Ratio Analysis For Amazon

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It starts in 1995 as the biggest book store and then extended to sell number of other products like electronics, jewelry, tools, auto and industrial. It offers to customers a huge number of products to choose from, also it personalizes the shopping for the customers based on their purchases. One of the most important key feature in Amazon is provides the customers with secure payment systems with protecting the customer information, full information on the products and also it has different registration depend on the customer like wedding, baby or students to give them privilege that meet all the customers need. Moreover Amazon.com started in 2003 to offer a service for third party to use amazon.co website to sell new or used products. …show more content…
The quick ratio as quick assets/ current liabilities this ratio is more conservative than the current and it shows that Amazon will be able to cover each $1 have by $ 0.82. This percentage consider not the favor of the company as it supposes to be at least each $1 in the company be covered by $1 too. And as for cash ratio cash+ cash equivalents + invested funds/ current liabilities. Also the Cash Ratio measure the ability of Amazon to repay the debtor in short term. This ratio refines the numbers in that have in current and quick ratios. Here Amazon facing disability to cover only 62 % of the short term debts. Turnover inventory is cost of the sales / inventory. This shows that Amazon was able to sell and replace the inventories around 7.56 times in 2014 but it was less than 2013 which was 7.62 times. The Daily sales outstanding as (Account Receivable / Net credit Sales) *365. The DSO shows how many days that Amazon need to collect the revenue after the sales. So in 2014 Amazon need 23 days to collect the revenue which less than 2013 as 23.3 days. Return On Assets as Net Income/Total Assets, Amazon faces a problem in the profitability in 2014 as it ROA shows decrease in 2014 by -0.44% instate of the increase that happen in 2013 by

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