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Ratio Calculations - Amazon

The document provides a detailed financial ratio analysis for Amazon in 2020, including key metrics such as gross margin, EBIT margin, ROA, ROE, and various liquidity ratios. It highlights significant trends such as increased online sales due to the pandemic, which positively impacted profitability and asset efficiency. Additionally, it notes rising operational costs and a higher reliance on debt compared to industry averages.

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kamal.roselyne
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3 views

Ratio Calculations - Amazon

The document provides a detailed financial ratio analysis for Amazon in 2020, including key metrics such as gross margin, EBIT margin, ROA, ROE, and various liquidity ratios. It highlights significant trends such as increased online sales due to the pandemic, which positively impacted profitability and asset efficiency. Additionally, it notes rising operational costs and a higher reliance on debt compared to industry averages.

Uploaded by

kamal.roselyne
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Ratio Calculations Template - Amazon

Enter the amounts in the YELLOW cells only. DO NOT change the information in the grey cells
2020
Gross margin 39.57%
Calculation
Gross profit (Net sales - Cost fo sales) 152,757
Cost of sales 233,307
Sales 386,064

EBIT margin 5.93%


Calculation
EBIT (Operating income) 22,899
Sales 386,064

Return on assets (ROA) 8.38%


Calculation
EBIT (Operating income) 22,899
Average total assets (2020 total assets + 2019 total assets)/2 273,222
2020 total assets 321,195
2019 total assets

Return of equity (ROE) 27.44%


Calculation
Net income 21,331
Preferred dividend -
Average shareholders equity (2020 shareholder equity + 2019 shareholder equity)/2 77,732
2020 shareholder equity 93,404
2019 shareholder equity

Debtor days 23.20


Calculation
Receivables 24,542
Sales 386,064

Inventory days 34.65


Calculation
Average inventory (2020 inventory + 2019 inventory)/2 22,146
2020 Inventory 23,795
2019 Inventory
Cost of sales 233,307

Creditor days 113.48


Calculation
Trade payables 72,539
Cost of sales 233,307

Working capital days 6.00


Calculation
Working capital (current assets - current liabilities) 6,348
Current assets 132,733
Current liabilities 126,385
Sales 386,064

Asset turnover 1.41


Calculation
Sales 386,064
Average total assets (2020 total assets + 2019 total assets)/2 273,222
2020 total assets 321,195
2019 total assets

Current ratio 1.05


Calculation
Current assets 132,733
Current liabilities 126,385

Quick ratio 0.86


Calculation
Current assets 132,733
Current liabilities 126,385
Inventory 23,795

Debt ratio 0.71


Calculation
Total liabilities (Total liabilities and equity - Total equity) 227,791
Total assets 321,195
Total liabilities and equity 321,195
Total equity 93,404

Debt-equity ratio 2.44


Calculation
Total liabilities (Total liabilities and equity - Total equity) 227,791
Total liabilities and equity 321,195
Total equity 93,404

Interest coverage ratio 13.90


Calculation
EBIT (Operating income) 22,899
Total interest expense 1,647

Dividend payout 0%
Calculation
Total dividends -
Net income 21,331

Return on investment (ROI) 17.03%


Calculation
Net profit 21,331
Cost of investment 125,220

Operating cash flow ratio 0.52


Calculation
Cash flow from operations 66,064
Current liabilities 126,385
rmation in the grey cells
2019 (amounts in millions)
40.99% The increase in gross profit is primarily due to higher online transactions in 2020.

114,986
165,536
280,522

5.18% The EBIT margin has fallen due to rising operations and other costs.

14,541
280,522

The ROA is significantly higher than the industry average due to increased online sales.

14,541

225,248

Shareholder returns are significantly higher than the industry standard.

11,588
-

62,060

27.08 Amazon's debtor days are quite constant and lower than the industry average in 2020, indicating tha

20,816
280,522

Stable and above the industry average. More inventory in storage facilities has increased storage ex
20,497
165,536

104.04 Creditor days have increased significantly in 2020, and they are substantially above the industry stan

47,183
165,536

11.09 The pandemic-related surge in online sales in 2020 lead to a considerable drop in working capital da

8,522
96,334
87,812
280,522

Value is near the industry average, signifying that sales are reasonable for the assets implicated.

280,522

225,248

1.10 Current ratio decreased in 2020, indicating potential pressure to repay creditors on schedule.

96,334
87,812

0.86 The divergence from the current ratio confirms the vast volume of goods housed in Amazon's wareh

96,334
87,812
20,497

0.72 The business relies more on debt to finance itself than the industry average.
163,188
225,248
225,248
62,060

2.63 The business relies more on debt to finance itself than the industry average.

163,188
225,248
62,060

9.09 The pandemic's impact on internet sales in 2020 lead to a considerable increase in sales volume.

14,541
1,600

0% rather than returning cash to shareholders, more funds have been reinvested in the business.

-
11,588

13.56% ROI is above the industry average, with a large increase as a result of the pandemic in 2020.

11,588
85,474

0.44 Operating cash flow is above industry average, with an increase due to the pandemic in 2020.

38,514
87,812
e in 2020, indicating that they receive their money faster.

as increased storage expenses in 2020.


above the industry standard. Late payments to vendors may result in interest and penalties due.

op in working capital days.

e assets implicated.

tors on schedule.

used in Amazon's warehouses.


ase in sales volume.

d in the business.

ndemic in 2020.

andemic in 2020.

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