A Complete Financial Analysis Of Amazon.com - 1302 Words

A Complete Financial Analysis of Amazon.com: Amazon Analysis Introduction Amazon.com is an online retail company formed in 1996 by Jeffrey Bezos. The company sells a multitude of products ranging from electronics to subscription services for premium members. Amazon encompasses millions of items sold through outside companies. Additionally, Amazon offers services which allow business people, such as filmmakers and singers, the rights to sell and publish their works (Amazon.com Inc Company Profile). Amazon’s return on assets has increased between 2012 and 2013. However, from 2013 to 2014 the return on assets has decreased greatly (Growth, Profitability, and Financial Ratios for Amazon). Currently the company’s return on assets is -0.51. The company’s Current Ratio is 1.12. Its quick ratio is 0.82 and its cash ratio is 0.62 (Amazon.com Inc MarketWatch). Amazon.com is in the Internet industry. Financial Analysis Amazon’s return on assets is -0.51%, while their Amazon’s return on equity is -2.35%. More positively, Amazon’s current ratio is 1.12%. Amazon’s quick ratio is 0.82%. (Amazon.com Inc Financials). Amazon’s current leverage ratio is 5.07% (Growth, Profitability, and Financial Ratios for Amazon). In comparison, the e-commerce industry has a ROA of 5.79%. The industry’s total debt to equity is 48.12%. The total current ratio for the industry is 1.22%. (Amazon.com Inc. Company Profile). Issue One of the biggest issues with Amazon.com is the growing threatShow MoreRelatedFinancial Statement Analysis of Amazon.Com Essay1719 Words   |  7 PagesFinancial Statement Analysis of Amazon.com, Inc. Introduction The purpose of this essay is to perform financial statement analysis on Amazon.com, Inc. (NASDAQ: AMZN ). We start with an introduction of Amazon and its industry. 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