Tuesday, March 19, 2013

AMZN: The Bank Of Amazon: How Long Will Suppliers, Sellers And Customers Keep The Doors Open?

The Bank Of Amazon: How Long Will Suppliers, Sellers And Customers Keep The Doors Open?
by Timothy Phillips

It is becoming obvious that both suppliers and sellers are becoming irritated with Amazon's (AMZN) rate increases and strong arming on payable terms. A recent lawsuit filed in Washington state by Amazon marketplace sellers highlights the issues Amazon is having. This will prove to be a troubling trend for Amazon, as they have depended on the cash generated by timing of payments to fully fund operations. Over the past five years Amazon has generated a combined $9.3 billion in Free Cash Flow (Operating Cash Flow less Capital Expenditures). During that same time frame Cash Flow from payment timing (Payables plus Accrued Expenses less Receivables) has been $10.7 billion. This means that since 2008, Amazon has generated $10.7 billion through its "banking" business, and lost $1.4 billion selling products and services. read more »

Get Seeking Alpha notifications with our iPhone App | Android App

More on AMZN

Amazon: Innovation In Action by Forward Looking Guru

Amazon Is Cheaper Than You Think by Josh Arnold

Something That Amazon Did Well by Paulo Santos

Other articles that mention AMZN

Analyst Targets And Earnings Roundup: What You Need To Know About Dangdang by Justin Giles

Redbox Instant Isn't The Only Growth Story At Coinstar by Chris Katje

The Facebook Stock Index: "Likes" Are A Wise Investment by Stock Market Joe


Why are you receiving this? You subscribed to real-time article alerts at Seeking Alpha.
If this email was forwarded to you and you wish to subscribe to this email, click here.

Manage your emails:
Get alerts on additional tickers and manage all your email alert choices here
I'm getting too many emails: manage your email alert choices
I'm no longer following AMZN: unsubscribe from all AMZN email alerts
This type of alert isn't helpful to me: unsubscribe from article alerts on AMZN

To ensure you receive these emails in the future, please add account@seekingalpha.com to your address book, contacts or list of safe senders.

Sent by Seeking Alpha, 345 7th Ave. Suite 1400 New York, NY 10001

No comments:

Post a Comment