THE BIG.COM
The data in this case come from the financial reports of Amazon.com, Inc.*
|
SELECTED CONSOLIDATED BALANCE SHEET ITEMS |
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|
December 31, |
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|
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
2001 |
2000 |
1999 |
|
|
Total current assets |
$6,157 |
$5,164 |
$3,373 |
$2,929 |
$2,539 |
$1,821 |
$1,616 |
$1,208 |
$1,361 |
$1,012 |
|
Total assets |
8,314 |
6,485 |
4,363 |
3,696 |
3,249 |
2,162 |
1,990 |
1,637 |
2,135 |
2,471 |
|
Total current liabilities |
4,746 |
3,714 |
2,532 |
1,899 |
1,620 |
1,253 |
1,066 |
921 |
975 |
739 |
|
Long term debt and other |
896 |
1,574 |
1,400 |
1,551 |
1,855 |
1,945 |
2,277 |
2,156 |
2,127 |
1,466 |
|
Total liabilities |
5,642 |
5,288 |
3,932 |
3,450 |
3,475 |
3,198 |
3,343 |
3,077 |
3,102 |
2,205 |
|
Stockholders’ (deficit) equity |
2,672 |
1,197 |
431 |
246 |
227 |
1,036 |
1,353 |
1,440 |
967 |
266 |
|
Total liabilities and |
8,314 |
6,485 |
4,363 |
3,696 |
3,249 |
2,162 |
1,990 |
1,637 |
2,135 |
2,471 |
|
Outstanding shares of |
428 |
416 |
414 |
416 |
410 |
403 |
388 |
373 |
357 |
345 |
|
Market price common stock |
51.28 |
92.64 |
39.46 |
47.15 |
44.29 |
52.62 |
18.89 |
10.82 |
15.56 |
76.12 |
|
SELECTED CONSOLIDATED STATEMENT OF OPERATIONS ITEMS |
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|
Year Ended December 31, |
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|
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
2001 |
2000 |
1999 |
1998 |
|
|
Net sales |
$19,166 |
$14,835 |
$10,711 |
$8,490 |
$6,921 |
$5,264 |
$3,933 |
$3,122 |
$2,762 |
$1,640 |
$610 |
|
Gross profit |
4,270 |
3,353 |
2,456 |
2,039 |
1,602 |
1,257 |
993 |
799 |
656 |
291 |
114 |
|
Net income (loss) |
645 |
476 |
190 |
359 |
588 |
35 |
149 |
567 |
1,411 |
720 |
125 |
|
Fully diluted earnings per share |
1.49 |
1.12 |
0.45 |
0.78 |
1.39 |
0.08 |
0.4 |
1.53 |
4.02 |
2.2 |
0.42 |
|
SELECTED CONSOLIDATED STATEMENT OF CASH FLOW ITEMS |
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|
Year Ended December 31, |
|||||||||||
|
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
2001 |
2000 |
1999 |
1998 |
|
|
Net cash provided (used) in operating activities |
$1,697 |
$1,405 |
$702 |
$703 |
$566 |
$393 |
$174 |
$120 |
($130) |
($91) |
$31 |
|
Net cash provided (used) in investing activities |
1,199 |
42 |
333 |
778 |
317 |
236 |
122 |
253 |
164 |
932 |
324 |
|
Net cash provided (used) in financing activities |
198 |
50 |
400 |
193 |
97 |
332 |
107 |
107 |
693 |
1,140 |
254 |
|
Cash and cash equivalents, end |
2,769 |
2,539 |
1,022 |
1,013 |
1,303 |
1,102 |
738 |
540 |
822 |
133 |
72 |
Required
a. Amazon had a deficit in stockholders’ equity from 2000–2004. During this time period, Amazon increased cash and cash equivalents, end of period. Comment on how this was accomplished.
b. Compute the debt ratio for the period 1999–2008. Comment on the results.
c. Comment on the importance of net cash provided by financing activities 1998–2002.
d. Comment on the trend in net cash provided by operating activities 2000–2008.
e. Comment on the trend in net sales vs. the trend in net income (loss).
f. Comment on the market decline between 1999 and 2001.
1. Compute the total stock market price (outstanding shares of common X market price per share) for the period 1999–2008.
2. Compare the total stock market price on f(1) with the stockholders’ equity. Comment.
g. Compute the price/earnings ratio for the period 1999–2008.
h. Does the future look good for Amazon.com? Comment.