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On the other hand, Amazon generates a lot of free cash flow. Roughly $10B worth last year or 7% of revenue (or an impressive 21% of gross profit). It earns thi
by vm 9y ago
On the other hand, Amazon generates a lot of free cash flow. Roughly $10B worth last year or 7% of revenue (or an impressive 21% of gross profit).
It earns this healthy margin because customers pay Amazon before Amazon pays suppliers. Normal companies have to fund their businesses by raising debt or equity, whereas Amazon gets free loans from merchants. Exceptional way to fund growth.