Purchase Solution

Accounting: Ratios for Amazon.com

Not what you're looking for?

Ask Custom Question

Please help calculate Amazon.com's actual ratios and evaluate financial performance for 2010 and 2009 (please see list below) using the balance sheet and income statement. Then compare and discuss how these trends may impact the financial condition of each company. What do ratio results mean to management (e.g. a current ratio of 1.30 means the company's current assets are 1.3 times their current liabilities). Based upon the analysis of Amazon.com would you invest in it? Why?

1) Current ratio
2) Acid-test ratio
3) Average collection period
4) Inventory turnover ratio
5) Times interest earned
6) Debt ratio
7) Operating income return on investment
8) Operating profit margin
9) Return on equity
10) Total asset turnover
11) Fixed asset turnover

Purchase this Solution

Solution Summary

This solution provides a detailed explanation of the given accounting problem.

Solution Preview

The solution is presented in a Word document.

From the results it may be determined that Amazon has shown relatively favourable results, for some ratios measures, from 2009 to 2010. Some of its activity ratios showed marked improvements from 2009 to 2010.

However the improving trends were not observed in the profitability ratios. All the profitability ratios showed a marked deterioration from 2009 to 2010. Also ...

Solution provided by:
Education
  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
Recent Feedback
  • "Thank you."
  • "thank you Chidi Ngene.. if you have any APA references would be great"
  • "Thank you so much for your help, your explanations were easy to understand and apply!"
  • "are you able to highlight the equations used either on the xlsx or a word doc as to how each graph was formed- overall looks fine i just need help understanding this myself"
  • "Chidi Ngene, M. Sc. Was extremely helpful as without the help and guidance I would have failed, but with the help I passed. I still have a lot to learn and in need of the guidance to understand and learn more on the subject. I would recommend Chidi Ngene and BrainMass to anyone that are in need of help. Thank you!!"
Purchase this Solution


Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.