(PDF) Cash Flows at Amazon

U3 - DISCUSSION QUESTION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critique on Amazon cash flow statement...............................................................................1
Perception of investors and financial analysts towards profits as measure of performance. .2
Amazon's approach sustainable or not in future.....................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Cash Flow statements are referred as statement of cash flow which is the financial
statement that depicts transformations in balance sheet and income statement affects on cash and
its equivalents. It than further breaks down to operating, financing and investing activities. In this
context, the focus of present report will be on providing critique about Amazon's focus on Cash
Flow rather than profits. The evaluation of how analysts and investors perceived profits as
measures of performance in their financial data will be demonstrated in this report. Eventually an
argument whether Amazon’s approach can be sustainable into the future will be created in this
report.
MAIN BODY
Critique on Amazon cash flow statement
Cash flow serves as the basis for calculating the corporate equivalents of disposable
income (The Big Number. 2011). The cash flow figures of Amazon's are exploding. Over past
year, the company has generated a staggering $8.98 billion of operating cash flow and $4.37
billion of free cash flow (Auerbach, 2017). Amazon's free cash flow numbers can be deceptive
as the company's funding additional billion dollar for additional capital spending by utilising
capital leasing. The stock price of company is steadily decreasing which affecting the
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