Amazon.

com
Period Ending 31-Dec-13
Total Revenue 74452000
Cost of Goods Sold 54181000
Gross Profit = Total Revenue - Cost of Goods Sold 20271000
Selling, General and Administrative 19526000
Operating income or Loss = Gross Profit - SG&A 745000
Total Other Income/Expenses Net -98000
Earnings before Interest and Taxes = Operating Income + Total
other income 647000
Interest expense 141000
Income before tax = Earnings before interest and taxes - Interest
expense 506000
Income tax expense 161000
Minority Interest -71000
Net income = Income before tax- Income tax expense + Minority
interest 274000
Assets
Cash and Cash Equivalents 8658000
Short-term investments 3789000
Net Receivables 4767000
Inventory 7411000
Current Deferred Tax Assets, Net
Other Current Assets
Total Current Assets = Cash + Short-term investments+Net
Receivables+Inventory+Other Current Assets 24625000
Property, Plant and Equipment (PP&E) 10949000
Goodwill 2655000
Other Assets 1930000

Total Assets = Total current assets + PP&E+Goodwill+Other Assets 40159000

Liabilities and Stockholder Equity
Account Payable 21821000
Short/Current Long-Term Debt
Accrued Salaries, Wages , and Related Benefits
Other Current Liabilities 1159000
Long-Term Debt 3191000
Other Liabilities 4242000
Deferred Long-Term Liability Changes

Total Liabilities = Accounts Payable+ Short term

debt+salaries+other current liabilities+long term debt+oter
liabilities+deferred long term liability changes 30413000
Total stockholder equity 9746000
Net Shipping Cost 3538000
Nordstorm Inc.
2-Feb-13
12148000
7432000
4716000
3371000
1345000

1345000
160000

1185000
450000

735000

1285000

2129000
1360000
227000
80000

5081000
2579000
175000
254000

8089000

1011000
7000
404000
804000
3124000
341000
485000

6176000
1913000
240000
 Term Formula
Net Income/Avg.
Return on Equity ROE Shareholder Equity

Earnings before
interest/Average total assets
= [Net income+Interest
expense(1-tax rate)]/Avg.
Return on Assets ROA Total assets
Return on Financial
Leverage ROFL ROE-ROA
Earnings before
Profit Margin interest/Sales Revenue
ROA = Profit Margin*Asset
Turnover Asset Turnover Sales Revenue/Total Assets

Cost of Goods Sold/Accounts

Accounts Payable Turnover APT Payable

Accounts Receivable Sales Revenue/Accounts

Turnover ART Receivable
Cost of Goods Sold/Average
Inventory Turnover INVT Inventory

PP&E Turnover PPET Sales Revenue/PP&E

Weeks in Inventory (1/INVT)

Cash-to-Cash cycle(in +Weeks Receivable (1/ART) -
weeks) C2C Weeks Payable (1/APT)

SG&A/Revenue SG&A/Total Revenue

Tax 0.35
Amazon Nordstrom

2.811% 38.421%

0.911% 10.372%

1.901% 28.05%

0.491% 6.906%

1.854 1.502

2.483 7.351

15.618 5.706

7.311 5.465

6.800 4.710

-10.500 11.555

26.226% 27.749%
Comments Additional Comments

Higher the better

Higher for Nordstrom because of the high

Higher the better margins and low inventory

Higher the better

Higher the better. Can be achieved by increasing margins or Nordstrom sells high end goods and hence
reducing costs in the supply chain. garners higher premium.

Higher the better

Amazon effectively financed its own

Lower the better. (No. of weeks/APT) indicates the no. of operations for 52/2.483 = 20.94 weeks with
weeks a company effectively finance operations using suppliers money, while Nordstrom could only
suppliers' money. do it for 7.07 weeks

Amazon collected its money from sale in

1/3rd of the time Nordstrom did. This is
because of the type of businesses each one
is in. In online shopping in US, everyone pays
upfront and hence amazon has that benefit
Higher the better and Nordstrom is a brick and mortar store.

Higher the better

Higher the better. Amount of revenue generated for every Amazon's PPET is coming down because of
dollar invested in PP&E. investments in several supersize warehouses.

Amazon collected its money from sale of

products more than 10 weeks before it had
Lower the better (negative is even better) to pay its suppliers.

Lower the better. One of the major expenses for Amazon is SG&A includes the costs to sell and deliver
the shipping/distribution costs. For Nordstrom that would products or services, in addition to the costs
be maintaining stores, promotions and adverstisements to manage the company.
Metric Formula Amazon
Total Length of Supply Chain in
Days (L) DRM+DWIP+DFG 49.9255273989
Inefficiency of the Supply Chain
(SCI) SCC/NS 6.74%

Supply Chain Working Capital

Productivity (SWC) (Similar to
C2C cycle) NS/SWC -7.7208337654

INV Total Inventories

RM Raw materials Inventory
SFG Semi-Finished Goods/WIP
FG Finished Goods
AR Accounts Receivables (excluding loans and ad
AP Accounts Payable Terms from Balance Sheet
CRM Cost of Raw Materials
CP Cost of Production
CD Cost of Distribution
CS Cost of Sales Terms from Income and
NS Net Sales Expenditure Statement
ICC Inventory Carrying Cost
Other Formulae
Days of Raw Material Inventory
(DRM) DRM = RM*365/CRM

Days of WIP Inventory (DWIP) DWIP = SFG*365/CP

Days of Finished Goods Inventory
(DFG) DFG = FG*365/CS

Supply Chain Costs (SCC) SCC = CD+INV*ICC

Supply Chain Working Capital
(SWC) INV+AR-AP
Nordstrom

66.7922497309

4.21%

4.9023405973