Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions...

 

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Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 12,421 4,106 4,186 1,417 848 484 30,723 18,365 17,203 75,101 60,197 45,781 68,391 57,883 43,816 31,750 20,522 19,334 9,500 10,464 6,647 23,495 24,743 7,694 162,648 131,310 83,402 119,099 103,601 64,117 43,549 27,709 19,285 25,794 21,466 998 Operating profit Interest expense Cash from operating activities Current assets Current liabilities Cash and cash equivalents Marketable securities Total debt Assets Liabilities Equity Net operating assets (NOA) a. Compute profitability measures RNOA and ROE for 2018 and 2017. In which year are the measures stronger? Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 2017 RNOA ROE 0% 0% 0% 0% to te b. Compute coverage metrics Times interest earned and Cash from operating activities to total debt for 2018 and 2017. Round answers to two decimal places. Times interest earned Cash from operating activities to total debt Current ratio Quick ratio 0 0 Total liabilities-to-equity Total debt to equity c. Determine liquidity for the company for 2018 and 2017 by computing the current ratio and quick ratio. Round answers to two decimal places. 2018 2017 0 0 0 2018 0 0 0 2017 d. Compute the Total liabilities-to-equity ratio and the Total debt to equity ratio for 2018 and 2017. Round answers to two decimal places. 2018 2017 0 0 0 Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 12,421 4,106 4,186 1,417 848 484 30,723 18,365 17,203 75,101 60,197 45,781 68,391 57,883 43,816 31,750 20,522 19,334 9,500 10,464 6,647 23,495 24,743 7,694 162,648 131,310 83,402 119,099 103,601 64,117 43,549 27,709 19,285 25,794 21,466 998 Operating profit Interest expense Cash from operating activities Current assets Current liabilities Cash and cash equivalents Marketable securities Total debt Assets Liabilities Equity Net operating assets (NOA) a. Compute profitability measures RNOA and ROE for 2018 and 2017. In which year are the measures stronger? Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 2017 RNOA ROE 0% 0% 0% 0% to te b. Compute coverage metrics Times interest earned and Cash from operating activities to total debt for 2018 and 2017. Round answers to two decimal places. Times interest earned Cash from operating activities to total debt Current ratio Quick ratio 0 0 Total liabilities-to-equity Total debt to equity c. Determine liquidity for the company for 2018 and 2017 by computing the current ratio and quick ratio. Round answers to two decimal places. 2018 2017 0 0 0 2018 0 0 0 2017 d. Compute the Total liabilities-to-equity ratio and the Total debt to equity ratio for 2018 and 2017. Round answers to two decimal places. 2018 2017 0 0 0

Answer rating: 100% (QA)

a Profitability Measures For 2018 RNOA Return on Net Operating Assets NOPAT NOA 10978 million 25794 ... View the full answer