Cash flow refers to the cash and the equivalents that pass through the company, constantly entering and leaving it, in contrast to the profit remaining in the company. If it exceeds network income, we can talk about the reliability of the company and its profitability. At the end of 2019, the total cash was $36.410 million, and by the end of the year, it had risen to $42.377 million, while net income was only $21.331 million.
One can also deduce the cash ratio by dividing its amount by the current debt obligations – if the ratio exceeds one, the company is easily able to pay off its debts. At the end of 2020, the amount of cash in the company was $42.377 million. The company’s total liabilities for 2020 amounted to $126.385 million. A low ratio of ~0.3 does not mean the company is insolvent – Amazon prefers to use less cash, which sheds light on the rules of financial turnover within the company.