Amazon: Financial Ratios and Inc.

            Amazon is a company that was founded in the two-bedroom house of a man named Jeffery Preston Bezos in 1994. That simple fact is something that could never happen in an economy without

As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).

Amazon.com Inc. was initiated by Jeff Bezos in 1994 after realizing the rapid rate at which the internet and websites were growing in popularity among business organizations and individuals. In 1995, the company started operating its website for selling books, videos, compact discs, computer software and computer hardware before being incorporated in1996 as an e-commerce company (Reuters, 2015). Apparently, the company offers may products and services for sale; these products include merchandise for resale products offered by third parties. In this regard the

One of the companies that exploits opportunities and business ventures to create growth and sustainability is Amazon, Inc. Amazon was founded in 1994 and since then it has opted to take its business online and thus develop a global strategy that has paid off and turned the company into a technological business hub that serves consumers by offering an assortment of products and services in a noteworthy customer service. These strategies have made Amazon one of the leading online retailers with a revenue of US$ 88.988 billion as of 2014. This paper thus seeks to describe Amazon’s grand strategies of product development, market development, and concentration as part of its long-term growth strategy.

The first company, Amazon.com, has been in business since 1995 when Jeff Bezos started his

Again, we start with the income statement, where total sales is the denominator in the vertical analysis computation. The first thing you will see is that while Amazon credits three quarters of their total sales to product sales, the service sales category rose nearly eight percent as a portion of total sales over the last three years. To the credit of Amazon, they succeeded in reducing the portion of sales eaten into by expenses from 99% to just under 98%, with the cost of sales decreasing at the greatest rate (among operating expenses). Turning our attention to the balance sheet, total assets (necessarily equal to total liability plus stockholders equity) acts as our denominator for the analysis. We note that current assets make up just over half of the majority of total assets while plant property and equipment still stands out as a momentous portion of Amazon’s worth. Concurrently, while the company’s short-term liabilities have shrunk as a percentage of total assets, their long-term liabilities shot up from 7.95% to 12.58% of total assets. Given an increased reliance on long-term debt, corporate accountants must pay close attention to when the debt will mature to ensure that Amazon can anticipate that expense and address it appropriately. Thanks to vertical analysis, this

Its diversification and low cast strategy will help it build up an image and goodwill which will pay its fruits in near future. The strategy to partner with traditional retail partners in which amazon.com will utilize its retailing technology to build and host the traditional retailer’s online store will also be helpful as it enables Amazon to enable various brick stores to go virtual. IT innovations done in order to provide services like customer service, inventory management, fulfillment and logistics service in its already established state of the art digital infrastructure will also help them in creating a difficult entry barrier for competitors. Use of long-term debt to cover its cash expenses requirement though causes financial stress in short term, in long term economies of scale achieved will generate more benefits than expenses incurred. I would suggest Bezos to maintain its market leadership position both in terms of technological innovation as well as customer

Amazon.com is a worldwide American-based electronic company founded in 1994 by Jeff Bezos, the actual chairman and CEO. At the beginning, Amazon was just a small online book retailer, but thanks to the development of Internet at the end of the 90s, it grew quickly into a huge online retail store. Today, in the United States, one out of three online sales are made through Amazon’s website.

Amazon.com: The Brink of Bankruptcy Jeffrey Bezos, formerly a senior vice president for D. E. Shaw & Company, founded Amazon.com in 1994. D. E. Shaw is a Wall Street-based investment bank, and Mr. Bezoswas assigned to find good Internet companies in which to invest. During the summer of 1994, he stumbled across a Web site that showed the number of Internet users was growing by 2,300 percent per month. He quickly realized the vast potential of the Internet, and began putting together a list of possible products that he could sell on the World Wide Web. He eventually narrowed his list to music products and books. Although music products and books both had enormous potential, he eventually selected books because he believed that he could

Founded in 1994 by Jeff Bezos, the company went online on the World Wide Web in July 1995.Amazon focuses on increasing its market share and revenues in the long term and maintaining competitive costs of profit margins and dividends paid to its shareholders in the short term. Amazon’s sound business fundamentals include its core business and essential revenue sector of e-commerce, a new focus on media independent of Kindle, improved profit margins from Amazon’s Web Services (AWS) as well as the management of a negative cash conversion cycle (Samonas, 2015).

Founder and CEO Jeff Bezos opened the virtual doors of Amazon.com's online store in July 1995. The company was incorporated in 1994 in the state of Washington and reincorporated in 1996 in Delaware. The Company's principal corporate offices are located in Seattle, Washington. Amazon.com completed its initial public offering in May 1997, and its common stock is listed on the NASDAQ National Market under the ticker symbol AMZN. Amazon.com's fiscal year is based on the calendar year, and the last day of the fiscal year is December 31. The closing stock selling price for February 1, 2006 was $43.98. Amazon has never declared or paid cash dividends on its common

Amazon, a powerful company, has challenged many of its competitors and nearly causing them to go bankrupt. Jeff Bezos has taken amazon through changes and seemingly all for the better.

The effectiveness of Amazon’s financial management can be seen in the performance over the last 5 years. Largely investor confidence has been very high throughout the 5 years analyzed. This can be seen in the increase of 4 times the stock price. Stock prices were at an all-time high the end of 2013 at price of $405USD each (Morningstar, 2014). Through analysis of the financial statements and history of stock prices it can be determined that the financial management team at Amazon is doing a great job.

Amazon started with Jeff Bezos’ idea on creating a company based around selling on the internet (Int. Directory). In the 1994, Jeff left the Wall Street firm D.E. Shaw, moved to Seattle. There, he created a business plan, from which Amazon was born. Jeff projected a 2,300% of annual web growth over time from selling on the internet. He took the five most profitable products and put them on his stock. At the time, books were a strong suit for Amazon, and where most of their profit came from (Int. Directory). Their competition was Barnes and Noble, who were large retail booksellers dominating the market. By 1995,

Amazon.com is a Fortune 500 company that has revolutionized the retail industry. In recent years, Amazon has faced increased competition in the highly competitive online retail space as competitors invested heavily in their online storefronts and infrastructure. Positioned in a highly fragmented industry, Amazon must find solutions that can sustain its long term profitability and maintain its market share. To that end, Amazon should grow the Amazon Prime membership base and expand on its media and mobile offerings.