Amazon Cash Flows 2019-2022

Operating activitiesInvesting activitiesFinancing activities2022$50.47B$-28.97B$-22.14BAs per a FourWeekMBA Analysis, in 2022, Amazon generated over $50 billion in cash from operating activities, while it consumed almost $30 billion in investing activities and it also consumed over $22 billion in financing activities. Connected to Amazon Business Model Walmart vs. Amazon In 2022, Amazon closed its divide in terms of total revenue, as it generated over $513 billion in revenue, compared to over $572 billion in revenue from Walmart. eBay vs. Amazon In 2021, Amazon generated almost $470 billion in revenue, vs. eBay's over $10.4 billion. In comparison, looking at revenues, Amazon was 45x times larger than eBay. Is Amazon Profitable without AWS? Amazon was not profitable once AWS was removed in 2022. In fact, Amazon, without AWS generated $10.6 billion in operating losses. While Amazon, without AWS, generated $12.2. billion operating income. Is Amazon Profitable? Amazon Business Model Amazon has a diversified business model. In 2021 Amazon posted over $469 billion in revenues and over $33 billion in net profits. Online stores contributed to over 47% of Amazon revenues, Third-party Seller Services, Amazon AWS, Subscription Services, Advertising revenues, and Physical Stores. Amazon Mission Statement Amazon's mission statement is to "serve consumers through online and physical stores and focus on selection, price, and convenience." Amazon's vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” Customer Obsession In the Amazon Shareholders' Letter for 2018, Jeff Bezos analyzed the Amazon business model, and it also focused on a few key lessons that Amazon as a company has learned over the years. These lessons are fundamental for any entrepreneur, of small or large organization to understand the pitfalls to avoid to run a successful company! Amazon Revenues Amazon has a business model with many moving parts. With the e-commerce platform which generated over $222 billion in 2021, followed by third-party stores services which generated over $103 billion, Amazon AWS, which generated over $62 billion, Amazon advertising which generated over $31 billion and Amazon Prime which also generated over $31 billion, and physical stores which generated over $17 billion. Amazon Cash Conversion Working Backwards The Amazon Working Backwards Method is a product development methodology that advocates building a product based on customer needs. The Amazon Working Backwards Method gained traction after notable Amazon employee Ian McAllister shared the company’s product development approach on Quora. McAllister noted that the method seeks “to work backwards from the customer, rather than starting with an idea for a product and trying to bolt customers onto it.” Amazon Flywheel The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages on customer experience to drive traffic to the platform and third-party sellers. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel. Jeff Bezos Day One In the letter to shareholders in 2016, Jeff Bezos addressed a topic he had been thinking quite profoundly in the last decades as he led Amazon: Day 1. As Jeff Bezos put it "Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1." Amazon Competitors Read Next: Organizational Structure, Amazon Business Model, Amazon Mission.

	Operating activities	Investing activities	Financing activities
2022	$50.47B	$-28.97B	$-22.14B

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Gennaro Cuofano

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Gennaro Cuofano

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