Hi!

I'm using the Vertical Analysis to figure out the gross profit margin and net profit margin for Amazon in 2015 and 2014.

I have used the SEC10K form to find the numbers and I think I have the gross profit margin figured out. Here are my calculations.

Amazon Gross Profit

Gross Profit 2015: 35,355 in millions (net sales 107,006-cost of sales 71,651)

Gross Profit 2014: 26,236 in millions (net sales 88,988-cost of sales 62,752)

Gross Profit Margin 2015: 33% (gross profit 35,355/net sales 107,006*100)

Gross Profit Margin 2014: 29.5% (gross profit 26,236/net sales 88,988*100)

I need help in calculating the net profit margin. I am not sure I'm using the correct numbers. I am going by net income/total sales*100 but my numbers aren't turning out. Here are my calculations so far.

2015: net income 596/total sales 107,006*100=

2014: net income (241)/total sales 88,988*100=

All numbers are in millions.

May I please have a bit of help? It could be I have the wrong numbers to start with, I have the wrong numbers (they are all in millions) entered into my equations, the wrong equation, or some other reason.

Here is the link to the SEC10K report to verify my numbers to plug into the calculations.

https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-20151231x10k.htm#s11F3F7EE8265039A73D7ABB214F2F349

I would appreciate any help I can get on figuring the net profit margin.

This is due on Thursday, today is Sunday. Thank you.