Question

Examine the statement of cash flows for Amazon. Where is Amazon generating its cash? What investments did Amazon make over the past fiscal year? Did Amazon have financing activities? How would you describe the overall cash position of your company? Again, use the notes to the financial statements (not ratio analysis) to support your findings.

Answer 1

Amazon.com Inc. (AMZN), the world’s biggest on-line retailer, is developing swiftly in a vast variety of groups below founder and CEO Jeff Bezos, together with its center e-trade operations, cloud offerings, virtual advertising, groceries, and prescription drugs. It additionally sells merchandise including the Alexa private assistant and Amazon ranks as one of the world's pinnacle groups via way of means of marketplace value. As of August nine, 2020, Amazon had a marketplace cap of $1.6 trillion

The organization's internet profits almost doubled 12 months-over-12 months (YOY) in Q2 2020, which ended June 30, 2020. Net profits rose 99.7% to $5.2 billion for the second one zone in comparison to the identical 3-month duration a 12 months in the past. Operating profits grew 89.5% to $5.eight billion. Revenue, which Amazon calls overall internet income, rose 40.2% to $88.nine billion for the zone.

Amazon's Business Segments

Amazon divides its commercial enterprise into 3 segments: North America, International, and AWS.three The first of those segments, North America and International, seek advice from geographical breakdowns of Amazon's retail commercial enterprise. They generate sales from retail income in North America and the relaxation of the world, in addition to from subscriptions and export income for the ones areas.4 Retail can in addition be damaged down into on-line shops, comprising the majority of income, and bodily shops. Company-wide, on-line shops accounted for $45.nine billion in income in Q2 2020, or approximately 52% of internet income, whilst bodily shops generated $three.eight billion in income, or approximately 4% of internet income

There is one Amazon section that has now no longer thrived in current years: the International commercial enterprise. This section includes Amazon's retail commercial enterprise for patron merchandise and subscriptions for internationally-centered on-line shops. It additionally consists of export income from the ones shops, however now no longer the ones from North America-centered on-line shops. Amazon has misplaced cash in every of the closing three years in its International section.6 However, in Q2 2020, the section published an working earnings of $345 million in comparison to an working loss of $601 million for the 12 months-in the past zone. Net income for the International section grew 38.5% to $22.7 billion, comprising approximately 25% of the organization's overall internet income.

Amazon's Recent Developments

Amazon is going through a brand new antitrust research into its on-line marketplace. The research is being led via way of means of the U.S. Federal Trade Commission and legal professionals trendy from New York and California. The organization is going through extended scrutiny over its use of facts gathered from third-birthday birthday celebration dealers on its platforms. Both competition and regulators declare that Amazon is the use of the records to release competing merchandise, which violates its personal said policies

Amazon has been step by step racking up investments to put itself for the destiny as its center commercial enterprise slows.

Within the beyond 12 months alone, Amazon has introduced extra than 1/2 of a dozen predominant investments representing billions of dollars. The investments on the whole consciousness on new transport groups and logistics, however additionally consist of different areas, including its funding in a brand new headquarters. Amazon made clean its pursuits withinside the transportation and logistics area via way of means of figuring out such offerings as ability competition in a regulatory submitting in advance this 12 months.

Amazon.com, Inc. engages withinside the retail sale of patron merchandise and subscriptions in North America and internationally. It operates thru the North America, International, and Amazon Web Services (AWS) segments. The organization sells products and content material bought for resale from vendors, in addition to the ones supplied via way of means of third-birthday birthday celebration dealers thru retail Websites, including amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. It additionally manufactures and sells digital devices, together with kindle e-readers, hearthplace tablets, hearthplace TVs, and echo; and presents Kindle Direct Publishing, an internet carrier that permits unbiased authors and publishers to make their books to be had withinside the Kindle Store.