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 2015 Amazon.com Inc (NMS: AMZN)
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date	12/31/2015
Currency	USD
Audit Status	Not Qualified
Consolidated	Yes
Scale	Thousands
Cash & cash equivalents	15890000
Marketable securities	3918000
Inventories	10243000
Accounts receivable, net & other current assets, gross	6612000
Less: Allowance for doubtful accounts receivable	189000
Accounts receivable, net & other current assets, net	6423000
Total current assets	36474000
Land & buildings	9770000
Equipment & internal-use software	18417000
Other corporate assets	334000
Construction in progress	1532000
Gross property & equipment	30053000
Less accumulated depreciation	8215000
Property & equipment, net	21838000
Goodwill	3759000
Other assets	3373000
Total assets	65444000
Accounts payable	20397000
Accrued expenses & other current liabilities	10384000
Unearned revenue	3118000
Total current liabilities	33899000
Long-term debt	8235000
Long-term capital lease obligations	4212000
Long-term financing lease obligations	1736000
Construction liability	378000
Tax contingencies	932000
Long-term deferred tax liabilities	1084000
Other long-term liabilities	1584000
Other long-term liabilities	9926000
Common stock	5000
Treasury stock, at cost	1837000
Additional paid-in capital	13394000
Foreign currency translation adjustments, net of tax	-722000
Unrealized gains (loss) on available-for-sale securities, net of tax	-1000
Accumulated other comprehensive income (loss)	-723000
Retained earnings (accumulated deficit)	2545000
Total stockholders' equity (deficit)	13384000

Below is Amazons income statment for 2015

Amazon.com Inc (NMS: AMZN)

Exchange rate used is that of the Year End reported date

As Reported Annual Income Statement

Report Date

12/31/2015

Currency

USD

Audit Status

Not Qualified

Consolidated

Yes

Scale

Thousands

Net product sales

79268000

Net services sales

27738000

Total net sales

107006000

Cost of sales

71651000

Fulfillment expenses

13410000

Marketing expenses

5254000

Technology & content expenses

12540000

General & administrative expenses

1747000

Other operating expense (income), net

171000

Total operating expenses & costs

104773000

Income from operations

2233000

Interest income

50000

Interest expense

459000

Other income (expense), net

-256000

Total non-operating income (expenses)

-665000

Income (loss) bef income taxes- United States

2186000

Income (loss) before income taxes - International

-618000

Income (loss) before income taxes

1568000

Current income taxes - U.S. federal

215000

Current income taxes - U.S. state

237000

Current income taxes - international

417000

Total current income taxes

869000

Deferred income taxes - U.S. federal

473000

Deferred income taxes - U.S. state

-171000

Deferred income taxes - international

-221000

Total deferred income taxes

81000

Provision (benefit) for income taxes

950000

Equity-method investment activity, net of tax

-22000

Net income (loss)

596000

Weighted average shares outstanding-basic

467000

Weighted average shares outstanding-diluted

477000

Year end shares outstanding

471000

Net income (loss) per share-basic

1.28

Net income (loss) per share-diluted

1.25

Total number of employees

230800

Number of common stockholders

2578

Foreign currency translation adjustments

-210000

Below is Amazons cash flow for 2015

Amazon.com Inc (NMS: AMZN)

Exchange rate used is that of the Year End reported date

As Reported Annual Cash Flow

Report Date

12/31/2015

Currency

USD

Audit Status

Not Qualified

Consolidated

Yes

Scale

Thousands

Cash & cash equivalents, beginning of period

14557000

Net income (loss)

596000

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

6281000

Stock-based compensation

2119000

Other operating expense (income), net

155000

Losses (gains) on sales of marketable securities, net

5000

Other expense (income), net

245000

Deferred income taxes

81000

Excess tax benefits from stock-based compensation

-119000

Inventories

-2187000

Accounts receivable, net & other current assets

-1755000

Accounts payable

4294000

Accrued expenses & other liabilities

913000

Additions to unearned revenue

7401000

Amortization of previously unearned revenue

-6109000

Net cash flows from operating activities

11920000

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

-4589000

Proceeds from property & equipment incentives

-

Acquisitions, net of cash acquired, & other investing activities

-795000

Sales & maturities of marketable securities

-

Sales & maturities of marketable securities & other investments

3025000

Purchases of marketable securities

-

Purchases of marketable securities & other investments

-4091000

Net cash flows from investing activities

-6450000

Excess tax benefits from stock-based compensation

119000

Proceeds from long-term debt & other financing activities

353000

Repayment of long-term debt

-1652000

Repayments of long-term debt & other financing activities

-

Principal repayments of capital lease obligations

-2462000

Principal repayments of finance lease obligations

-121000

Net cash flows from financing activities

-3763000

Foreign-currency effect on cash & cash equivs

-374000

Net increase (decrease) in cash & cash equivalents

1333000

Cash & cash equivalents, end of year

15890000

Cash paid for interest

325000

Cash paid for interest on long-term debt

-

Cash paid for interest on capital & finance lease obligations

-

Cash paid for income taxes

273000

2015
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