Financial performance analysis of Amazon using ratio analysis, vertical and horizontal analysis, and cash flow evaluation. Includes Excel computations and presentation slides summarizing key findings. Key findings:
- Liquidity and capital structure: current assets as percent of total assets improved year over year, while property and equipment share decreased. Stockholders' equity increased.
- Working capital: negative cash conversion cycle with DPO rising, DIO improving, and DSO slightly lengthening. Net AR as a percent of revenue rose.
- Profitability: cost of sales ratio declined, gross profit ratio improved, and profit margin recovered after a dip in 2022. ROA improved and debt-to-equity decreased.
- Cash flow: operating cash flow increased significantly year over year, investing outflows moderated, and free cash flow turned positive.