Directions: Ratio Calculation On each data tab, use formulas to calculate the following financial indicators for each year of data:

o Current ratio

o Debt/equity ratio

o Free cash flow

o Earnings per share

o Price/earnings ratio

o Return on equity

o Net profit margin

o Describe how and why each of the ratios has changed over the three-year period. For example, did the current ratio increase or decrease? Why? Describe how three of the ratios you calculated for your company compare to the general industry. Find general industry data by entering your specific companys ticker symbol here. Be sure to watch the Mergent Online video (written instructions can be found here), as it will help you find the industry data

Below is Amazons Balance sheet for 2016 Amazon.com Inc (NMS: AMZN)
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date	12/31/2016
Currency	USD
Audit Status	Not Qualified
Consolidated	Yes
Scale	Thousands
Cash & cash equivalents	19334000
Marketable securities	6647000
Inventories	11461000
Accounts receivable, net & other current assets, gross	-
Less: Allowance for doubtful accounts receivable	-
Accounts receivable, net & other current assets, net	8339000
Total current assets	45781000
Land & buildings	13998000
Equipment & internal-use software	25989000
Other corporate assets	649000
Construction in progress	1805000
Gross property & equipment	42441000
Less accumulated depreciation	13327000
Property & equipment, net	29114000
Goodwill	3784000
Other assets	4723000
Total assets	83402000
Accounts payable	25309000
Accrued expenses & other current liabilities	13739000
Unearned revenue	4768000
Total current liabilities	43816000
Long-term debt	7694000
Long-term capital lease obligations	5080000
Long-term financing lease obligations	2439000
Construction liability	714000
Tax contingencies	1395000
Long-term deferred tax liabilities	392000
Other long-term liabilities	2587000
Other long-term liabilities	12607000
Common stock	5000
Treasury stock, at cost	1837000
Additional paid-in capital	17186000
Foreign currency translation adjustments, net of tax	-1001000
Unrealized gains (loss) on available-for-sale securities, net of tax	16000
Accumulated other comprehensive income (loss)	-985000
Retained earnings (accumulated deficit)	4916000
Total stockholders' equity (deficit)	19285000

Below is Amazons Income statment for 2016

Amazon.com Inc (NMS: AMZN)

Exchange rate used is that of the Year End reported date

As Reported Annual Income Statement

Report Date

12/31/2016

Currency

USD

Audit Status

Not Qualified

Consolidated

Yes

Scale

Thousands

Net product sales

94665000

Net services sales

41322000

Total net sales

135987000

Cost of sales

88265000

Fulfillment expenses

17619000

Marketing expenses

7233000

Technology & content expenses

16085000

General & administrative expenses

2432000

Other operating expense (income), net

167000

Total operating expenses & costs

131801000

Income from operations

4186000

Interest income

100000

Interest expense

484000

Other income (expense), net

90000

Total non-operating income (expenses)

-294000

Income (loss) bef income taxes- United States

24551000

Income (loss) before income taxes - International

-659000

Income (loss) before income taxes

3892000

Current income taxes - U.S. federal

1136000

Current income taxes - U.S. state

208000

Current income taxes - international

327000

Total current income taxes

1671000

Deferred income taxes - U.S. federal

116000

Deferred income taxes - U.S. state

-31000

Deferred income taxes - international

-331000

Total deferred income taxes

-246000

Provision (benefit) for income taxes

1425000

Equity-method investment activity, net of tax

-96000

Net income (loss)

2371000

Weighted average shares outstanding-basic

474000

Weighted average shares outstanding-diluted

484000

Year end shares outstanding

477000

Net income (loss) per share-basic

5.01

Net income (loss) per share-diluted

4.9

Total number of employees

341400

Number of common stockholders

2448

Foreign currency translation adjustments

-325000

Below is Amazons cash flow for 2016

Amazon.com Inc (NMS: AMZN)

Exchange rate used is that of the Year End reported date

As Reported Annual Cash Flow

Report Date

12/31/2016

Currency

USD

Audit Status

Not Qualified

Consolidated

Yes

Scale

Thousands

Cash & cash equivalents, beginning of period

15890000

Net income (loss)

2371000

Depreciation of property & equipment, including internal-use software & website development, & other amortization

8116000

Stock-based compensation

2975000

Other operating expense (income), net

160000

Losses (gains) on sales of marketable securities, net

-

Other expense (income), net

-20000

Deferred income taxes

-246000

Excess tax benefits from stock-based compensation

-829000

Inventories

-1426000

Accounts receivable, net & other current assets

-3367000

Accounts payable

5030000

Accrued expenses & other liabilities

1724000

Additions to unearned revenue

11931000

Amortization of previously unearned revenue

-9976000

Net cash flows from operating activities

16443000

Purchases of property & equipment, including internal-use software & website development

-6737000

Proceeds from property & equipment incentives

-

Acquisitions, net of cash acquired, & other investing activities

-116000

Sales & maturities of marketable securities

4733000

Sales & maturities of marketable securities & other investments

-

Purchases of marketable securities

-7756000

Purchases of marketable securities & other investments

-

Net cash flows from investing activities

-9876000

Excess tax benefits from stock-based compensation

829000

Proceeds from long-term debt & other financing activities

621000

Repayment of long-term debt

-

Repayments of long-term debt & other financing activities

-354000

Principal repayments of capital lease obligations

-3860000

Principal repayments of finance lease obligations

-147000

Net cash flows from financing activities

-2911000

Foreign-currency effect on cash & cash equivs

-212000

Net increase (decrease) in cash & cash equivalents

3444000

Cash & cash equivalents, end of year

19334000

Cash paid for interest

-

Cash paid for interest on long-term debt

290000

Cash paid for interest on capital & finance lease obligations

206000

Cash paid for income taxes

412000

2016
Ratio Calculations						Equations
Current ratio		/		=	#DIV/0!	current assets / current liabilities
Debt/equity ratio		/		=	#DIV/0!	total liabilities / total equity
Free cash flow		-		=	$ -	total operating cash flow - capital expenditures
Earnings per share		/		=	#DIV/0!	net income / common shares outstanding
Price/earnings ratio		/		=	#DIV/0!	stock price / earnings per share
Return on equity		/		=	#DIV/0!	net income / total equity
Net profit margin		/		=	#DIV/0!	net income / total revenue