The Financial Conditions Of Amazon Inc.

1416 Words6 Pages Inc. has been known as one of the fastest growing retailers around the world. During 2013, the company has achieved US$74.4 billion of net sales revenue. Compared to 2012, Amazon’s net sales revenue has increased by 22%. The company’s sales revenue exceeds its competitor, e-Bay, by US$58.4 billion or 364%. Besides sales revenue, Amazon is also the largest online retailer in terms of market capitalization. Market capitalization is the total dollar market value of all of a company 's outstanding shares. As of the close of August 2014, the market capitalization of Amazon is approximately US$156.6 billion, which surpasses e-Bay by US$87.6 billion or 127%. Although some online retailers have closed down during financial crisis from 2008 to 2009, the company still survives with a positive performance during the difficult times. Since Amazon becomes a publicly traded company in 1997, the company has developed robust financial conditions.
Financial Conditions Analysis
Studying the financial statements of Amazon is essential in assessing the financial conditions of the company. According to Generally Accepted Accounting Principles of United States, a full set of financial statements consists of a balance sheet, an income statement, a statement of cash flow, and a statement of shareholders’ equity. A balance sheet or statement of financial position accounts for a company 's assets, liabilities, and ownership equity at a given point in time. An income statement, also known
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