Directions: Ratio Calculation, use formulas to calculate the
following financial indicators for each year of data:
o Current ratio
o Debt/equity ratio
o Free cash flow
o Earnings per share
o Price/earnings ratio
o Return on equity
o Net profit margin
o Describe how and why each of the ratios has changed over the threeyear period. For example, did the current ratio increase or decrease? Why? Describe how three of the ratios you calculated for your company compare to the general industry. Find general industry data by entering your specific company’s ticker symbol here. Be sure to watch the Mergent Online video (written instructions can be found here), as it will help you find the industry data
Below is Amazons income statment for 2017


1 
current ratio 
current assets/current liabilities 
60197000/57883000 
1.039977195 
2 
debt equity ratio 
total of liabilities/total shareholders equity 
103601000/27709000 
3.7388935 
total of liabilities 
57883000+24743000+8438000+4745000+1350000+1004000+990000+4448000 
103601000 

total of shareholders equity 
27709000 

3 
free cash flow 
cash flow from operating activitiescash flow from investing activities 
1843400027819000 
9385000 
4 
EPS 
net income/no of shares 
3033000/480000 
6.31875 
5 
price earning ratio 
market price/EPS 
market price/6.318 
market price is not given 
6 
return on equity 
net income/total of equity 
3033000/27709000 
10.95% 
7 
net profit margin 
net income/total net sales 
3030000/177866000 
1.70% 
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