Bond Project by Luka Radosevic:

Amazon Com Inc General Info Use of Proceeds - "Unless otherwise

Symbol AMZN4996697 supplement, we intend to use the net
CUSIP 023135BQ8 corporate purposes, which may inclu
Offering Date 6/1/2020 debt, repurchases of outstanding sha
Maturity Date 6/3/2025 investments, working capital, investm
Coupon Rate 0.80% expenditures. Net proceeds may be t
YTM 0.794% Certain Terms of the .800% Notes d
Current Price $100.02 principal amount of the 0.800% notes du
indenture. Unless an earlier redemption
Original Offering $1,250,000
2025 notes will mature and become due
Moody's Rating A2 unpaid interest thereon, on June 3, 2025
Standard & Poor Rating AA- of 0.800% per annum from the date of o
Callable Yes interest payment date to which interest h
Next Call Date 5/3/2025 semiannually in arrears on June 3 and D
Call Price $100.00 December 3, 2020, to the persons in wh
Coupon Type Fixed the close of business on the preceding M
Sinking Fund Provision None as the case may be. Interest will be com
consisting of twelve 30-day months. If an
notes is not a business day, the paymen
made on the next day that is a business
respect of the delay, with the same force
payment date."

Per Prospectus Dated at June 1, 20

ceeds - "Unless otherwise stated in the applicable prospectus
we intend to use the net proceeds of any offering for general
urposes, which may include, but are not limited to, repayment of
hases of outstanding shares of common stock, acquisitions,
, working capital, investments in our subsidiaries, and capital
s. Net proceeds may be temporarily invested prior to use."
ms of the .800% Notes due 2025 - " We are offering $1,250,000,000
unt of the 0.800% notes due 2025 as a series of notes under the
nless an earlier redemption has occurred, the entire principal amount of
ill mature and become due and payable, together with any accrued and
st thereon, on June 3, 2025. The 2025 notes will bear interest at the rate
r annum from the date of original issuance or from the most recent
ment date to which interest has been paid or provided for, payable
in arrears on June 3 and December 3 of each year, beginning on
2020, to the persons in whose names the 2025 notes are registered at
usiness on the preceding May 19 and November 18, each a record date,
may be. Interest will be computed on the basis of a 360-day year
twelve 30-day months. If any date on which interest is payable on the
business day, the payment of the interest payable on that date will be
next day that is a business day, without any interest or other payment in
e delay, with the same force and effect as if made on the scheduled
e."

ctus Dated at June 1, 2020

Price calculation by hand:
Current Yield 0.79%
Morning
Current Price $100.02 Star

YTM 0.397%
N 8
FV 100
PMT 0.4

Present Value of Lump Sum 96.879997

Present Value of Interest 3.1435803
Price $ 100.024

Price calculation with Excel PV:

Price ($100.024)

Price Calculation using the TI- 84 Plus:

Price $100.024

Price Value of a Basis Point (.794%+.01%)

New YTM 0.40% For every inrease in 1 bps in

New Price ($99.98) YTM, the price will also
increase by 39 cents (par of
PVBP (per 100) ($0.039) a 1000).
PVBP (per 1000) $0.39

Approximate Duration (change of 25 bps)

YTM for P- 0.272% Duration is a measure of the sensitivity of the

YTM for P+ 0.522% price of a bond to a change in interest rates.
Also, it measures how long untill an investor
will be repaid the bond's price. For example, if
P minus $ 101.012 a bond has a duration of 5 years, and interest
P plus $ 99.047 rates increase by 1% , the price should drop by
P0 $ 100.024 5% and vice versa. In this case, the duration is
Change in yield 0.25% 3.93 years (adjusted annualy), little smaller
then the YTM.
Duration 3.929

Approximate Convexity (change of 25 bps)

Convexity measures the curvature for a bond,
and it demonstrates how the duration of a
Convexity 17.53 bond changes as the interest rates change. In
this case, the convexity measures the
sensitivity of a bond's duration to changes in
yield.
 Convexity measures the curvature for a bond,
and it demonstrates how the duration of a
bond changes as the interest rates change. In
this case, the convexity measures the
sensitivity of a bond's duration to changes in
yield.
Implication on bond price volatility (75 bps)

Macaulay Duration 7.889 Semiannually

Modified Duration 7.858 Semiannually
Change in yield 0.75%
Current price 100.024

Dollar price change $ 2.95 Adjusted to annually buy dividing it by 2

Price volatility 2.95%

Approximate Accrued interest and a dirty price

Coupon payments are made semi-annualy (6/3, 12/3)

Let's suppose that an investor bought it at January 3
Bond price at January 3 was $100.015

Coupon 0.80%
Days since last payment 31
Accrual period 182.5
Settlment Price 100.02

Accrued Interest $ 0.07

Dirty Price $ 100.08

 the curvature for a bond,
how the duration of a
e interest rates change. In
xity measures the
's duration to changes in
 the curvature for a bond,
how the duration of a
e interest rates change. In
xity measures the
's duration to changes in
AMZN_IncomeStatement_Annual_As_Originally_Reported 2018
Gross Profit 59,704,000,000
Total Revenue 232,887,000,000
Business Revenue 232,887,000,000
Cost of Revenue -173,183,000,000
Cost of Goods and Services -173,183,000,000
Operating Income/Expenses -47,283,000,000
Selling, General and Administrative Expenses -18,150,000,000
General and Administrative Expenses -4,336,000,000
Selling and Marketing Expenses -13,814,000,000
Research and Development Expenses -28,837,000,000
Other Income/Expense, Operating -296,000,000
Total Operating Profit/Loss 12,421,000,000
Non-Operating Income/Expenses, Total -1,160,000,000
Total Net Finance Income/Expense -977,000,000
Net Interest Income/Expense -977,000,000
Interest Expense Net of Capitalized Interest -1,417,000,000
Interest Income 440,000,000
Other Income/Expense, Non-Operating -183,000,000
Irregular Income/Expenses
Pretax Income 11,261,000,000
Provision for Income Tax -1,197,000,000
Earnings from Equity Interest, Post-Tax 9,000,000
Net Income from Continuing Operations 10,073,000,000
Net Income after Extraordinary Items and Discontinued Operations 10,073,000,000
Net Income after Non-Controlling/Minority Interests 10,073,000,000
Net Income Available to Common Stockholders 10,073,000,000
Diluted Net Income Available to Common Stockholders 10,073,000,000
Reported Total Revenue 232,887,000,000
Reported Operating Expense -220,466,000,000
Reported Total Operating Profit/Loss 12,421,000,000
Reported Effective Tax Rate
Basic EPS 20.68
Diluted EPS 20.14
Basic WASO 487,000,000
Diluted WASO 500,000,000
Fiscal year ends in Dec 31 | USD
 2019 2020
74,754,000,000 94,240,000,000
280,522,000,000 386,064,000,000
280,522,000,000 386,064,000,000
-205,768,000,000 -291,824,000,000
-205,768,000,000 -291,824,000,000
-60,213,000,000 -71,341,000,000
-24,081,000,000 -28,676,000,000
-5,203,000,000 -6,668,000,000
-18,878,000,000 -22,008,000,000
-35,931,000,000 -42,740,000,000
-201,000,000 75,000,000
14,541,000,000 22,899,000,000
-565,000,000 1,279,000,000
-768,000,000 -1,092,000,000
-768,000,000 -1,092,000,000
-1,600,000,000 -1,647,000,000
832,000,000 555,000,000
203,000,000 2,371,000,000

13,976,000,000 24,178,000,000
-2,374,000,000 -2,863,000,000
-14,000,000 16,000,000
11,588,000,000 21,331,000,000
11,588,000,000 21,331,000,000
11,588,000,000 21,331,000,000
11,588,000,000 21,331,000,000
11,588,000,000 21,331,000,000
280,522,000,000 386,064,000,000
-265,981,000,000 -363,165,000,000
14,541,000,000 22,899,000,000

23.46 42.64
23.01 41.83
494,000,000 500,000,000
504,000,000 510,000,000
AMZN_BalanceSheet_Annual_As_Originally_Reported 2018
Total Assets 162,648,000,000
Total Current Assets 75,101,000,000
Cash, Cash Equivalents and Short Term Investments 41,250,000,000
Cash and Cash Equivalents 31,750,000,000
Short Term Investments 9,500,000,000
Inventories 17,174,000,000
Finished Goods and Merchandise 17,174,000,000
Trade and Other Receivables, Current 16,677,000,000
Trade/Accounts Receivable, Current 16,677,000,000
Gross Trade/Accounts Receivable, Current 17,172,000,000
Allowance/Adjustments for Trade/Accounts Receivable, Current -495,000,000
Deferred Tax Assets, Current
Deferred Costs/Assets, Current
Total Non-Current Assets 87,547,000,000
Net Property, Plant and Equipment 61,797,000,000
Gross Property, Plant and Equipment 95,770,000,000
Properties 31,741,000,000
Land and Improvements 31,741,000,000
Machinery, Furniture and Equipment 54,591,000,000
Furniture, Fixtures and Office Equipment 54,591,000,000
Construction in Progress and Advance Payments 6,861,000,000
Leased Property, Plant and Equipment
Other Property, Plant and Equipment 2,577,000,000
Accumulated Depreciation and Impairment -33,973,000,000
Accumulated Depreciation -33,973,000,000
Net Intangible Assets 18,658,000,000
Gross Goodwill and Other Intangible Assets 19,898,000,000
Goodwill 14,548,000,000
Intangibles other than Goodwill 5,350,000,000
Trademarks and Patents
Software and Technology 941,000,000
Customer Relationships 437,000,000
Other Intangible Assets 3,972,000,000
Accumulated Amortization and Impairment -1,240,000,000
Accumulated Amortization of Intangible Assets -1,240,000,000
Accumulated Amortization of Intangibles other than Goodwill -1,240,000,000
Accumulated Amortization of Software and Technology -377,000,000
Accumulated Amortization of Customer Relationships -208,000,000
Accumulated Amortization of Other Intangible Assets -655,000,000
Other Non-Current Assets 7,092,000,000
Deferred Tax Assets, Non-Current
Deferred Costs/Assets, Non-Current
Total Liabilities 119,099,000,000
Total Current Liabilities 68,391,000,000
Payables and Accrued Expenses, Current 61,855,000,000
Trade and Other Payables, Current 38,192,000,000
 Trade/Accounts Payable, Current 38,192,000,000
Accrued Expenses, Current 23,663,000,000
Deferred Liabilities, Current 6,536,000,000
Deferred Income/Customer Advances/Billings in Excess of Cost, Cu 6,536,000,000
Total Non-Current Liabilities 50,708,000,000
Financial Liabilities, Non-Current 39,787,000,000
Long Term Debt and Capital Lease Obligation 39,787,000,000
Long Term Debt 23,495,000,000
Capital Lease Obligations, Non-Current 16,292,000,000
Other Non-Current Liabilities 8,535,000,000
Tax Liabilities, Non-Current 2,386,000,000
Deferred Tax Liabilities, Non-Current 1,490,000,000
Provision for Tax Liabilities, Non-Current 896,000,000
Total Equity 43,549,000,000
Equity Attributable to Parent Stockholders 43,549,000,000
Paid in Capital 24,959,000,000
Capital Stock 26,796,000,000
Common Stock 5,000,000
Common Stock, with Par Value
Preferred Stock 0
Additional Paid in Capital/Share Premium 26,791,000,000
Treasury Stock -1,837,000,000
Retained Earnings/Accumulated Deficit 19,625,000,000
Reserves/Accumulated Comprehensive Income/Losses -1,035,000,000
Common Shares Issued 514,000,000
Common Shares Outstanding 491,000,000
Common Shares Treasury 23,000,000
Fiscal year ends in Dec 31 | USD
 2019 2020
225,248,000,000 321,195,000,000
96,334,000,000 132,733,000,000
55,021,000,000 84,396,000,000
36,092,000,000 42,122,000,000
18,929,000,000 42,274,000,000
20,497,000,000 23,795,000,000
20,497,000,000 23,795,000,000
20,816,000,000 24,542,000,000
20,816,000,000 24,542,000,000
21,534,000,000 25,542,000,000
-718,000,000 -1,000,000,000

128,914,000,000 188,462,000,000
97,846,000,000 150,667,000,000
144,821,000,000 211,101,000,000
39,223,000,000 57,324,000,000
39,223,000,000 57,324,000,000
71,310,000,000 97,224,000,000
71,310,000,000 97,224,000,000
6,036,000,000 15,228,000,000
25,141,000,000 37,553,000,000
3,111,000,000 3,772,000,000
-46,975,000,000 -60,434,000,000
-46,975,000,000 -60,434,000,000
18,803,000,000 19,998,000,000
20,052,000,000 21,493,000,000
14,754,000,000 15,017,000,000
5,298,000,000 6,476,000,000
1,143,000,000
1,011,000,000 948,000,000
282,000,000 179,000,000
4,005,000,000 4,206,000,000
-1,249,000,000 -1,495,000,000
-1,249,000,000 -1,495,000,000
-1,249,000,000 -1,495,000,000
-477,000,000 -555,000,000
-130,000,000 -77,000,000
-642,000,000 -863,000,000
12,265,000,000 17,797,000,000

163,188,000,000 227,791,000,000
87,812,000,000 126,385,000,000
79,622,000,000 116,677,000,000
47,183,000,000 72,539,000,000
47,183,000,000 72,539,000,000
32,439,000,000 44,138,000,000
8,190,000,000 9,708,000,000
8,190,000,000 9,708,000,000
75,376,000,000 101,406,000,000
63,205,000,000 84,389,000,000
63,205,000,000 84,389,000,000
23,414,000,000 31,816,000,000
39,791,000,000 52,573,000,000
12,171,000,000 17,017,000,000

62,060,000,000 93,404,000,000
62,060,000,000 93,404,000,000
31,826,000,000 41,033,000,000
33,663,000,000 42,870,000,000
5,000,000 5,000,000

0 0
33,658,000,000 42,865,000,000
-1,837,000,000 -1,837,000,000
31,220,000,000 52,551,000,000
-986,000,000 -180,000,000
521,000,000 527,000,000
498,000,000 503,000,000
23,000,000 24,000,000
AMZN_CashFlow_Annual_As_Originally_Reported 2018
Cash Flow from Operating Activities, Indirect 30,723,000,000
Net Cash Flow from Continuing Operating Activities, Indirect 30,723,000,000
Cash Generated from Operating Activities 30,723,000,000
Income/Loss before Non-Cash Adjustment 10,073,000,000
Total Adjustments for Non-Cash Items 21,693,000,000
Depreciation, Amortization and Depletion, Non-Cash Adjustment 15,341,000,000
Depreciation and Amortization, Non-Cash Adjustment 15,341,000,000
Depreciation, Non-Cash Adjustment
Stock-Based Compensation, Non-Cash Adjustment 5,418,000,000
Taxes, Non-Cash Adjustment 441,000,000
Other Non-Cash Items 493,000,000
Excess Tax Benefit from Stock-Based Compensation, Non-Cash Adjustment
Net Investment Income/Loss, Non-Cash Adjustment
Gain/Loss on Financial Instruments, Non-Cash Adjustment
Irregular Income/Loss, Non-Cash Adjustment
Gain/Loss on Disposals, Non-Cash Adjustment
Other Operating Gain/Loss, Non-Cash Adjustment
Changes in Operating Capital -1,043,000,000
Change in Inventories -1,314,000,000
Change in Trade and Other Receivables -4,615,000,000
Change in Trade/Accounts Receivable -4,615,000,000
Change in Payables and Accrued Expenses 3,735,000,000
Change in Trade and Other Payables 3,263,000,000
Change in Trade/Accounts Payable 3,263,000,000
Change in Accrued Expenses 472,000,000
Change in Deferred Assets/Liabilities 1,151,000,000
Change in Other Operating Capital
Cash Flow from Investing Activities -12,369,000,000
Cash Flow from Continuing Investing Activities -12,369,000,000
Purchase/Sale and Disposal of Property, Plant and Equipment, Net -11,323,000,000
Purchase of Property, Plant and Equipment -13,427,000,000
Sale and Disposal of Property, Plant and Equipment 2,104,000,000
Purchase/Sale of Business, Net -2,186,000,000
Purchase/Acquisition of Business -2,186,000,000
Purchase/Sale of Investments, Net 1,140,000,000
Purchase of Investments -7,100,000,000
Sale of Investments 8,240,000,000
Cash Flow from Financing Activities -7,686,000,000
Cash Flow from Continuing Financing Activities -7,686,000,000
Issuance of/Repayments for Debt, Net 100,000,000
Issuance of/Repayments for Short Term Debt, Net
Proceeds from Issuance of Short Term Debt
Repayments for Short Term Debt
Issuance of/Repayments for Long Term Debt, Net 100,000,000
Proceeds from Issuance of Long Term Debt 768,000,000
Repayments for Long Term Debt -668,000,000
 Issuance of/Repayments for Lease Financing -7,786,000,000
Repayments for Lease Financing -7,786,000,000
Excess Tax Benefit from Share-Based Compensation, Financing Activities
Issuance of/Payments for Common Stock, Net
Payments for Common Stock
Cash and Cash Equivalents, End of Period 32,173,000,000
Change in Cash 10,668,000,000
Effect of Exchange Rate Changes -351,000,000
Cash and Cash Equivalents, Beginning of Period 21,856,000,000
Change in Cash As Reported, Supplemental 10,317,000,000
Income Tax Paid, Supplemental -1,184,000,000
Interest Paid, Supplemental -1,429,000,000
Total Net Change in Cash
Fiscal year ends in Dec 31 | USD
 2019 2020
38,514,000,000 66,064,000,000
38,514,000,000 66,064,000,000
38,514,000,000 66,064,000,000
11,588,000,000 21,331,000,000
29,364,000,000 31,252,000,000
21,789,000,000 25,251,000,000
21,789,000,000 25,251,000,000

6,864,000,000 9,208,000,000
796,000,000 -554,000,000
-85,000,000 -2,653,000,000

-2,438,000,000 13,481,000,000
-3,278,000,000 -2,849,000,000
-7,681,000,000 -8,169,000,000
-7,681,000,000 -8,169,000,000
6,810,000,000 23,234,000,000
8,193,000,000 17,480,000,000
8,193,000,000 17,480,000,000
-1,383,000,000 5,754,000,000
1,711,000,000 1,265,000,000

-24,281,000,000 -59,611,000,000
-24,281,000,000 -59,611,000,000
-12,689,000,000 -35,044,000,000
-16,861,000,000 -40,140,000,000
4,172,000,000 5,096,000,000
-2,461,000,000 -2,325,000,000
-2,461,000,000 -2,325,000,000
-9,131,000,000 -22,242,000,000
-31,812,000,000 -72,479,000,000
22,681,000,000 50,237,000,000
-10,066,000,000 -1,104,000,000
-10,066,000,000 -1,104,000,000
-411,000,000 9,591,000,000
619,000,000
6,796,000,000
-6,177,000,000
-411,000,000 8,972,000,000
2,273,000,000 10,525,000,000
-2,684,000,000 -1,553,000,000
-9,655,000,000 -10,695,000,000
-9,655,000,000 -10,695,000,000

36,410,000,000 42,377,000,000
4,167,000,000 5,349,000,000
70,000,000 618,000,000
32,173,000,000 36,410,000,000
4,237,000,000 5,967,000,000
-881,000,000 -1,713,000,000
-1,561,000,000 -1,630,000,000
Key Financial Ratios:

Amazon Inc. 2018 2019 2020

Total Debt Ratio 0.73 0.72 0.71

Debt-Equity Ratio 2.73 2.63 2.44
Equity Multiplier 3.73 3.63 3.44
Long-term debt ratio 0.13 0.09 0.09
Times interest earned 8.77 9.09 13.90
The ratios here are done by hand, using the numbers from the financial
statements (SEC). However, all other websites from which I am getting
competitor's ratios are using different numbers (for example, total assets
of 280B, instead of 321B). Hence, I will use their ratios in order to get a
better comparison between the companies. Still, the calculations for ratios
required by the project are above.

Amazon Inc. 2018 2019 2020

Long- term Debt/Capital 0.35 0.27 0.25

Debt-Equity Ratio 0.54 0.38 0.34
Gross Margin 40.25 40.99 39.57
EBIT Margin 5.33 5.18 5.93 Per Macro Trends
ROA 6.19 5.14 6.64
ROE 23.13 18.67 22.84
ROI 15.02 13.55 17.03

Alibaba 2018 2019 2020

Long- term Debt/Capital 0.22 0.16 0.12

Debt-Equity Ratio 0.29 0.22 0.14
Gross Margin 57.23 45.09 44.6 Per Macro Trends
EBIT Margin 27.89 15.15 18.05
ROA 8.56 8.91 10.69
ROE 14.07 13.18 16.12
ROI 11.05 11.14 14.16

The ratios above were derived from the website Macro

Trends, and these are the ratios I picked for comparison
purposes. I could've picked a lot more, but I have
stoped at these, considering that it is very hard to find
a competitor for Amazon since they are diversified.
They are involved in so many different industries, that
its hard to capture their competitors. Hence, I chose
Alibaba (could've went with Netflix as well but Alibaba
doesn't have a streaming service).