RATIO ANAYSIS
ALISAFDAR
WESTCLIFF UNIVERSITY
Abstract
This assignment is focusing on the balance sheet and income statement of Amazon in 2015. And applying it on the ratios of Liquidity ratio, Debt to Equity, Profitability ratio, Quick ratio, Inventory turnover ratio, Account Receivable turnover, Time interest earned, Long term cost debt and Average cost debt. Following is the balance sheet and Income statement of Amazon.com, Inc. (AMZN) in 2015;
Assets %
Cash and Cash equivalents 15890000 24%
Short Term Investments 3918000 6%
Net Receivables 6423000 10%
Inventory 10243000 16%
Other Current assets
Total Current Assets 36474000 56% Long term investments
Property plant and equipment 21838000 33%
Good …show more content…
ratio analysis depends on details in money related proclamations like the asset report, wage articulation and income explanation; the proportions of one thing – or a mix of things - to another thing or blend are then computed. Proportion examination is utilized to assess different parts of an organization 's working and money related execution, for example, its productivity, liquidity, benefit and dissolvability. The pattern of these proportions after some time is concentrated on to check whether they are enhancing or falling apart. Proportions are likewise thought about crosswise over various organizations in the same area to perceive how they stack up, and to get a thought of relative valuations. Proportion examination is a foundation of key investigation.
Liquidity ratios break down the capacity of an organization to pay off both its present liabilities as they get to be expected and additionally their long haul liabilities as they get to be present. At the end of the day, these proportions demonstrate the money levels of an organization and the capacity to transform different resources into money to pay off liabilities and other current …show more content…
For the greater part of these proportions, having a higher worth in respect to a contender 's proportion or the same proportion from a past period is demonstrative that the organization is doing admirably.
Profitability ratio= (Operating ratio)/Revenues
596000/107006000
=0.055
The quick ratio is a marker of an organization 's fleeting liquidity. The brisk proportion measures an organization 's capacity to meet its fleeting commitments with its most fluid resources. Hence, the proportion rejects inventories from current resources, and is computed as takes after,
The ,
Quick Ratio= (Current assets-Inventory)/(Current Liabilities)
= (36474000-10243000)/52060000
= 26231000/52060000
= 0.50
Inventory turnover is a proportion indicating how often an organization 's stock is sold and supplanted over a period. The days in the period can then be separated by the stock turnover equation to ascertain the days it takes to offer the stock close by or "inventory turnover
ALISAFDAR
WESTCLIFF UNIVERSITY
Abstract
This assignment is focusing on the balance sheet and income statement of Amazon in 2015. And applying it on the ratios of Liquidity ratio, Debt to Equity, Profitability ratio, Quick ratio, Inventory turnover ratio, Account Receivable turnover, Time interest earned, Long term cost debt and Average cost debt. Following is the balance sheet and Income statement of Amazon.com, Inc. (AMZN) in 2015;
Assets %
Cash and Cash equivalents 15890000 24%
Short Term Investments 3918000 6%
Net Receivables 6423000 10%
Inventory 10243000 16%
Other Current assets
Total Current Assets 36474000 56% Long term investments
Property plant and equipment 21838000 33%
Good …show more content…
ratio analysis depends on details in money related proclamations like the asset report, wage articulation and income explanation; the proportions of one thing – or a mix of things - to another thing or blend are then computed. Proportion examination is utilized to assess different parts of an organization 's working and money related execution, for example, its productivity, liquidity, benefit and dissolvability. The pattern of these proportions after some time is concentrated on to check whether they are enhancing or falling apart. Proportions are likewise thought about crosswise over various organizations in the same area to perceive how they stack up, and to get a thought of relative valuations. Proportion examination is a foundation of key investigation.
Liquidity ratios break down the capacity of an organization to pay off both its present liabilities as they get to be expected and additionally their long haul liabilities as they get to be present. At the end of the day, these proportions demonstrate the money levels of an organization and the capacity to transform different resources into money to pay off liabilities and other current …show more content…
For the greater part of these proportions, having a higher worth in respect to a contender 's proportion or the same proportion from a past period is demonstrative that the organization is doing admirably.
Profitability ratio= (Operating ratio)/Revenues
596000/107006000
=0.055
The quick ratio is a marker of an organization 's fleeting liquidity. The brisk proportion measures an organization 's capacity to meet its fleeting commitments with its most fluid resources. Hence, the proportion rejects inventories from current resources, and is computed as takes after,
The ,
Quick Ratio= (Current assets-Inventory)/(Current Liabilities)
= (36474000-10243000)/52060000
= 26231000/52060000
= 0.50
Inventory turnover is a proportion indicating how often an organization 's stock is sold and supplanted over a period. The days in the period can then be separated by the stock turnover equation to ascertain the days it takes to offer the stock close by or "inventory turnover