AMAZON.COM, INC.

Income Statement Data

All numbers in $ millions except EPS

Fiscal Year (December, 31)

2014

2013

2012

2011

2010

2009

2008

Sales

88988

74452

61093

48077

34204

24509

19166

Cost of Goods Sold

59152

51681

44271

36288

26009

18594

14585

Selling, General and Administrative Expense

25925

19412

14287

9773

6131

4300

3452

Operating Income Before Depreciation

3911

3359

2535

2016

2064

1615

1129

Depreciation

3781

2668

1863

1149

657

432

340

Operating Income After Depreciation

130

691

672

867

1407

1183

789

Interest Expense - Total

210

141

92

65

39

34

71

Nonoperating Income (Expense)

6

-115

-191

120

136

57

121

Other Income (Expense)

0

0

0

-51

53

Pretax Income

-74

435

389

922

1504

1155

892

Income Taxes - Total

167

161

428

291

352

253

247

Net Income

-241

274

-39

631

1152

902

645

Earnings Per Share (Diluted)

-0.52

0.59

-0.09

1.37

2.53

2.04

1.49

Earnings Per Share (Basic)

-0.52

0.6

-0.09

1.39

2.58

2.08

1.52

Supplemental Information

All numbers in $ millions except stock prices

Total Assets

54505

40159

32555

25278

18797

13813

8314

Capital Expenditures

4893

3444

3785

1811

979

373

333

Stock price AMZN

310.35

398.79

250.87

173.1

180

134.52

51.28

S&P 500

2058.9

1848.36

1426.19

1257.6

1257.64

1115.1

903.25

P/E

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Tasks:

1. Copy the above data into a new worksheet. Make the data presentable.

--adjust font to times new roman 12

--bold co. name and increase font, center across selection

--change number format

--add borders

--try format painter

--calculate P/E when it makes sense (IF function)

2. Perform simple profitability and growth analysis (new worksheet)

--transfer sales, operating profits, net income, capital expenditure, and total assets into a new worksheet

(select non-adjacent ranges using mouse and CTRL and copy-paste)

--calculate net profit margin and operating profit margins

(practice anchoring/dollarizing cells in a formula before copying and pasting -- use F4)

--are the margines improving or deteriorating over time?

--create sparkline graphs for accounting data and for margins

--calculate annual growth rates for sales, assets, and capital expenditues

--calculate arithmetic and geometric averages of the growth rates using

simple formulas

array formulas

--highlight number inputs and change font color of the inputs to blue (F5 go to special constants numbers)

--create column graphs and sparklines

3. compare AMZN stock performance to S&P 500 on a line graph or a scatter (new worksheet)

--calculate geometric average stock return

--calculate arithmetic average stock return

--how does Amazon stock return compare to S&P 500?

create graph that shows how would $1000 invested in either S&P 500 or AMZN grow over time

Do a simple profitability and growth analysis of a company of your choice as follows.

Obtain financials for your chosen company from Standard & Poors NetAdvantage database available through VCU library https://apps.library.vcu.edu/dblist/dbatoz?AtoZ=S. Under Companies search for the information for your chosen company. (If you get no results for your company, you may want to search by its ticker rather than name.) Once you retrieve the information for your chosen company, click on Financials (Under Vital Statistics in the menu on the left side of the screen). Find the Income Statement information and the Other Financial Data and retrieve annual accounting data on total revenue, operating income (EBITDA is reported), net income, total assets, and capital expenditures for the last six years. Note that if you choose a company that went recently public, you may see data for less than six years. If that is the case, select another, more mature company.

Enter the data into a worksheet and format the data such that they are easy to read. The table can look similar to this one:

Fiscal year 2014

2013 2012 2011 2010 2009

Revenue 213,324158,667

Operating Income

Net Income

Total Assets

Capital Expenditure

The table should also have an appropriate title(s) and units (e.g., $ millions). Complete the following tasks:

Calculate the operating margin and the net profit margin for each year. How do these margins compare to the Amazons margins we calculated in class? Is your company more or less profitable than Amazon?

Create sparkline charts for all accounting data and for operating and net profit margins. Make sure that the sparklines show the trendyou want more recent data on the right of the chart and most oldest data on the left of the chart. What trends do you see? Are the revenues growing? Assets? Are the margins improving or deteriorating over time?

Calculate annual growth rates for revenue, total assets, and capital expenditure.

Calculate the arithmetic and the geometric average annual growth rates for revenue, total assets, and capital expenditure using array formulas as explained in class. Verify your results by calculating both averages using at least one other method than array formulas.

Which average, geometric or arithmetic, is more appropriate to use when the question is What was the actual historical average compound growth?

Which data seriesrevenues, assets, or capital expenditure --grows the fastest? Do you see any interesting trends? How do the growth rates compare to the growth rates that we calculated in class for Amazon? Is your company growing faster or slower than Amazon?

Create a column chart of total revenue and total assets. Make sure that the years appear below the x-axis and that they are listed from the earliest year (e.g., 2009) on the left to the latest year (e.g., 2014) on the right. Also make sure that your chart contains a title, a legend, units (e.g., $ millions), and that it is self-explanatory.

Create a scatter plot of operating income, net income, and capital expenditure. Make sure that the years appear below the x-axis and that they are listed from the earliest year (e.g., 2009) on the left to the latest year (e.g., 2014) on the right. Also make sure that your chart contains a title, a legend, units (e.g., $ millions), and that it is self-explanatory.

Find the latest stock price, EPS, and P/E ratio for your company and for Amazon as reported on yahoo! Finance (finance.yahoo.com) and list it in your worksheet. What is EPS? What is P/E? How are they calculated? How do the P/Es of your company and of Amazon compare? Which stock is cheaper? Can you explain the difference?