Financial statement analysis and common stock valuation

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Amazon.com Inc., the result of its operating activities.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Amazon.com Inc. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Amazon.com Inc..

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Amazon.com Inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Income Statement

The income statement (statement of earnings) reports on the performance of Amazon.com Inc., the result of its operating activities.

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Amazon.com Inc. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Amazon.com Inc. earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the Amazon.com Inc. assets. Operating performance ratios describe the relationship between the Amazon.com Inc. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Payables Payment Period

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• FCFE Growth Rate (g)