Amazon And Its Impact On The Company

Decent Essays

From figure 2, the past three fiscal years 2013-2015, Amazon incurred a significant loss for cash from investing activities with US$-4.27 billion, US$-5.07 billion and $US-6.45 billion, respectively. The company needs to spend less money than it has received from sales in investments and acquisitions in a financial period (Nurnberg, 2003).
Underlying: Amazon has acquired losses to the development of their competitors in different industries. Recent performances in some areas substantially affected the company by spending more in expenses than bringing in more in sales. The introduction of web services, tablets and retail were unsuccessful which affected the underlying performance of the company. With strong competition from competitors …show more content…

The stockholder equity was US$13.38 million. The company capitalized in a steady growth in revenues and profit over the past three fiscal years. Amazon’s shows strength with its days sales outstanding, 19.27 days. Amazon day’s outstanding sales depict that the company has a low days sales outstanding and is effective in collecting their receivables and converting it into cash, which also impact revenues.
Amazon current ratio (current assets/current liabilities) for the past fiscal year 2015 was 1.07. The current ratio shows that the company is able to meet its short-term debts when due. However, there is room for improvement, as the goal should be more than twice the current liabilities to enhance the company’s strength. This will guarantee that the company has adequate amount of cash for payroll and other expenses. For internal use software and web development, in 2015, 2014, and 2013, Amazon capitalized $642 million, $641 million and $581 million of costs, respectively. Amortization of previously capitalized amounts was $635 million, $559 million, and $451 million for 2015, 2014, and 2013, respectively.
Growth: Amazon will continue to invest in several areas of technology and content to continue to maintain customer relationships and enhance the customers’ experience. Furthermore, there will be more employment opportunities presented in order to achieve successfully technology infrastructure. Through fast

Get Access