Company Analysi

U.S. Stock exchange:

Company Name:
Determine the free cash flow for the last two most recent years for the two
companies.

Explain how a company’s free cash flow (cash flow from operating activities minus
capital expenditures) impacts its growth potential.

Instructions: Find the numbers for these calculations from the income statement or
balance sheet for each company from the annual report or 10-K. Make sure the
numbers are not from the 10-Q or quarterly report as you want to make apples to
apples comparisons.

Your Name:
Industry: E-commerce
Company 1 Name: Amazon (Millions)
Company 2 Name: Walmart (Billions)
Company 3 Name: E-Bay (Millions)
Income Statement Information
Total Revenue
Company 1 Name: $1,054,644
Company 2 Name: $572.80
Company 3 Name: $10,271.00
Gross Profit
Company 1 Name: $297,381.00
Company 2 Name: $138.90
Company 3 Name: $8,063.00
Net Income

Company 1 Name: $21,331.00

Company 2 Name: $13.50
Company 3 Name: $1,790.00
EBITDA
Company 1 Name: $66,899.00
Company 2 Name: $37.60
Company 3 Name: $3,240.00
Balance Sheet Information
Total Assets
Company 1 Name: $321,195.00
Company 2 Name: $252.50
Company 3 Name: $20,238.00
Total Liabilities
Company 1 Name: $241,087.00
Company 2 Name: $163.90
Company 3 Name: $12,894.00
Total Stockholders' Equity
Company 1 Name: $80,108.00
Company 2 Name: $88.60
Company 3 Name: $7,344.00
Ratios Calculations
Calculate the Following Ratios:
Debt to Equity Ratio
Formula (Total Debt/Total Equity) Total Debt
Company 1 Name: $31,821.00
Company 2 Name: $ 43.80
Company 3 Name: $ 6,936.00
Gross Margin
Formula (Gross Profits/Sales) Gross Profits
Company 1 Name: $297,381.00
Company 2 Name: $138.90
Company 3 Name: $8,063.00
Operating Margin
Formula (Operating Income/Sales) Operating Income
Company 1 Name: $25,749.00
Company 2 Name: $22.60
Company 3 Name: $2,287.00
Find the appropriate amounts from the 10K annual report and insert them into the formula to calculate.
Formulas Company A
Profitability ratios:
Profit margin = Net Income/Sales 0.0202
Return on equity = Net
Income/Shareholders' Equity 0.2663
Efficiency ratios:
Inventory turnover = Cost of Goods
Sold/Average Inventory 31.8352
Accounts receivable turnover = Net
Sales/Average Accounts Receivable 43.2692
Leverage ratios:
Debt to equity ratio = Total
Liabilities/Shareholders' Equity 3.0095
Debt/Assets = Total Liabilities/Total Assets 0.7506
Liquidity ratios:
Current ratio = Current Assets/Current
Liabilities 1.1355
Quick ratio = (Current Assets -
Inventory)/Current Liabilities 0.9294

Discuss three takeaways or an analysis of what you’ve learned about each company based on their financ

Analysis
Amazon.com, Inc. reported total annual revenue of $1.054 trillio
across online retail, cloud computing, advertising, and new initia
experienced negative free cash flow of $11.6 billion, down from
fulfillment infrastructure and technology systems, expected to c
Company 1 Name: international sales and operations carry risks related to econom
In 2022, foreign exchange rate changes reduced international r
growth but faces cash flow and overseas challenges requiring s
customer experience hinge on effectively navigating these com

Walmart Inc. operates retail, eCommerce and membership war

contributor at 69% of sales. Despite pandemic and divesture he
sales growth to $567.8 billion and 9.1% operating income expa
technology, supply chain and store enhancement initiatives sup
businesses such as Walmart GoLocal and Walmart Connect ex
Company 2 Name: Environmental, Social and Governance issues across four key
include advancing diversity, equity and inclusion, reducing emis
supply chain emissions by 2030, and supporting local commun
commitments to shared value creation for all stakeholders.
 eBay Inc. operates leading online marketplace platforms facilita
2022, with approximately half generated outside the U.S. As pa
accelerate growth through managed payments and advertising
enable equitable economic opportunities through technology as
Company 3 Name: support causes around economic empowerment, sustainable c
eBay maintains substantial global scale powering its transforma
initiatives targeting empowerment at scale.
Company Analysis
Company 1

Amazon

2021: Free cash flow was $(9.1) billion, a

decrease of $15.4 billion compared to 2020.
2022: Free cash flow was $(11.6) billion, a
decrease of $2.5 billion compared to 2021.

The company’s free cash flow was negative in 2021 and

2022, mainly due to the large increase in cash capital
expenditures, which primarily reflect investments in
technology infrastructure and additional capacity to
support its fulfillment network.
The company expects to continue these investments
over time, with increased spending on technology
infrastructure.
The company believes that these investments will
improve the customer experience, lower costs, reduce
delivery times, and build a larger and more profitable
business in the future.
 Note: Choose Net Income or EBITDA. Generally accepted accounting principles (GAAP) only requires the use of Net
Income and EBITDA is optional. Foreign companies generally do not follow GAAP and use EBITDA because it normally
makes the numbers look better.

Ratios Calculations

Total Equity
$ 80,108.00
$ 88.60
$ 7,344.00

Sales
$1,054,644.00
$567.80
$10,271.00

Sales
$1,054,644.00
$567.80
$10,271.00
o the formula to calculate.
Company B

0.0238

0.1524

9.3037

88.7187

1.8499
0.6491

0.8756

0.3178

company based on their financial data. Include at least one paragraph for each company.

Analysis
annual revenue of $1.054 trillion in 2022, representing substantial growth from $386 billion in 2012. Expansion
ting, advertising, and new initiatives has enabled persistent revenue increases annually. However, Amazon
ow of $11.6 billion, down from -$9.1 billion in 2021, largely attributable to heightened capital expenditures for
nology systems, expected to continue. Additionally, while Amazon pursues global growth opportunities,
s carry risks related to economic conditions, regulations, competition, currency fluctuations, and cultural nuances.
hanges reduced international revenue by $15 billion. In summary, Amazon sustains strong top-line revenue
verseas challenges requiring strategic investments and localized expertise to manage. Company profitability and
fectively navigating these complexities.

mmerce and membership warehouse club segments worldwide, with Walmart U.S. representing the largest profit
ite pandemic and divesture headwinds, Walmart delivered resilient full-year fiscal 2022 results including 3.6%
d 9.1% operating income expansion to $22.5 billion. Strategic investments of $13 billion funded eCommerce,
re enhancement initiatives supplementary to $15.9 billion in shareholder payouts. Furthermore, emerging
Local and Walmart Connect extended its ecosystem. operationally, Walmart continues addressing
nance issues across four key pillars - opportunity, sustainability, community and ethics. Specific ESG priorities
y and inclusion, reducing emissions towards net zero operational carbon by 2040, avoiding one billion tons of
and supporting local communities. Adherence to integrity and transparency standards supplements Walmart’s
ation for all stakeholders.
e marketplace platforms facilitating $74 billion in gross merchandise volume and $10.6 billion in revenue during
nerated outside the U.S. As part of a multi-year modernization, eBay aims to enhance customer experiences and
ged payments and advertising platforms now fully rolled out. Additionally, eBay strives to empower people and
tunities through technology as part of its corporate purpose. Related strategic programs and partnerships
empowerment, sustainable commerce, diversity with equity and inclusion, ethics and innovation. In summary,
l scale powering its transformation into a streamlined, tech-driven marketplace supported by social impact
t at scale.
 Company 2

Walmart

Fiscal 2022: $24.2 billion. This is calculated as

operating cash flow of $36.1 billion minus
capital expenditures of $11.9 billion.
Fiscal 2021: $25.8 billion. This is calculated as
operating cash flow of $36.1 billion minus
capital expenditures of $10.3 billion.

Walmart generated robust free cash flow of $24.2

billion in fiscal 2022, representing disciplined 9.8%
growth over fiscal 2021. This enabled Walmart to
maintain investments of $13 billion in strategic
priorities like e-commerce, technology, supply chain,
and stores while returning $15.9 billion to shareholders
via dividends and buybacks. Looking ahead,
management forecasts stable cash generation fueling
capital deployment in fiscal 2023, including
approximately $14 billion in capital expenditures
alongside enduring dividend increases and
opportunistic repurchases. In summary, Walmart
exhibits the capacity to fund growth initiatives through
efficient operations while returning significant capital to
owners. If execution persists, resilient free cash flow
generation stands to empower Walmart’s expansion
efforts and shareholder returns over the coming fiscal
year.
ccepted accounting principles (GAAP) only requires the use of Net
s generally do not follow GAAP and use EBITDA because it normally

Debt to Equity Ratio

0.3972
0.4944
0.9444

Gross Margin
0.2820
0.2446
0.7850

Operating Margin
0.0244
0.0398
0.2227
 Company C

0.1743

0.2437

n/a

10.1192

1.7557
0.6371

1.4037

n/a

st one paragraph for each company.

g substantial growth from $386 billion in 2012. Expansion

sistent revenue increases annually. However, Amazon
argely attributable to heightened capital expenditures for
while Amazon pursues global growth opportunities,
ns, competition, currency fluctuations, and cultural nuances.
In summary, Amazon sustains strong top-line revenue
nd localized expertise to manage. Company profitability and

worldwide, with Walmart U.S. representing the largest profit

vered resilient full-year fiscal 2022 results including 3.6%
Strategic investments of $13 billion funded eCommerce,
llion in shareholder payouts. Furthermore, emerging
operationally, Walmart continues addressing
stainability, community and ethics. Specific ESG priorities
o operational carbon by 2040, avoiding one billion tons of
grity and transparency standards supplements Walmart’s
s merchandise volume and $10.6 billion in revenue during
rnization, eBay aims to enhance customer experiences and
ed out. Additionally, eBay strives to empower people and
urpose. Related strategic programs and partnerships
h equity and inclusion, ethics and innovation. In summary,
, tech-driven marketplace supported by social impact
 Stock Analysis
Instructions: Find the numbers for these calculations from the income
statement or balance sheet for each company from the annual report or
10-K. Make sure the numbers are not from the 10-Q or quarterly report
as you want to make apples to apples comparisons.

Your Name:
Industry: E-commerce
Company 1 Name: Amazon
Company 2 Name: Walmart
Company 3 Name:
Stock
Ticker Symbol
Company 1 Name: AMZN
Company 2 Name: WMT
Company 3 Name: EBAY
Stock Price
Include the stock price at the balance
sheet date. (Stock prices fluctuate daily
and are available in the Wall Street
Journal)
Fiscal Year End Date: Dec 31 2022
Company 1 Name: $144.84
Company 2 Name: $154.29
Company 3 Name: $41.73
Market Cap
Formula (Share Price/Number of Shares)
Company 1 Name: (Billion) $860.30
Company 2 Name: ( Billion) $415.40
Company 3 Name: ( Billion) $21.60
Price to Earnings Ratio
Formula (Share Price/EPS)
Company 1 Name: 76.76
Company 2 Name: 25.60
Company 3 Name: 8.24
Current Dividend Yield - Year End
Formula (DPS/Share Price)
Company 1 Name: n/a
Company 2 Name: 1.5%
Company 3 Name: 2.4%
Discuss the performance of the stocks, how the company's performance impacts the stock performance, a
Include at least one paragraph for each company. You can consult the notes to the financial statements th
financial statements to find a detailed explanation or you can use Management's Discussion and Analysis

Analysis
Amazon reported robust revenue growth of 32% to $646.9 billion
expansion across its online retail, cloud computing, advertising, a
However, pursuing innovation and long-term competitiveness pre
investments, with the company incurring $2.1 billion in net losses
capital expenditures. Nevertheless, Amazon retains ambitious gr
addressable market opportunities, though faces risks ranging fro
to competitive and regulatory challenges.

Correspondingly, Amazon’s share price rose 27% year-over-yea

per share, conferring a market valuation exceeding $1 trillion. St
periodic volatility responsive to various internal and external fact
investment outlook remains promising but uncertain, contingent
Company 1 Name: deliver revenue advancement and profit recovery while mitigating
exacting economic environment. Prevailing valuations also imply
successfully across diverse fronts and geographies.

In summary, Amazon maintains advantageous market positionin

investments to manifest sustainable Top and bottom-line expans
valuations. Effectively fostering innovation while maximizing effic
could enable Amazon to warrant ongoing investor confidence an

Walmart reported $572.8 billion in total revenue and $1.7 billion

earning $6.01 per share. Strategically, Walmart aims to serve bu
disciplined operations, digital capabilities, and trust-based compe
efforts center on opportunity, sustainability, community, and ethic
Company 2 Name: shared value. Additionally, Walmart divested Argentina, the UK,
investments on core market omni-channel, eCommerce, and ser

eBay operates leading global online marketplace platforms, leve

experiences and drive GMV, revenue via managed payments an
margins. In 2022, eBay generated $74 billion in GMV, 51% intern
Company 3 Name: transaction, payment and advertising revenue. eBay also pursue
direction and value creation, though faces risks around competit
macroeconomics.
 References
1. Yahoo Finance. (n.d.). Amazon.com, Inc. (AMZN) Stock Historical
Prices & Data. Retrieved December 5, 2023, from
https://finance.yahoo.com/quote/AMZN/history

2. Nasdaq. (n.d.). Amazon.com, Inc. Common Stock (AMZN) Historical

Data. Retrieved December 5, 2023, from
https://www.nasdaq.com/market-activity/stocks/amzn/historical
3. Yahoo Finance. (2023). Walmart Inc. (WMT) stock historical prices &
data. Retrieved from https://finance.yahoo.com/quote/WMT/history

4. Nasdaq. (2023). Walmart Inc. common stock (WMT) historical data.

Retrieved from
https://www.nasdaq.com/market-activity/stocks/wmt/historical
 formance impacts the stock performance, and their investment potential.
nsult the notes to the financial statements that appear right after the
se Management's Discussion and Analysis in the Annual (10K) Report.

Analysis
bust revenue growth of 32% to $646.9 billion in 2022, attributable to
online retail, cloud computing, advertising, and emerging initiatives.
nnovation and long-term competitiveness precipitated sizable
e company incurring $2.1 billion in net losses amid elevated costs and
Nevertheless, Amazon retains ambitious growth plans in sizable
opportunities, though faces risks ranging from macroeconomic conditions
egulatory challenges.

mazon’s share price rose 27% year-over-year to close 2022 at $4,132.52

a market valuation exceeding $1 trillion. Still, shares demonstrated
ponsive to various internal and external factors. Ultimately, Amazon's
emains promising but uncertain, contingent on the company’s capacity to
ancement and profit recovery while mitigating multifaceted risks in an
nvironment. Prevailing valuations also imply anticipations to execute
diverse fronts and geographies.

n maintains advantageous market positioning but must optimize

est sustainable Top and bottom-line expansion to justify current
y fostering innovation while maximizing efficiencies and overcoming risks
n to warrant ongoing investor confidence and capital appreciation.

72.8 billion in total revenue and $1.7 billion in net income for fiscal 2022,
are. Strategically, Walmart aims to serve busy families through
s, digital capabilities, and trust-based competitiveness. Walmart's ESG
ortunity, sustainability, community, and ethics to create stakeholder
onally, Walmart divested Argentina, the UK, and Japan units to focus
market omni-channel, eCommerce, and service expansion.

ng global online marketplace platforms, leveraging technology to enhance

e GMV, revenue via managed payments and advertising, and healthy
ay generated $74 billion in GMV, 51% internationally, earning
t and advertising revenue. eBay also pursued strategic deals supporting
reation, though faces risks around competition, regulations, security and
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MT) stock historical prices &
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