{"id":1090,"date":"2023-10-04T12:25:32","date_gmt":"2023-10-04T10:25:32","guid":{"rendered":"https:\/\/creditanalyst.eu\/?p=1090"},"modified":"2023-10-04T12:25:35","modified_gmt":"2023-10-04T10:25:35","slug":"did-you-know-this-about-amazons-financial-results","status":"publish","type":"post","link":"https:\/\/kurtovicfinancial.com\/en\/did-you-know-this-about-amazons-financial-results\/","title":{"rendered":"DID YOU KNOW THIS ABOUT AMAZON\u2019S FINANCIAL RESULTS?"},"content":{"rendered":"\n

* The first financial statement presented in the Amazon’s (AMZN) annual report is\u2026the cash flow statement.<\/strong> Are they trying to tell us something or is it a mere coincidence? Anyway, draw your own conclusions, but if they believe CF statement should be the first one to present\u2026<\/strong><\/p>\n\n\n\n

* AMZN\u2019s financial reporting in the 10-K form is not that great.<\/strong> For example, they classify short-term debt under \u201caccrued expenses and other\u201d. That\u2019s why it is important to carefully read the whole report\u2026<\/strong><\/p>\n\n\n\n

* AMZN had $70bn of liquid assets, but approx. 1\/3 includes debt and equity investments into various corporates. And there is no way one can reconcile what is classified as cash, and what as a short-term financial asset.<\/p>\n\n\n\n

* AMZN\u2019s sales amounted to $514bn (!) in 2022.<\/strong> Next time you think your company is big, remember this figure.<\/p>\n\n\n\n

* Product sales account for only 47% of their total sales, 53% comes from services <\/strong>(subscriptions, advertising, third party seller, AWS). The share of services was 44% two years ago.<\/p>\n\n\n\n

* They seem to be struggling with the online sales<\/strong>, as they decreased by 1% in 2022, with the share of online sales in total sales going down from 51% in 2020 to 43% in 2022. Other segments recorded a double-digit growth.<\/p>\n\n\n\n

* Sales in Germany decreased by 10% and in the UK 6% in 2022. <\/strong>On the other side, US sales grew 13%. Signs of an upcoming recession in Europe?<\/p>\n\n\n\n

* AMZN recorded a net loss of $2,7bn in 2022,<\/strong> mostly due to increasing R&D and sales and marketing expenses, and a loss on valuation of their investment portfolio. It seems the investment in Rivian played a huge role in this loss\u2026<\/p>\n\n\n\n

* EBIT halved in 2022, and it was positive only for the AWS segment, <\/strong>the rest of the business generated losses\u2026<\/p>\n\n\n\n

* AMZN had a negative Free Cash Flow (FCF) in 2021 and 2022 (2y total $-57bn).<\/strong> They covered the gap with new debt ($41bn), their investments portfolio ($28bn), and sale of assets ($11bn). Even on a maintenance Capex basis, FCF was negative in 2022 ($-1,2bn).<\/p>\n\n\n\n

* They have incurred debt with maturities between 2057-2062. Yes, you read it correctly, some debt matures in 35-40 years.<\/strong> Average maturity is 13 years.<\/p>\n\n\n\n

* They pay 1,6% interest rate on average.<\/strong> If your financing conditions are at this level, you should be happy. Although this accounts for long maturities and largely unsecured debt, AMZN\u2019s rating is at AA\/A1,<\/strong> and not many corporates have such high rating\u2026<\/p>\n\n\n\n

________<\/p>\n\n\n\n

Surprised by the facts and figures above?<\/p>\n\n\n\n

If this is the case with AMZN, imagine how many surprises could you find in your key customer\u2019s financials?<\/p>\n\n\n\n

________<\/p>\n\n\n\n

CreditAnalyst(.eu) \u2013 Improving your company\u2019s cash flow.<\/strong><\/p>\n\n\n\n

Credit Risk Management | Debt Advisory | Financial Planning<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

* The first financial statement presented in the Amazon’s (AMZN) annual report is\u2026the cash flow statement. Are they trying to tell us something or is it [\u2026]<\/span><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,22,6],"tags":[193,133,47,55,123,32,59],"class_list":["post-1090","post","type-post","status-publish","format-standard","hentry","category-credit-guide-2","category-credit-insights","category-blog-en","tag-amazon-2","tag-cash-flow","tag-credit-analysis-2","tag-credit-risk","tag-ebitda-2","tag-financial-statements","tag-financial-statements-analysis"],"_links":{"self":[{"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/posts\/1090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/comments?post=1090"}],"version-history":[{"count":1,"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/posts\/1090\/revisions"}],"predecessor-version":[{"id":1091,"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/posts\/1090\/revisions\/1091"}],"wp:attachment":[{"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/media?parent=1090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/categories?post=1090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kurtovicfinancial.com\/en\/wp-json\/wp\/v2\/tags?post=1090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}