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Research Paper: Amazon Industries For this assignment, you will continue researching Amazon. Compose a paper on the financials of Amazon; you will choose two ratios from each category (liquidity,...

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Research Paper: Amazon Industries

For this assignment, you will continue researching Amazon. Compose a paper on the financials of Amazon; you will choose two ratios from each category (liquidity, profitability, and solvency) and conduct an analysis as well as highlight key areas/trends of the income statement and balance sheet. Be sure to answer the following questions in your response:

§ What do the ratios reflect?

§ Does Amazon appear healthy and headed in the right direction? Explain.

§ How does Amazon compare to another firm in the same industry in regards to financial metrics?

Your paper must be at least two pages in length, and you must use at least two sources. Adhere to APA Style when creating citations and references for this assignment.

Please see attached papers on Amazon completed already for this course.

Answered Same Day May 01, 2021

Solution

Sumit answered on May 02 2021
151 Votes
1.
Liquidity Ratio: The liquidity ratios are the ratios used by the companies to determine the liquidity of the company by measuring whether the company will be able to meet the short-term obligations of the company with the cu
ent assets of the company. The two liquidity ratios calculated under this assignment are as under:
(a). Cu
ent Ratio: Cu
ent Ratio is the ratio which is used by the companies to determine whether the cu
ent assets of the company are sufficient to pay the cu
ent liabilities of the company. The formula used to calculate the cu
ent ratio of the company are as under:
Cu
ent Assets / Cu
ent Liabilities
    Cu
ent Assets (In Billions $)
     $ 132.73
    Cu
ent Liabilities (In Billions $)
     $ 126.39
    Cu
ent Ratio
    1.05

(b). Liquid Ratio: Cu
ent Ratio is the ratio which is used by the companies to determine whether the liquid assets of the company are sufficient to pay the cu
ent liabilities of the company. The formula used to calculate the liquid ratio of the company are as under:
Liquid Ratio / Cu
ent Liabilities
    Liquid Assets (In Billions $)
     $ 108.94
    Cu
ent Liabilities (In Billions $)
     $ 126.39
    Liquidity Ratio
    0.86
Profitability Ratio: Profitability ratios are the ratios used to determine the net profit generated by the company in relative to its revenue, operating costs, balance sheet items or shareholders equity. The two profitability ratios...
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