MIT Sloan logo

MIT Sloan is the leader in research and teaching in AI. Dive in to discover why.

contact

MBA

Through intellectual rigor and experiential learning, this full-time, two-year MBA program develops leaders who make a difference in the world.

Leaders for Global Operations

Earn your MBA and SM in engineering with this transformative two-year program.

Master of Finance

A rigorous, hands-on program that prepares adaptive problem solvers for premier finance careers.

Master of Business Analytics

A 12-month program focused on applying the tools of modern data science, optimization and machine learning to solve real-world business problems.

Master of Science in Management Studies

Combine an international MBA with a deep dive into management science. A special opportunity for partner and affiliate schools only.

PhD

A doctoral program that produces outstanding scholars who are leading in their fields of research.

Undergraduate

Bring a business perspective to your technical and quantitative expertise with a bachelor’s degree in management, business analytics, or finance.

MBA Early (Deferred admissions option)

Apply now and work for two to five years. We'll save you a seat in our MBA class when you're ready to come back to campus for your degree.

Executive Programs

MIT Executive MBA

The 20-month program teaches the science of management to mid-career leaders who want to move from success to significance.

MIT Sloan Fellows MBA

A full-time MBA program for mid-career leaders eager to dedicate one year of discovery for a lifetime of impact.

System Design & Management

A joint program for mid-career professionals that integrates engineering and systems thinking. Earn your master’s degree in engineering and management.

Executive Education

Non-degree programs for senior executives and high-potential managers.

Visiting Fellows

A non-degree, customizable program for mid-career professionals.

Teaching Resources Library

Accounting

Finance

Amazon.com, Inc.

By

Christopher F. Noe

Joseph P. Weber

Feb 19, 2019

Abstract

On May 15, 2017, Amazon.com celebrated the 20th anniversary of its initial public offering (IPO). The company’s first twenty years was a period of remarkable growth but with very little to show in terms of accounting earnings. This reflected Amazon’s strategy of investing in expansion and research and development with the idea that sacrificing profitability in the short-term would allow the company to create value over the long-term. Relatedly, and perhaps not surprisingly, Amazon’s voluntary non-GAAP disclosures emphasized cash flow performance measures, not accounting earnings. Students are asked to contemplate potential pathways to dramatically higher profitability for Amazon.

Learning Objectives

To understand the layout and terminology of the cash flow statement as well as how the cash flow statement and income statement relate to one another.

Appropriate for the Following Course(s)

financial accounting

Amazon.com Inc.

*TEACHING NOTES AND SUPPLEMENTAL MATERIALS ARE ONLY AVAILABLE TO EDUCATORS WHO HOLD TEACHING POSITIONS AT ACADEMIC INSTITUTIONS.