terminal
Growth Rate to see how Amazon's "Value per Share" changes as the Discount
Rate and Terminal Growth rate change.

Step 4: Review your work and then Submit the final Excel file through
Blackboard.
Company Name: Amazon.com, Inc.
Fiscal Year Ended December 31, 2022
$ in millions (except share data)
Historical Income Statements Projected Income Statements
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue $ 232,887 $ 280,522 $ 386,064 $ 469,822 $ 513,983 $ 555,102 $ 610,612 $ 671,673 $ 738,840 $ 812,724
Cost of Goods Solds (COGS) 173,183 205,768 291,824 347,455 373,130
[Adjustments] - - - - -
Adjusted Cost of Goods Sold $ 173,183 $ 205,768 $ 291,824 $ 347,455 $ 373,130 $ 402,980 $ 443,278 $ 487,606 $ 536,367 $ 590,004
Gross Profit $ 59,704 $ 74,754 $ 94,240 $ 122,367 $ 140,853 $ 152,121 $ 167,333 $ 184,067 $ 202,473 $ 222,721
Operating Expenses (Opex) 47,283 60,213 71,341 97,488 128,605
[Adjustments] - - - - -
Adjusted Operating Expenses $ 47,283 $ 60,213 $ 71,341 $ 97,488 $ 128,605 $ 133,342 $ 140,571 $ 147,911 $ 155,314 $ 162,718
Operating Income (Loss) $ 12,421 $ 14,541 $ 22,899 $ 24,879 $ 12,248 $ 18,779 $ 26,763 $ 36,156 $ 47,160 $ 60,003
Interest (Expense) (1,417) (1,600) (1,647) (1,809) (2,367) (2,556) (2,812) (3,093) (3,403) (3,743)
Interest Income 440 832 555 448 989 1,623 1,786 1,964 2,161 2,377
Other Income (Expense) (174) 189 2,387 14,637 (16,809) (11,102) (12,212) (13,433) (14,777) (16,254)
[Adjustments] - - (1,527) (13,392) 16,002 - - - - -
Income (Loss) Before Income Taxes $ 11,270 $ 13,962 $ 22,667 $ 24,763 $ 10,063 $ 6,744 $ 13,524 $ 21,593 $ 31,141 $ 42,382
Income Tax Provision (Benefit) $ 1,197 $ 2,374 $ 2,588 $ 3,109 $ (1,329) $ 1,416 $ 2,840 $ 4,535 $ 6,540 $ 8,900
Net Income (Loss) $ 10,073 $ 11,588 $ 20,079 $ 21,654 $ 11,392 $ 5,328 $ 10,684 $ 17,059 $ 24,601 $ 33,482
Weighted Average Shares:
Basic 9,740 9,880 10,000 10,117 10,189 10,239 10,289 10,339 10,389 10,439
Diluted 10,000 10,080 10,200 10,296 10,368 10,418 10,468 10,518 10,568 10,618
Earnings Per Share:
Basic $ 1.03 $ 1.17 $ 2.01 $ 2.14 $ 1.12 $ 0.52 $ 1.04 $ 1.65 $ 2.37 $ 3.21
Diluted $ 1.01 $ 1.15 $ 1.97 $ 2.10 $ 1.10 $ 0.51 $ 1.02 $ 1.62 $ 2.33 $ 3.15
Company Name: Amazon.com, Inc.
Fiscal Year Ended December 31, 2022
$ in millions (except share data)
COMMON SIZE FINANCIALS
Historical Income Statements Projected Income Statements
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue Growth 20.5% 37.6% 21.7% 9.4% 8.0% 10.0% 10.0% 10.0% 10.0%
Common Size:
Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Goods Solds (COGS) 74.4% 73.4% 75.6% 74.0% 72.6%
[Adjustments] 0.0% 0.0% 0.0% 0.0% 0.0%
Adjusted Cost of Goods Sold 74.4% 73.4% 75.6% 74.0% 72.6% 72.6% 72.6% 72.6% 72.6% 72.6%
Gross Profit 25.6% 26.6% 24.4% 26.0% 27.4% 27.4% 27.4% 27.4% 27.4% 27.4%
Operating Expenses (Opex) 20.3% 21.5% 18.5% 20.7% 25.0%
[Adjustments] 0.0% 0.0% 0.0% 0.0% 0.0%
Adjusted Operating Expenses 20.3% 21.5% 18.5% 20.7% 25.0% 24.0% 23.0% 22.0% 21.0% 20.0%
Operating Income (Loss) 5.3% 5.2% 5.9% 5.3% 2.4% 3.4% 4.4% 5.4% 6.4% 7.4%
Interest (Expense) -0.6% -0.6% -0.4% -0.4% -0.5% -0.5% -0.5% -0.5% -0.5% -0.5%
Interest Income 0.2% 0.3% 0.1% 0.1% 0.2% 0.3% 0.3% 0.3% 0.3% 0.3%
Other Income (Expense) -0.1% 0.1% 0.6% 3.1% -3.3% -2.0% -2.0% -2.0% -2.0% -2.0%
[Adjustments] 0.0% 0.0% -0.4% -2.9% 3.1% 0.0% 0.0% 0.0% 0.0% 0.0%
Income (Loss) Before Income Taxes 4.8% 5.0% 5.9% 5.3% 2.0% 1.2% 2.2% 3.2% 4.2% 5.2%
Income Tax Provision (Benefit) 0.5% 0.8% 0.7% 0.7% -0.3% 0.3% 0.5% 0.7% 0.9% 1.1%
Net Income (Loss) 4.3% 4.1% 5.2% 4.6% 2.2% 1.0% 1.7% 2.5% 3.3% 4.1%
Company Name: Amazon.com, Inc.
Fiscal Year Ended December 31, 2022
$ in millions (except share data)
Historical Cash Flow Statements Projected Cash Flow Statements
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Cash Flow from Operating Activities:
Net Income (Loss) $ 10,073 $ 11,588 $ 20,079 $ 21,654 $ 11,392 $ 5,328 $ 10,684 $ 17,059 $ 24,601 $ 33,482
Depreciation & Amortization 15,341 21,789 25,251 34,433 41,921 46,921 49,921 52,921 52,921 52,921
Stock Based Compensation 5,418 6,864 9,208 12,757 19,621 16,621 17,621 18,621 19,621 20,621
Non-Cash Interest - - - - - - - - - -
Deferred Income Taxes 441 796 (554) (310) (8,148) - - - - -
Other Non-Cash Adjustments 793 (85) (2,653) (14,306) 16,966 - - - - -
[Non-Cash Adjustments to Income] - - 1,252 11,710 (14,114) - - - - -
Net Working Capital Changes (1,343) (2,438) 13,481 (19,611) (20,886) 3,596 8,259 9,085 9,993 10,993
Net Cash From Operating Activities $ 30,723 $ 38,514 $ 66,064 $ 46,327 $ 46,752 $ 72,465 $ 86,485 $ 97,686 $ 107,137 $ 118,017
Cash Flow from Investing Activities:
Net Purchases of PP&E $ (11,323) $ (12,689) $ (35,044) $ (55,396) $ (58,321) $ (55,321) $ (52,321) $ (49,321) $ (46,321) $ (43,321)
Net Purchases of Investment Securities 1,140 (9,131) (22,242) (773) 29,036 - - - - -
Net Business Acquisitions (2,186) (2,461) (2,325) (1,985) (8,316) (2,000) (2,000) (2,000) (2,000) (2,000)
Other Investing Activities - - - - - - - - - -
Net Cash Used in Investing Activities $ (12,369) $ (24,281) $ (59,611) $ (58,154) $ (37,601) $ (57,321) $ (54,321) $ (51,321) $ (48,321) $ (45,321)
Cash Flow from Financing Activities:
Proceeds from Long-Term Debt $ 1,068 $ 2,273 $ 17,321 $ 26,959 $ 62,719
Paydowns of Long-Term Debt (968) (2,684) (7,730) (9,343) (38,812) (10,000) (10,000) (10,000) (10,000) (10,000)
Net Proceeds from Common Stock - - - - (6,000) (10,000) (10,000) (10,000) (10,000) (10,000)
Net Proceeds from Preferred Stock - - - - -
Dividends Paid - - - - -
Other Financing Activities (7,786) (9,655) (10,695) (11,325) (8,189)
Net Cash From Financing Activities $ (7,686) $ (10,066) $ (1,104) $ 6,291 $ 9,718 $ (20,000) $ (20,000) $ (20,000) $ (20,000) $ (20,000)
Net Increase in Cash $ 10,668 $ 4,167 $ 5,349 $ (5,536) $ 18,869 $ (4,856) $ 12,164 $ 26,365 $ 38,816 $ 52,696
Effects of Foreign Exchange (351) 70 618 (364) (1,093)
Cash & Equivalents at Beginning of Year 21,856 32,173 36,410 42,377 36,477 $ 54,253 $ 49,397 $ 61,561 $ 87,926 $ 126,742
Cash & Equivalents at End of Year $ 32,173 $ 36,410 $ 42,377 $ 36,477 $ 54,253 $ 49,397 $ 61,561 $ 87,926 $ 126,742 $ 179,437
Company Name: Amazon.com, Inc.
As of the Year Ended December 31, 2022
$ in millions (except share data)
Historical Balance Sheets Projected Balance Sheets
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Assets:
Current Assets:
Cash $ 32,173 $ 36,410 $ 42,377 $ 36,477 $ 54,253 $ 49,397 $ 61,561 $ 87,926 $ 126,742 $ 179,437
Short-Term Investments 9,500 18,929 42,274 59,829 16,138 16,138 16,138 16,138 16,138 16,138
Accounts Receivable, net 16,677 20,816 24,542 32,891 42,360 42,973 47,881 53,341 59,414 66,168
Inventory 17,174 20,497 23,795 32,640 34,405 36,047 40,263 44,960 50,195 56,028
Other Current Assets (423) (318) (255) (257) (365) (394) (434) (477) (525) (577)
Total Current Assets $ 75,101 $ 96,334 $ 132,733 $ 161,580 $ 146,791 $ 144,162 $ 165,410 $ 201,888 $ 251,964 $ 317,194
Property, Plant & Equipment, net 61,797 72,705 113,114 160,281 186,715 195,115 197,515 193,915 187,315 177,715
Intangible Assets & Goodwill, net 14,548 14,754 15,017 15,371 20,288 22,288 24,288 26,288 28,288 30,288
Other Long-Term Assets 11,202 41,455 60,331 83,317 108,881 108,881 108,881 108,881 108,881 108,881
Total Assets $ 162,648 $ 225,248 $ 321,195 $ 420,549 $ 462,675 $ 470,446 $ 496,094 $ 530,972 $ 576,448 $ 634,078
Liabilities & Stockholders' Equity:
Current Liabilities:
Accounts Payable $ 38,192 $ 47,183 $ 72,539 $ 78,664 $ 79,600 $ 83,192 $ 92,122 $ 102,006 $ 112,946 $ 125,053
Accrued Expenses 23,663 32,439 44,138 51,775 62,566 64,796 71,886 79,746 88,460 98,118
Current Portion of LT Debt - - - - - 10,000 10,000 10,000 10,000 -
Other Current Liabilities 6,536 8,190 9,708 11,827 13,227 13,227 14,550 16,005 17,605 19,366
Total Current Liabilities $ 68,391 $ 87,812 $ 126,385 $ 142,266 $ 155,393 $ 171,215 $ 188,558 $ 207,757 $ 229,011 $ 242,537
Long-Term Debt 23,495 23,414 31,816 48,744 67,150 47,150 37,150 27,150 17,150 17,150
Deferred-Tax Liabilites - - - - - - - - - -
Other Long-Term Liabiilities 27,213 51,962 69,590 91,294 94,089 94,089 94,089 94,089 94,089 94,089
Total Liabilities $ 119,099 $ 163,188 $ 227,791 $ 282,304 $ 316,632 $ 312,454 $ 319,797 $ 328,996 $ 340,250 $ 353,776
Minority Interest - - - - -
Common Stock & Paid In Capital 24,959 31,826 41,033 53,706 67,337 57,337 47,337 37,337 27,337 17,337
Preferred Stock - - - - - - - - - -
Retained Earnings & AOCI 18,590 30,234 52,371 84,539 78,706 100,655 128,960 164,639 208,862 262,965
Total Stockholders' Equity $ 43,549 $ 62,060 $ 93,404 $ 138,245 $ 146,043 $ 157,992 $ 176,297 $ 201,976 $ 236,199 $ 280,302
Total Liabilities & Stockholders' Equity $ 162,648 $ 225,248 $ 321,195 $ 420,549 $ 462,675 $ 470,446 $ 496,094 $ 530,972 $ 576,448 $ 634,078
- - - - -
Company Name: Amazon.com, Inc.
As of the Year Ended December 31, 2022
$ in millions (except share data)
COMMON-SIZE FINANCIALS
Historical Balance Sheets Projected Balance Sheets
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Assets:
Current Assets:
Cash 13.8% 13.0% 11.0% 7.8% 10.6% 8.9% 10.1% 13.1% 17.2% 22.1%
Short-Term Investments 4.1% 6.7% 10.9% 12.7% 3.1% 2.9% 2.6% 2.4% 2.2% 2.0%
Accounts Receivable, net 7.2% 7.4% 6.4% 7.0% 8.2% 7.7% 7.8% 7.9% 8.0% 8.1%
Inventory 7.4% 7.3% 6.2% 6.9% 6.7% 6.5% 6.6% 6.7% 6.8% 6.9%
Other Current Assets -0.2% -0.1% -0.1% -0.1% -0.1% -0.1% -0.1% -0.1% -0.1% -0.1%
Total Current Assets 32.2% 34.3% 34.4% 34.4% 28.6% 26.0% 27.1% 30.1% 34.1% 39.0%
Property, Plant & Equipment, net 26.5% 25.9% 29.3% 34.1% 36.3% 35.1% 32.3% 28.9% 25.4% 21.9%
Intangible Assets & Goodwill, net 6.2% 5.3% 3.9% 3.3% 3.9% 4.0% 4.0% 3.9% 3.8% 3.7%
Other Long-Term Assets 4.8% 14.8% 15.6% 17.7% 21.2% 19.6% 17.8% 16.2% 14.7% 13.4%
Total Assets 69.8% 80.3% 83.2% 89.5% 90.0% 84.7% 81.2% 79.1% 78.0% 78.0%
Liabilities & Stockholders' Equity:
Current Liabilities:
Accounts Payable 16.4% 16.8% 18.8% 16.7% 15.5% 15.0% 15.1% 15.2% 15.3% 15.4%
Accrued Expenses 10.2% 11.6% 11.4% 11.0% 12.2% 11.7% 11.8% 11.9% 12.0% 12.1%
Current Portion of LT Debt 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other Current Liabilities 2.8% 2.9% 2.5% 2.5% 2.6% 2.4% 2.4% 2.4% 2.4% 2.4%
Total Current Liabilities 29.4% 31.3% 32.7% 30.3% 30.2% 30.8% 30.9% 30.9% 31.0% 29.8%
Long-Term Debt 10.1% 8.3% 8.2% 10.4% 13.1% 8.5% 6.1% 4.0% 2.3% 2.1%
Deferred-Tax Liabilites 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other Long-Term Liabiilities 11.7% 18.5% 18.0% 19.4% 18.3% 16.9% 15.4% 14.0% 12.7% 11.6%
Total Liabilities 51.1% 58.2% 59.0% 60.1% 61.6% 56.3% 52.4% 49.0% 46.1% 43.5%
Minority Interest 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Common Stock & Paid In Capital 10.7% 11.3% 10.6% 11.4% 13.1% 10.3% 7.8% 5.6% 3.7% 2.1%
Preferred Stock 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Retained Earnings & AOCI 8.0% 10.8% 13.6% 18.0% 15.3% 18.1% 21.1% 24.5% 28.3% 32.4%
Total Stockholders' Equity 18.7% 22.1% 24.2% 29.4% 28.4% 28.5% 28.9% 30.1% 32.0% 34.5%
Total Liabilities & Stockholders' Equity 69.8% 80.3% 83.2% 89.5% 90.0% 84.7% 81.2% 79.1% 78.0% 78.0%
Company Name: Amazon.com, Inc.
Fiscal Year Ended December 31, 2022
$ in millions (except share data)
Historical Income Statements Projected Income Statements
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Growth Rates
Revenue 20.5% 37.6% 21.7% 9.4% 8.0% 10.0% 10.0% 10.0% 10.0%
Gross Profit 25.2% 26.1% 29.8% 15.1% 8.0% 10.0% 10.0% 10.0% 10.0%
Operating Profit (EBIT) 17.1% 57.5% 8.6% -50.8% 53.3% 42.5% 35.1% 30.4% 27.2%
EBITDA 30.9% 32.5% 23.2% -8.7% 21.3% 16.7% 16.2% 12.4% 12.8%
Net Income (Loss) 15.0% 73.3% 7.8% -47.4% -53.2% 100.5% 59.7% 44.2% 36.1%

Profitability Ratios
Gross Margin 25.6% 26.6% 24.4% 26.0% 27.4% 27.4% 27.4% 27.4% 27.4% 27.4%
Gross Profit $ 59,704 $ 74,754 $ 94,240 $ 122,367 $ 140,853 $ 152,121 $ 167,333 $ 184,067 $ 202,473 $ 222,721
Revenue $ 232,887 $ 280,522 $ 386,064 $ 469,822 $ 513,983 $ 555,102 $ 610,612 $ 671,673 $ 738,840 $ 812,724

Operating (EBIT) Margin 5.3% 5.2% 5.9% 5.3% 2.4% 3.4% 4.4% 5.4% 6.4% 7.4%
Operating Income (EBIT) $ 12,421 $ 14,541 $ 22,899 $ 24,879 $ 12,248 $ 18,779 $ 26,763 $ 36,156 $ 47,160 $ 60,003
Revenue $ 232,887 $ 280,522 $ 386,064 $ 469,822 $ 513,983 $ 555,102 $ 610,612 $ 671,673 $ 738,840 $ 812,724

EBITDA Margin 11.9% 13.0% 12.5% 12.6% 10.5% 11.8% 12.6% 13.3% 13.5% 13.9%
Operating Income (EBIT) $ 12,421 $ 14,541 $ 22,899 $ 24,879 $ 12,248 $ 18,779 $ 26,763 $ 36,156 $ 47,160 $ 60,003
Depreciation & Amortization $ 15,341.00 $ 21,789.00 $ 25,251.00 $ 34,433.00 $ 41,921.00 $ 46,921.00 $ 49,921.00 $ 52,921.00 $ 52,921.00 $ 52,921.00
EBITDA $ 27,762.00 $ 36,330.00 $ 48,150.00 $ 59,312.00 $ 54,169.00 $ 65,699.86 $ 76,683.86 $ 89,076.88 $ 100,080.87 $ 112,924.10
Revenue $ 232,887 $ 280,522 $ 386,064 $ 469,822 $ 513,983 $ 555,102 $ 610,612 $ 671,673 $ 738,840 $ 812,724

Net Profit Margin 4.3% 4.1% 5.2% 4.6% 2.2% 1.0% 1.7% 2.5% 3.3% 4.1%
Net Income $ 10,073 $ 11,588 $ 20,079 $ 21,654 $ 11,392 $ 5,328 $ 10,684 $ 17,059 $ 24,601 $ 33,482
Revenue $ 232,887 $ 280,522 $ 386,064 $ 469,822 $ 513,983 $ 555,102 $ 610,612 $ 671,673 $ 738,840 $ 812,724

Return on Assets 6.2% 5.1% 6.3% 5.1% 2.5% 1.1% 2.2% 3.2% 4.3% 5.3%
Net Income $ 10,073 $ 11,588 $ 20,079 $ 21,654 $ 11,392 $ 5,328 $ 10,684 $ 17,059 $ 24,601 $ 33,482
Total Assets $ 162,648 $ 225,248 $ 321,195 $ 420,549 $ 462,675 $ 470,446 $ 496,094 $ 530,972 $ 576,448 $ 634,078

Return on Equity 23.1% 18.7% 21.5% 15.7% 7.8% 3.4% 6.1% 8.4% 10.4% 11.9%
Net Income $ 10,073 $ 11,588 $ 20,079 $ 21,654 $ 11,392 $ 5,328 $ 10,684 $ 17,059 $ 24,601 $ 33,482
Total Equity $ 43,549 $ 62,060 $ 93,404 $ 138,245 $ 146,043 $ 157,992 $ 176,297 $ 201,976 $ 236,199 $ 280,302

DuPont Analysis (ROE Breakdown):

Net Profit Margin 4.3% 4.1% 5.2% 4.6% 2.2% 1.0% 1.7% 2.5% 3.3% 4.1%
Asset Turnover 1.4x 1.2x 1.2x 1.1x 1.1x 1.2x 1.2x 1.3x 1.3x 1.3x
Equity Multiplier (Leverage) 3.7x 3.6x 3.4x 3.0x 3.2x 3.0x 2.8x 2.6x 2.4x 2.3x
Return on Equity 23.1% 18.7% 21.5% 15.7% 7.8% 3.4% 6.1% 8.4% 10.4% 11.9%

Financial Leverage Ratios

Company Name: Amazon.com, Inc.
Fiscal Year Ended December 31, 2022
$ in millions (except share data)
Historical Income Statements Projected Income Statements
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Long-Term Debt Ratio 35.0% 27.4% 25.4% 26.1% 31.5% 23.0% 17.4% 11.8% 6.8% 5.8%
Long-Term Debt $ 23,495.00 $ 23,414.00 $ 31,816.00 $ 48,744.00 $ 67,150.00 $ 47,150.00 $ 37,150.00 $ 27,150.00 $ 17,150.00 $ 17,150.00
Total Equity $ 43,549 $ 62,060 $ 93,404 $ 138,245 $ 146,043 $ 157,992 $ 176,297 $ 201,976 $ 236,199 $ 280,302
Total Capital $ 67,044.00 $ 85,474.00 $ 125,220.00 $ 186,989.00 $ 213,193.00 $ 205,141.51 $ 213,446.61 $ 229,126.33 $ 253,348.76 $ 297,451.86

Equity Multiplier 3.73 3.63 3.44 3.04 3.17 2.98 2.81 2.63 2.44 2.26
Total Assets $ 162,648 $ 225,248 $ 321,195 $ 420,549 $ 462,675 $ 470,446 $ 496,094 $ 530,972 $ 576,448 $ 634,078
Total Equity $ 43,549 $ 62,060 $ 93,404 $ 138,245 $ 146,043 $ 157,992 $ 176,297 $ 201,976 $ 236,199 $ 280,302

Times Interest Earned 8.77 9.09 13.90 13.75 5.17 7.35 9.52 11.69 13.86 16.03
Operating Income (EBIT) $ 12,421 $ 14,541 $ 22,899 $ 24,879 $ 12,248 $ 18,779 $ 26,763 $ 36,156 $ 47,160 $ 60,003
Interest Expense (1,417) (1,600) (1,647) (1,809) (2,367) (2,556) (2,812) (3,093) (3,403) (3,743)
Company Name: Amazon.com, Inc.
Fiscal Year Ended December 31, 2022
$ in millions (except share data)
Historical Income Statements Projected Income Statements
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Turnover Ratios
Asset Turnover 1.4x 1.2x 1.2x 1.1x 1.1x 1.2x 1.2x 1.3x 1.3x 1.3x
Revenue $ 232,887 $ 280,522 $ 386,064 $ 469,822 $ 513,983 $ 555,102 $ 610,612 $ 671,673 $ 738,840 $ 812,724
Total Assets $ 162,648 $ 225,248 $ 321,195 $ 420,549 $ 462,675 $ 470,446 $ 496,094 $ 530,972 $ 576,448 $ 634,078

Receivables Turnover 14.0x 13.5x 15.7x 14.3x 12.1x 12.9x 12.8x 12.6x 12.4x 12.3x
Revenue $ 232,887 $ 280,522 $ 386,064 $ 469,822 $ 513,983 $ 555,102 $ 610,612 $ 671,673 $ 738,840 $ 812,724
Accounts Receivable, net 16,677 20,816 24,542 32,891 42,360 42,973 47,881 53,341 59,414 66,168
Days Sales Outstanding 26.1 days 27.1 days 23.2 days 25.6 days 30.1 days 28.3 days 28.6 days 29.0 days 29.4 days 29.7 days

Inventory Turnover 10.08 10.04 12.26 10.65 10.85 11.18 11.01 10.85 10.69 10.53
Cost of Goods Sold (Adjusted) $ 173,183 $ 205,768 $ 291,824 $ 347,455 $ 373,130 $ 402,980 $ 443,278 $ 487,606 $ 536,367 $ 590,004
Inventory 17,174 20,497 23,795 32,640 34,405 36,047 40,263 44,960 50,195 56,028
Days Inventory Outstanding 36.2 days 36.4 days 29.8 days 34.3 days 33.7 days 32.6 days 33.2 days 33.7 days 34.2 days 34.7 days

Payables Turnover 4.5x 4.4x 4.0x 4.4x 4.7x 4.8x 4.8x 4.8x 4.7x 4.7x
Cost of Goods Sold (Adjusted) $ 173,183 $ 205,768 $ 291,824 $ 347,455 $ 373,130 $ 402,980 $ 443,278 $ 487,606 $ 536,367 $ 590,004
Accounts Payable $ 38,192 $ 47,183 $ 72,539 $ 78,664 $ 79,600 $ 83,192 $ 92,122 $ 102,006 $ 112,946 $ 125,053
Days Payables Outstanding 80.5 days 83.7 days 90.7 days 82.6 days 77.9 days 75.4 days 75.9 days 76.4 days 76.9 days 77.4 days

Cash Conversion Cycle 142.8 days 147.1 days 143.7 days 142.5 days 141.6 days 136.3 days 137.6 days 139.0 days 140.4 days 141.7 days

Liquidity Ratios
Current Ratio 1.1x 1.1x 1.1x 1.1x 0.9x 0.8x 0.9x 1.0x 1.1x 1.3x
Current Assets $ 75,101.00 $ 96,334.00 $ 132,733.00 $ 161,580.00 $ 146,791.00 $ 144,161.77 $ 165,409.62 $ 201,888.49 $ 251,964.32 $ 317,193.92
Current Liabilities $ 68,391.00 $ 87,812.00 $ 126,385.00 $ 142,266.00 $ 155,393.00 $ 171,215.26 $ 188,558.01 $ 207,757.16 $ 229,010.56 $ 242,537.06

Net Working Capital $ 6,710.00 $ 8,522.00 $ 6,348.00 $ 19,314.00 $ (8,602.00) $ (27,053.49) $ (23,148.39) $ (5,868.67) $ 22,953.76 $ 74,656.86
Current Assets $ 75,101.00 $ 96,334.00 $ 132,733.00 $ 161,580.00 $ 146,791.00 $ 144,161.77 $ 165,409.62 $ 201,888.49 $ 251,964.32 $ 317,193.92
Current Liabilities $ 68,391.00 $ 87,812.00 $ 126,385.00 $ 142,266.00 $ 155,393.00 $ 171,215.26 $ 188,558.01 $ 207,757.16 $ 229,010.56 $ 242,537.06

Change in Net Working Capital $ 1,812.00 $ (2,174.00) $ 12,966.00 $ (27,916.00) $ (18,451.49) $ 3,905.10 $ 17,279.72 $ 28,822.43 $ 51,703.10
Beginning Net Working Capital $ 6,710.00 $ 8,522.00 $ 6,348.00 $ 19,314.00 $ (8,602.00) $ (27,053.49) $ (23,148.39) $ (5,868.67) $ 22,953.76
Ending Net Working Capital $ 8,522.00 $ 6,348.00 $ 19,314.00 $ (8,602.00) $ (27,053.49) $ (23,148.39) $ (5,868.67) $ 22,953.76 $ 74,656.86

Net Working Capital as % of Revenue 2.9% 3.0% 1.6% 4.1% -1.7% -4.9% -3.8% -0.9% 3.1% 9.2%
Net Working Capital $ 6,710.00 $ 8,522.00 $ 6,348.00 $ 19,314.00 $ (8,602.00) $ (27,053.49) $ (23,148.39) $ (5,868.67) $ 22,953.76 $ 74,656.86
Revenue $ 232,887.00 $ 280,522.00 $ 386,064.00 $ 469,822.00 $ 513,983.00 $ 555,101.64 $ 610,611.80 $ 671,672.98 $ 738,840.28 $ 812,724.31

Capital Expenditures as % of Revenue

Net Capital Expenditures
Company Name: Amazon.com, Inc.
Fiscal Year Ended December 31, 2022
$ in millions (except share data)
Historical Income Statements Projected Income Statements
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue $ 232,887.00 $ 280,522.00 $ 386,064.00 $ 469,822.00 $ 513,983.00 $ 555,101.64 $ 610,611.80 $ 671,672.98 $ 738,840.28 $ 812,724.31
Company Name: Amazon.com, Inc.
Fiscal Year Ended December 31, 2022
$ in millions (except share data)
Historical Projected Income Statements
2022 2023 2024 2025 2026 2027
VALUATION RATIOS
Price to Earnings (P/E) 94.6x 202.3x 100.9x 63.2x 43.8x 32.2x
Market Value of Equity (Market Cap) $ 1,077,753.6
Net Income $ 11,391.8 $ 5,327.5 $ 10,684.1 $ 17,058.7 $ 24,601.4 $ 33,482.1

Price to Sales (P/S) 2.1x 1.9x 1.8x 1.6x 1.5x 1.3x

Market Value of Equity (Market Cap) $ 1,077,753.6
Revenue $ 513,983.0 $ 555,101.6 $ 610,611.8 $ 671,673.0 $ 738,840.3 $ 812,724.3

Price to FCFF (P/FCF) 55.6x 29.4x 21.1x 16.9x 13.8x

Market Value of Equity (Market Cap) $ 1,077,753.6
Unlevered Free Cash Flow $ 19,394.1 $ 36,638.5 $ 51,086.5 $ 63,809.9 $ 77,989.3

EV/EBITDA 19.8x 16.4x 14.0x 12.1x 10.7x 9.5x

Total Capital $ 1,144,904
Less: Cash & ST Investments (70,391)
Enterprise Value $ 1,074,513
EBITDA $ 54,169.0 $ 65,699.9 $ 76,683.9 $ 89,076.9 $ 100,080.9 $ 112,924.1

EV/EBIT 87.7x 57.2x 40.1x 29.7x 22.8x 17.9x

Total Capital $ 1,144,904
Less: Cash & ST Investments (70,391)
Enterprise Value $ 1,074,513
EBIT $ 12,248.0 $ 18,778.9 $ 26,762.9 $ 36,155.9 $ 47,159.9 $ 60,003.1

WEIGHTED AVERAGE COST OF CAPITAL (WACC) CALCULATION

Cost of
Values Weighting Capital WACC
Current Market Value of Equity (Market Cap):
Fully Diluted Shares Outstanding - Most Recent Period 10,368.0
Most Recent Stock Price $ 103.95
Market Value of Equity (Market Cap) $ 1,077,753.6 94.1% 12.15% 11.4%
Long-Term Debt Outstanding:
Current Portion of Long-Term Debt -
Long-Term Debt 67,150.0
Long-Term Debt Outstanding $ 67,150.0 5.9% 3.96% 0.2%
Total Capital $ 1,144,903.6 100.0% 11.7%

COST OF CAPITAL CALCULATIONS

Company Name: Amazon.com, Inc.
Fiscal Year Ended December 31, 2022
$ in millions (except share data)
Projected Income Statements
2023 2024 2025 2026 2027
ENTERPRISE VALUE CALCULATION
Operating Cash Flow $ 72,465.5 $ 86,485.0 $ 97,685.5 $ 107,136.7 $ 118,016.7
Add: Interest Expense Tax Rate 2,556.4 2,812.0 3,093.2 3,402.5 3,742.8
Less: Tax Effect of Interest Expense 12.0% (306.8) (337.4) (371.2) (408.3) (449.1)
Less: Capital Expenditures (55,321.0) (52,321.0) (49,321.0) (46,321.0) (43,321.0)
Unlevered Free Cash Flow (FCFF) $ 19,394 $ 36,639 $ 51,087 $ 63,810 $ 77,989
Discount Periods (mid-year convention) 0.5 1.5 2.5 3.5 4.5
Discount Rate and Factor 11.7% 0.95 0.85 0.76 0.68 0.61
Discounted Unlevered Free Cash Flows (FCFF) $ 178,991 $ 18,353 $ 31,048 $ 38,768 $ 43,363 $ 47,460

Terminal Value:
Terminal Unlevered Free Cash Flow $ 83,449
Terminal Growth Rate 7.0%
Terminal Value Discounted & Undiscounted $ 1,087,494 $ 1,787,043
Enterprise Value at Measurement Date $ 1,266,485

EQUITY VALUE CALCULATION

Net Debt Outstanding at Measurement Date:
Current Portion of Long-Term Debt $ -
Long-Term Debt 67,150
Cash & Cash Equivalents (54,253)
Short-Term Investments (16,138)
Net Debt Outstanding at Measurement Date: $ (3,241)

Net Equity Value at Measurement Date $ 1,269,726

Fully Diluted Common Shares Outstanding 10,368.0
Value per Common Share $ 122.47

Discount Rate
$ 122.47 9.7% 10.7% 11.7% 12.7% 13.7%
6.0%
Terminal 6.5%
Growth Rate 7.0%
7.5%
8.0%