My analysis of Amazon’s stock continued…
In terms of financials, Amazon has a market cap of $172.28 billion. The company’s year ending balance sheet shows $14,557,000 in cash, $8,299,000 in inventory and $5,612,000 in net receivables. Cash on hand at the end of 2013 was $8,658,000, so the company has just about doubled its liquid assets in a year’s time. Amazon had liabilities of accounts payable totaling $26,266,000 in 2014 compared to $21,821,000 in 2013.
Revenue has jumped from $74,452,000 in 2013 to $88,988,000 in 2014. Overall, its quarterly revenue growth is a healthy 14.60 percent. The company earned a net income profit of $274,000,000 in 2013 but a loss of $240,000,000 last year. These numbers show that Amazon’s cash and revenue are growing but so are its liabilities.
While the average business owner would frown at a net loss after 20 years of operation, it doesn’t seem to matter much to Amazon investors.
They are concerned with posterity and that is what Amazon’s CEO and founder, Jeff Bezos has preached since starting the company way back in 1995.