Amazon Financials using Dupont Method for ROE

The following is needed with formulas. All information with the financials is attached. Each area will be for 2 figures supplied, 2016 and 2015.. Amazon’s profit margin, Amazons total asset turnover, Amazons equity multiplier and this brings you to the final for the ROE on each year. Additionally, there is a question regarding the ROE inside the document.
studypool_amazon_roe.docx

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Using the information provided below for Amazon. Provide the following showing the
formula.
Amazons Profit Margin for 2016 and 2015
Amazons Total Asset Turnover 2016 and 2015
Amazons Firm Equity Multiplier for 2016 and 2015
Return on Equity for 2016 and 2015
Finally, answer this for 2016 and 2015:
The objective of this part of the project is to note any significant changes that may affect the
ROE from year to year. If so, identify what area(s) are responsible. For example, the ROE may
have changed because there has been a significant change in the company?s TAT. Based in this
information, investigate the financial statements further by calculating a few financial ratios in
that area. Using the TAT example above: has the firms Fixed or Current Assets changed
significantly? Has the company?s cash position changed during this time?
BALANCE SHEET FOR AMAZON FURNISHED BY YAHOO FINANCE
All numbers in thousands
Period Ending
Current Assets
Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
12/31/2016 12/31/2015
19,334,000
6,647,000
8,339,000
11,461,000
–
15,890,000
3,918,000
5,654,000
10,243,000
45,781,000 35,705,000
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges
Total Assets
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill
Total Liabilities
Stockholders’ Equity
Misc. Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity
Total Stockholder Equity
Net Tangible Assets
29,114,000
3,784,000
4,723,000
83,402,000
39,048,000
4,768,000
43,816,000
7,694,000
12,607,000
64,117,000
5,000
4,916,000
-1,837,000
17,186,000
-985,000
19,285,000
15,501,000
12/31/2016
135,987,000
88,265,000
47,722,000
–
30,769,000
3,118,000
33,887,000
8,227,000
9,249,000
51,363,000
–
INCOME STATEMENT FOR AMAZON FURNISHED BY YAHOO FINANCE
All numbers in thousands
Revenue
Total Revenue
Cost of Revenue
Gross Profit
Operating Expenses
Research Development
21,838,000
3,759,000
3,445,000
64,747,000
12/31/2015
107,006,000
71,651,000
35,355,000
–
5,000
2,545,000
-1,837,000
13,394,000
-723,000
13,384,000
9,625,000
Selling General and Administrative
Non Recurring
Others
Total Operating Expenses
Operating Income or Loss
Income from Continuing Operations
43,536,000
–
Total Other Income/Expenses Net
Earnings Before Interest and Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest
Net Income From Continuing Ops
Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items
Net Income
Net Income
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares
33,122,000
–
4,186,000
2,233,000
190,000
-206,000
4,376,000
484,000
3,892,000
1,425,000
2,027,000
459,000
1,568,000
950,000
–
2,371,000
–
596,000
–
2,371,000
–
596,000
–
2,371,000
596,000
…
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