18 Mar As the new?business manager?working for the Chief Financial Officer (CFO) of your company, you want to review historical financial information to be fully informed of yo
As the new business manager working for the Chief Financial Officer (CFO) of your company, you want to review historical financial information to be fully informed of your company’s business valuation so you can provide guidance on near future financial decisions. You decide to put together a presentation on your company’s financial performance that assesses the cash flow, valuation, and KPIs for financial stability that you will present at the next management meeting. Your ultimate plan is to write a financial plan that will lead to future company growth.
Using your selected company and research from Week 1, create an 8- to 10-slide presentation to assess the company’s financial growth and sustainability.
- Identify 2 key performance indicators.
- Relate the stock price to price-to-earnings ratio.
- Explain the market capitalization and what it means to the investor.
- Identify trends in stock price, dividend payout, and total stockholders’ equity. Relate recent events or market conditions to the trends you identified.
- Determine, based on your analysis, whether you think the organization is going to meet its financial goals, describe the outlook for growth and sustainability, and explain why you do or do not recommend this stock for purchase and how your recommendation compares to that of other analysts. For example, if your suggestion is buy, you need to explain why other analysts say sell.
Cite references to support your assessment. And please add note ln your presentation. attached the company used for this assignment (Apple)
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Financial Information and KPI of a Company
Latanya Pope Carol Sommers FIN/571 3/12/2023
Financial Information and KPI of a company
The company name: Amazon.com
The company sticker: AMZN
The Key Performance Indicators of Amazon.Com
i. Cash flow from operations: Amazon.com reported $ 46.752 billion cash flow from operations in the financial year ended 3/12/2023
ii. Price-Earning Ratio: The earning ratio of Amazon.com as of 9th march 2023 is $ 130.08
iii. Stock dividends: Amazon has been paying a stock dividend of $ 0.20 per share and its annual dividend yield is 0.21%
iv. Earnings per share: Amazon.com Inc. reported a negative earning per share of $ 0.27 for the financial year ended 31/12/2023.
v. Market experts are predicting that Amazon.com Inc will earn a revenue of $ 742.22 billion in the 12months period ending 3/12/2023. These estimates are based on good performance of the company in the fourth quarter of 2022.
vi. Average trade volume: Amazon’s average trade volume is estimated to be 54.68Million.
vii. Amazon.com Inc stock price as of 3/10/2023 is $ 91.86 and the 52-week high is $ 170.83. It is estimated that 1 year stock price of Amazon will be $ 134.50.
viii. Market capitalization of Amazon is $ 941.06billion
|
Amazon.com Revenue |
|
|
YEARS |
Amount in Million dollars |
|
2020 |
$ 386,064 |
|
2021 |
$ 469,822 |
|
2022 |
$ 513,983 |
|
Amazon.com Summary of Statement of Cash flow |
|||
|
Cash flows |
Amount in Million dollars |
||
|
|
2020 |
2021 |
2022 |
|
Net cash flow from operating activities |
$ 46,752 |
$ 46,327 |
$ 66,064 |
|
Net cash flow from investing activities |
$ (37,061) |
$ (58,154) |
$ (59,611) |
|
Net cash flow from financing activities |
$ 9,718 |
$ 6,291 |
$ (1,104) |
The wall street financial market analysts’ recommendations about Amazon.com stock is a strong buy. This is premised on the fact that Amazon is continuing to invest heavily in its logistics infrastructure and operational capabilities, which is enabling it to deliver goods faster and more efficiently. This has been a major focus for Wall Street analysts, who view this as a major advantage for Amazon.
Sources: https://finance.yahoo.com/quote/AMZN/financials/
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