Subjects numerical reasoning

Aws Revenue Cagr 13862D

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1. **State the problem:** Calculate the percentage of revenue derived from AWS for each year from 2021 to 2024 and compute the 3-year Compound Annual Growth Rate (CAGR) of AWS revenue over this period for Amazon. 2. **Formula for percentage of revenue derived from AWS:** $$\text{Percentage of AWS Revenue} = \left(\frac{\text{AWS Revenue}}{\text{Total Revenue}}\right) \times 100$$ 3. **Formula for CAGR:** $$\text{CAGR} = \left(\frac{\text{Ending Value}}{\text{Beginning Value}}\right)^{\frac{1}{n}} - 1$$ where $n$ is the number of years. 4. **Steps:** - Extract AWS revenue and total revenue for each year 2021, 2022, 2023, and 2024 from Amazon's financial statements. - Calculate the percentage of revenue derived from AWS for each year using the formula above. - Calculate the 3-year CAGR of AWS revenue from 2021 to 2024 using the CAGR formula. 5. **Example calculation:** Assuming AWS revenue in 2021 is $X_{2021}$ and in 2024 is $X_{2024}$: $$\text{CAGR} = \left(\frac{X_{2024}}{X_{2021}}\right)^{\frac{1}{3}} - 1$$ 6. **Interpretation:** The percentage values show AWS's contribution to Amazon's total revenue each year. The CAGR indicates the average annual growth rate of AWS revenue over the 3-year period. 7. **Final answer:** Provide the percentage of AWS revenue for each year and the 3-year CAGR as a percentage rounded to two decimal places.