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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: tom rusnak who wrote (121838)	3/27/2001 12:58:39 AM
From: Glenn D. Rudolph	Respond to of 164684

I've always enjoyed your posts on Amazon and have certainly gained a much more confortable existance with my short position. Can you enlighten us about how sure you are regarding your working capital numbers? Thanks and best wishes, Tom, I just almost finished a post answering this and then in error hit the escape key so here we ago again but I will be brief: Amazon had cureent assets of $1,361,129 million at the end of Q4 of 2000. This number is arrived at by adding $822,435 million in cash and cash equivalents, $278,087 million in short term investments, $174,563 million in inventory and $86,044 million in pre-paid expenses. Current liabilities were $485,383 million accounts payable merchandise, $403,800 million in other current liabilities such as accrued payroll, accrued lease payments, payables to shipping firms, etc., $85,773 million was interest payable on debt on January 31, 2001. These current liabilities equal $974,956 million. The $1,361,129 million less the $974,956 million left working capital at $386,173 million. Amazon then took a restructuring charge of $150 million in January to close the distribution center by pre-paying an agreed upon amount on the lease and some payroll issues for the layed off employees. This left $236,173 million in working capital. Basing revenue on management's guidance, cash burn is about $2.7 million daily. However, there is only $2.3 million daily loss in working capital. There has been about 85 days since January 1, 2001 so working capital has decreased another $195,500 million. That leaves $40,673 million in working capital as of today. There have been no numbers released between quarters so I expect when we see the numbers for Q1 2001 working capital will be about $30 million. That makes working capital at about zero on tax day. My numbers will vary slightly from actual figures but I do not expect to be off more than 20 days.