Amazon's business segment is divided into three categories. North America, Interantional, and AWS. Most of our technology infrastructure investing goes to AWS. Costs other than the remaining infrastructure are invested in the US and North America sectors. There is no transaction between the three sectors.
North America
The North America segment consists of retail sales revenue through online and offline stores focused in North America. This includes sales using the subscription system.
International
The International segment consists of retail sales revenue through online and offline stores in all countries outside North America. This includes sales using the subscription system.
AWS
The AWS segment is revenue from cloud services provided to startups, businesses, government partners, and educational institutions.
While most of the sales of companies in the first half of the year declined in the aftermath of COVID-19, our company continued to increase both operating income and net income.
This is the portion of sales increase by business segment and the proportion of sales by business. North America accounted for the largest portion of our business at about 62%, while International and AWS accounted for 25% and 13%, respectively.
Online store sales include digital video content and product sales. We are currently increasing infrastructure investment to provide both physical and online products with high consumer appeal and long-lasting merchandise such as books, music, videos, games and software. In particular, the sale of products in digital form is done through a subscription service.
Physical stores are the revenue for purchasing products by visiting physical stores. Orders placed online are recorded as sales of Online Stores.
Subscription Services is revenue in the form of subscriptions including audio books, digital video, digital music, e-books, and services other than AWS through an Amazon Prime membership. It consists of an annual subscription fee or monthly subscription fee.
Cash flow from operating activities continued to increase compared to the same period last year, and investment cash flow increased. Its steady growth is expected. Its cash flows are expected to sufficiently satisfy the required cash flows for at least the next year. However, we may not be sure that the cash and cash flows it needs in the future will be affected by potential uncertainties in the future.
The impact of COVID-19 has caused the global economy to stagnate, which has greatly increased market volatility. Economic downturns like this can cause companies not to pay their sales smoothly, lower asset valuations and increase interest costs, and short-term loans may not work smoothly due to credit issues. The company uses a variety of funding avenues to invest in our operations and capital expenditures and it's expected to be able to maintain financial liquidity in the current economic conditions.
Increasing the number of shares and accounts receivable can dilute the value of existing shareholders. There may be an increase in rights offerings and accounts receivable due to liquidity needs for the development of products, services, capital infrastructure, and technology in the business currently in operation. Note please.
The company's free cash flow. As cash flows from operating activities increase, you can see that investment cash has also increased. The free cash itself has also increased.
Left figure is AMZN, right figure is industry average. Its ROE remains at around 20% and is above the industry average. The year-over-year EPS growth rate was 9.28%. Looking at the Quick Ratio, it is 0.97, which is not a number that would cause liquidity problems. LT Debt to Equity is 67.62%, which has excellent debt payment ability. Asset turnover is 1,43, which is 1.43 times higher than its own. No dividends are paid.
Amazon is a giant company in the form of monopoly as the strongest in global e-commerce. The cloud business of AWS is a small figure of about 13% of its sales, but given the high growth rate of the overall cloud industry and its monopoly with Microsoft, we can expect future growth.
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