Financial Analysis of Amazon.com
Q1 - 9. Brief Description of the Company:
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
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Ernst and Young LLP, a Seattle based independent registered public accounting firm serves as the auditor for Amazon.com.
Descriptive Financial Information:
Q10.
(In millions except per share data)
Items: Year 2005 Year 2004
Net Sales Revenue $ 8,490 $ 6,921
Total Expenses
(Including taxes and cost of goods sold)
$ 8,149
$ 6,163
Net Income (Loss) $ 359 $ 588
Basic Earnings per share $ 0.87 $ 1.45
Comprehensive Income $ 333 $ 582
Reasons for differences between net income and comprehensive income: The reasons for differences between net income and comprehensive income as reported in the financial statements are the comprehensive income includes foreign currency translation adjustment (net of tax), decline of unrealized gains on available-for-sale securities (net of tax effect), and amortization of unrealized loss on terminated Euro Currency Swap (net of tax).
Q 11 – 13.
Items: Year 2005 (in millions)
Cash inflow (Outflow) from operating activities $ 733
Cash inflow (Outflow) from investing activities ($ 778)
Cash inflow (Outflow) from financing activities ($ 193) Q14. Did the company pay dividends during the year? If so, how much?
The company did not pay any dividends during the year 2005.
Q 15 – 16.
Items: Year 2005 (in millions)
Interest paid $ 105
Income taxes paid $ 12
Q17. What were the main
Amazon is a Fortune 500 e-commerce company based in Seattle, WA. It is one of the top companies that sells the most goods over the internet.
Amazon.com was founded in 1994, it started by selling books online. As it grew, the company started offering various products and services. Some goods include: DVDs, videos, electronics, camera and photography, clothing apparels, shoes, and so forth. Other retailers have merged with Amazon.com to offer diverse quality of items based on different degrees of usage, such as new, refurbished, and used items. The company 's headquarter is in Seattle, Washington. It has six global websites that serves customers that are based in the United States, the United Kingdom, Germany, France, Canada, and Japan. Their website features: e-mail order verification, customer review on products, and one-click shopping.
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
This report presents the financial analysis of Macy’s Inc. The company’s financial position is gauged using ratio analysis and suggestions on improvements are provided. The ratios will be compared to one of its top competitors Dillard’s. Using 2014 key financial statements such the income statement, balance sheet, cash flow, and key statistics found on yahoo finance. It also analyzes the company’s historical stock prices and will compute the stock average, standard deviation, and beta over a 60 month period and compares it to the market average. It then will transition into reviewing future growth estimates and will use the constant growth model to compute the company’s fundamental value. Also, it will review analyst opinion
Amazon was originally incorporated in Washington in 1994 and later reincorporated in the state of Delaware in 1996. Amazon.com (Amazon), like Overstock is an online retailer that sells all sorts of different products and merchandise on its website. According to Mergent Online, the products on Amazon’s website “primarily include merchandise and content purchased for resale from vendors and those provided by party sellers, and it also manufactures and sells the Kindle e-reader” and they also provide “services such as Amazon Web Services (AWS), fulfillment, miscellaneous marketing and promotional agreements, such as online advertising and co-branded credit cards. Amazon consists of two separate business segments, North America and International. North America consists of “amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused websites such as www.amazon.com and www.amazon.ca and include amounts earned from AWS” and includes the export sales from the above mentioned websites (Mergent Online, 2011). The International business segment consists of “amounts earned from retail sales of consumer products (including from sellers) and subscriptions
The first company, Amazon.com, has been in business since 1995 when Jeff Bezos started his
The next segment of this look at the financial condition of Amazon.com involves a horizontal and vertical analysis of Amazon’s income statement and balance sheet. Since both of these statements involve many segments, we will address key and noteworthy figures to gain a broad understanding of Amazon’s progress in the last three years.
This portion of paper investigates the tangible and intangible assets possessed by Amazon incorporation. According to International accounting standards, tangible assets are listed under the head of property, plant and equipment disclosure. Amazon incorporation have different tangible assets under the head of property plant and equipment which are land and buildings, equipment and internal use software, corporate assets, construction in progress, accumulated depreciation and other related minor assets. The financial analysis of Amazon incorporation suggest that the value of equipment and internal use software for the company enhanced during the period 2014 till 2015 and the value was further increased
Books afforded Bezos, and his believers, a commoditized, simple products with little variance in size, shape, or content (Stone, 2013). The initial name of Amazon, was Cadabra, but this was replaced by Amazon after complaints from lawyers and customers alike that the name was indistinguishable from “cadaver” (Stone, 2013). The inspiration for the name Amazon was homage to the Amazon River, which is the world’s largest river. Bezos targeted his company to be the planet’s largest bookstore, and ultimately “The Everything Store” (Stone, 2013). May 15, 1997 Amazon filed for their Initial Public Offering (IPO) on the NASDAQ under the ticker symbol AMZN. Bezos established Amazon in Seattle, Washington because of the state’s minimal citizenship and scant requirements to collect state tax on out of state transactions (Stone, 2013). Amazon has evolved from a lowly retail ecommerce bookstore into one of the most successful companies on the planet with potentially limitless growth.
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).
Amazon’s competitors include Apple Inc., Barnes & Noble, Inc. and Wal-Mart.com USA, LLC (Hoovers, 2014). For the purpose of this financial analysis we will be comparing Amazon to the SIC Code: 5961, CATALOG AND MAIL-ORDER HOUSES, industry average. The financial analysis will take into consideration the balance sheet, income statement and ratios for the past 5 years, 2009 to 2013.
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. Bezos was assigned to find good Internet companies in which to invest. During the summer of 1994, he stumbled across a
become well known as a company that enables sellers to sell their products on its website as well
Amazon.com was originally founded in 1994 by Jeff Bezos in Seattle, Washington. It is the largest internet based retailer in the United States. In 1994, Bezos left his employment as vice-president of D. E. Shaw & Co., a Wall Street firm, and moved to Seattle. He began to work on a business plan for what
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,