Access Millions of academic & study documents

Amazon Financial Ratio Analysis

Content type
User Generated
Subject
Accounting
Type
Homework
Showing Page:
1/6
Running Head: FINANCIAL ANALYSIS 1
Amazon financial ratio analysis
Student Name:
Professors Name:
School Affiliation:
Date:

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/6
FINANCIAL ANALYSIS 2
Amazon financial ratio analysis
Amazon financial report for 2015 link is provided below
https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-
20151231x10k.htm
Financial statements are used to report the financial capability of the company. Ideally,
International Financial Reporting Standards (IFRS) require publicly traded organizations to
prepare financial statements at the end of the trading period usually after a year. Financial reports
depict the financial muscle of the company as well as financial stability (Bauer, 2016). Among
financial statements prepared by organizations include the statement of comprehensive income,
consolidated statement of financial position (balance sheet), statement of cash flow and
statement of shareholders equity among others. As depicted by Carraher & Auken (2013),
financial statements are used to show financial wealth including amount of assets, income
generated, liabilities and debts. However, in order to make decisions from financial statements, it
is always important to prepare financial ratios derived from financial statements of the company.
In simple terms, financial ratios are derived from statements and summarize the company
finances. Also, financial ratios help managers and company shareholders to make decisions about
the future endeavours. Most importantly, financial ratios are used to determine investment by
entrepreneurs. Profit ratios are used by investors to determine whether to inject capital into the
company.
Amazon is retail business headquartered in the Seattle, Washington, United States. The
company operates as electronic commerce. Based on financial statement of Amazon Company,
stakeholders including managers and investors can readily make financial decisions.
The first financial ratio analyzed is the current ratio. It is a liquidity ratio that actually

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/6

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 6 pages?
Access Now
Unformatted Attachment Preview
Running Head: FINANCIAL ANALYSIS 1 Amazon financial ratio analysis Student Name: Professor’s Name: School Affiliation: Date: FINANCIAL ANALYSIS 2 Amazon financial ratio analysis Amazon financial report for 2015 link is provided below https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn20151231x10k.htm Financial statements are used to report the financial capability of the company. Ideally, International Financial Reporting Standards (IFRS) require publicly traded organizations to prepare financial statements at the end of the trading period usually after a year. Financial reports depict the financial muscle of the company as well as financial stability (Bauer, 2016). Among financial statements prepared by organizations include the statement of comprehensive income, consolidated statement of financial position (balance sheet), statement of cash flow and statement of shareholders’ equity among others. As depicted by Carraher & Auken (2013), financial statements are used to show financial wealth including amount of assets, income generated, liabilities and debts. However, in order to make decisions from financial statements, it is always important to prepare financial ratios derived from financial statements of the company. In simple terms, financial ratios are derived from statements and summarize the company finances. Also, financial ratios help managers and company shareholders to make decisions about the future endeavours. Most importantly, finan ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Studypool
4.7
Indeed
4.5
Sitejabber
4.4