Amazon Total Debt vs. Book Value Per Share
| AMZN Stock | ARS 1,700 5.00 0.29% |
For Amazon profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Amazon to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Amazon Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Amazon's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Amazon Inc over time as well as its relative position and ranking within its peers.
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Amazon Inc Book Value Per Share vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Amazon's current stock value. Our valuation model uses many indicators to compare Amazon value to that of its competitors to determine the firm's financial worth. Amazon Inc is the top company in total debt category among its peers. It also is number one stock in book value per share category among its peers . The ratio of Total Debt to Book Value Per Share for Amazon Inc is about 1,202,439,024 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Amazon by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Amazon's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Amazon Total Debt vs. Competition
Amazon Inc is the top company in total debt category among its peers. Total debt of Internet Retail industry is presently estimated at about 179.35 Billion. Amazon totals roughly 123.25 Billion in total debt claiming about 69% of equities under Internet Retail industry.
Amazon Book Value Per Share vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
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| = | 123.25 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
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| = | 102.50 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Amazon Book Value Per Share Comparison
Amazon is currently under evaluation in book value per share category among its peers.
Amazon Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Amazon, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Amazon will eventually generate negative long term returns. The profitability progress is the general direction of Amazon's change in net profit over the period of time. It can combine multiple indicators of Amazon, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington. AMAZON COM operates under Internet Retail classification in Argentina and is traded on Buenos-Aires Stock Exchange. It employs 1335000 people.
Amazon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Amazon. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Amazon position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Amazon's important profitability drivers and their relationship over time.
Use Amazon in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Amazon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amazon will appreciate offsetting losses from the drop in the long position's value.Amazon Pair Trading
Amazon Inc Pair Trading Analysis
The ability to find closely correlated positions to Amazon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amazon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Amazon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Amazon Inc to buy it.
The correlation of Amazon is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Amazon moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amazon Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Amazon can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Amazon position
In addition to having Amazon in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Printing and Publishing Thematic Idea Now
Printing and Publishing
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Printing and Publishing theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Printing and Publishing Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Amazon Stock
When determining whether Amazon Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amazon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amazon Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amazon Inc Stock:Check out Trending Equities. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
To fully project Amazon's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Amazon Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Amazon's income statement, its balance sheet, and the statement of cash flows.