Fin 330 Project One Milestone two amazon

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Southern New Hampshire University *

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330

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Finance

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Feb 20, 2024

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Fin 330 Project One Milestone two Addriann Huie Southern New Hampshire University September 29, 2022
Capital structure is the "particular debt and equity that makes up the finances of a company." This is also known as debt to capital ratio or debt to equity. Knowing this will help us understand how amazon or other companies finances its companies' operations or take on acquisitions of other companies as they grow. This is done by using a method called Weighted average cost of capital (WACC). As we continue in this series, we will talk about the capital structure and valuation of Amazon. In this evaluation, we will examine Amazon's debt, equity, and total capital structure. Amazon has always dominated its market. From its inception twenty-seven years ago, Amazon has not paid a dividend. As stated by Amazon, "We have never declared or paid cash dividends on our common stock" (Amazon, 2022). As amazon continues to grow, they continue to return those funds to build the company and not pay shareholder cash from their earnings. However, this has not hurt their investors because the stock has always returned higher than 25% returns. Amazon has always been considered a growth stock but has sometimes hit some uncharted waters.
Looking at Amazon's capital structure, let us look at its numbers. Total Liabilities 282,304,000, Total shareholders’ equity 138,245,000, and Total capital or Assets 420,549,000. AMZN's total current liabilities are 142,266,000. This includes deferred revenue, taxes payable, and payroll. Amazon's total non-current liabilities can include loans, bonds, deferred taxes, leases, and other obligations. Amazon's retained earnings for this quarter is 85,915,000, which is positive. Nothing that the company is earning the adequate amount of income to pay those liabilities. Looking at the past and present (Amazon announced
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