Customers have stopped buying their products and

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Customers have stopped buying their products and services. As of right now, Amazon charges
NETFLIX 10 more to rent a movie live stream compare to Netflix and Redbox. Lastly, the net profit margin is in the negative. There is no profit and the operation needs new structure to bring the firm back to be profitable. Overall, it seems like Amazon is not doing well, their ratios are lower than normal, and if they do not recover they will be in serious trouble. Current and historical Financial Statements (Income Statement (I/S), Balance Sheet (B/S) and Statement of Cash Flows) from the three most current years for the firm Yahoo Finance (2015) presented the financial statements for 2012, 2013 and 2014 as follow: Income statement Period Ending Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Total Revenue 5,504,656 4,374,562 3,609,282 Cost of Revenue 3,752,760 3,117,203 2,652,058 Gross Profit 1,751,896 1,257,359 957,224 Operating Expenses Research Development 472,321 378,769 329,008 Selling General and Administrative 876,927 650,243 578,224 Non-Recurring - - - Others - - - Total Operating Expenses - - - Operating Income or Loss 402,648 228,347 49,992 Income from Continuing Operations Total Other Income/Expenses Net (3,060) (28,131) 474 Earnings Before Interest And Taxes 399,588 200,216 50,466 Interest Expense 50,219 29,142 19,986 Income Before Tax 349,369 171,074 30,480 Income Tax Expense 82,570 58,671 13,328 Minority Interest - - - Net Income From Continuing Ops 266,799 87,274 17,152 Non-recurring Events Discontinued Operations - - - Extraordinary Items - - - Effect Of Accounting Changes - - -
NETFLIX 11 Other Items - - - Net Income 266,799 112,403 17,152 Preferred Stock And Other Adjustments - - - Net Income Applicable To Common Shares 266,799 112,403 17,152 Balance sheet Period Ending Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Assets Current Assets Cash And Cash Equivalents 1,113,608 604,965 290,291 Short Term Investments 494,888 595,440 457,787 Net Receivables - - - Inventory - - - Other Current Assets 2,331,973 1,858,358 1,492,713 Total Current Assets 3,940,469 3,058,763 2,240,791 Long Term Investments - - - Property Plant and Equipment 149,875 133,605 131,681 Goodwill - - - Intangible Assets 2,773,326 2,091,071 1,506,008 Accumulated Amortization - - - Other Assets 192,981 129,124 89,410 Deferred Long Term Asset Charges - - - Total Assets 7,056,651 5,412,563 3,967,890 Liabilities Current Liabilities Accounts Payable 271,327 162,453 139,607 Short/Current Long Term Debt - - - Other Current Liabilities 2,391,827 1,991,750 1,536,319 Total Current Liabilities 2,663,154 2,154,203 1,675,926 Long Term Debt 900,000 500,000 400,000 Other Liabilities 1,635,789 1,424,799 1,147,291 Deferred Long Term Liability Charges - - - Minority Interest - - - Negative Goodwill - - -
NETFLIX 12 Total Liabilities 5,198,943 4,079,002 3,223,217 Stockholders' Equity Misc. Stocks Options Warrants - - - Redeemable Preferred Stock - - - Preferred Stock - - - Common Stock 60 60 56 Retained Earnings 819,284 552,485 440,082 Treasury Stock - - - Capital Surplus 1,042,810 777,441 301,616 Other Stockholder Equity (4,446) 3,575 2,919 Total Stockholder Equity 1,857,708 1,333,561 744,673 Net Tangible Assets (915,618) (757,510) (761,335) Cash flow Period Ending Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Net Income 266,799 112,403 17,152 Operating Activities, Cash Flows Provided By or Used In Depreciation 2,781,798 2,241,680 1,702,083 Adjustments To Net Income (3,169,217) (2,376,119) (1,722,475) Changes In Accounts Receivables - - - Changes In Liabilities 198,267 66,610 25,539 Changes In Inventories - - - Changes In Other Operating Activities (61,164) 53,257 (713) Total Cash Flow From Operating Activities 16,483 97,831 21,586 Investing Activities, Cash Flows Provided By or Used In Capital Expenditures (69,726) (54,143) (40,278) Investments 100,316 (141,837) (165,003) Other Cash flows from Investing Activities (73,456) (59,988) (39,459) Total Cash Flows From Investing Activities (42,866) (255,968) (244,740) Financing Activities, Cash Flows Provided By or Used In Dividends Paid - - - Sale Purchase of Stock 60,544 124,557 3,660 Net Borrowings 398,907 279,458 (2,319)

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