Amazon Financial Analysis Paper

Annual Financials for Best Buy Co. Inc. View Ratios 2013 2014 2015 Sales/Revenue 49.14B 42.41B 40.34B Sales Growth -3.08% -13.70% -4.88% Cost of Goods Sold (COGS) incl. D&A 37.53B 32.98B 31.29B COGS excluding D&A 36.63B 32.27B 30.64B Depreciation & Amortization Expense 906.88M 716M 656M Depreciation 865.46M 701M 656M Amortization of Intangibles 41.42M 15M - COGS Growth -1.52% -12.12% -5.13% Gross Income 11.61B 9.43B 9.05B

As far as the adjustments that Amazon.com has made using the LIFO approach, the company experienced a net gain in profit from 2000 to 2004. According to the financial report, in 2000 the company was at an income loss of $1,411,273 while in 2004 they experienced a positive income of $588,451 (p. 25). As per any company, there will be times of losses and gains primarily because of how well companies respond to consumers needs and wants. Since Amazon.com is internet-based and technology driven, they can easily make adjustments in their goods and services, where inventory is a concern.

Amazon.com is ranked number one out of the 'Top 25 U.S. E-commerce Retailers (ranked by annual sales) ' as of 2016 (Zaczkiewicz, p 1). Amazon ranks above many other e-commerce retailers, such as Wal-Mart, Apple, Staples, and Macy 's. The business model, customer value propositions, revenue model, marketspace, main competitors, comparative advantages, market strategy, management team, and organizational structure has helped Amazon to stay in business since 1996.

Amazon runs on four principles: “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking” (https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-20151231x10k.htm).

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

The company I selected is Amazon, Inc.com and it’s considered the “everything store”. It supply’s consumers with low prices from supplying vendors at a cheaper shipping rate included because of the companies contracts with United States Postal Services and UPS. All companies must follow specific orders and guidelines to do business in the United States. The SEC, or Securities and Exchange Commission, is the government entity that is responsible for looking after the economy by keeping corporations and businesses honest. Each company must file their financial reports to the SEC and have a chance of being audited by the PCAOB, or Public Company Accounting Oversight Board. Amazon Inc. com is one of those businesses. Amazon’s financial reporting model has assumptions and principles, there are individuals responsible for overseeing the accounting professions and they must file an annual report as well as a 10-K and 10-Q report, and many disclosures that are available to the public. They base these conditions on how their projections will change in regards to their earnings, cash flow, revenue, and balance sheets. Amazon uses a revenue growth rate, expected tax rate, and gross margin assumption (Harman, 2009). The output of the financial reporting model is driven by these assumptions, using the cash flow and earnings to build figures on the value of Amazon and to make future financial decisions. Management will continue to make the investment, operating, and financial decisions

Amazon.com 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.

Amazon went public in 1997 and began trading on the NASDAQ under the leadership of founder and CEO Jeffery Bezos. Ever since the company went public they have been publishing a yearly letter to shareholders. This letter recaps the events of the previous year and discusses their strategy and focus for the coming year. Along with the new yearly letter to shareholders you can find the letter to shareholders from 1997. The reason Bezos continues to attach the original letter to shareholders is to show investors that the company’s strategies, goals and views have not changed over the years. While the business and internet environment in which Amazon operates continues to evolve and change, their founding strategies remain. Highlighted in the original letter to shareholders Bezos states “It’s all about the long term, we believe that a fundamental measure of our success will be the shareholder value we create over the long

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.

By 2001, Amazon finally earned a quarterly profit of $5 million on revenues of over $1 billion. In 2005, Amazon launches Amazon Prime, a membership that gives faster deliveries and access to Amazon’s film and tv streaming service, of which Google chairman, Eric Schmidt, is a member (Stone, 2013). In 2007, Amazon Kindle e-book reader was launched and as of 2014, there are 2.5 million e-book titles available (Hayes, 2015).

Amazon.com was founded by Jeffrey Bezos in 1994. The company began as an online bookstore. Mr. Bezos saw the potential of the Internet as a selling platform. In the beginning, the main focus was on selling books. The reason was that there was little to no competition for selling books online. The company eventually moved to music and video, but that market had a few key distributers that could possibly compete. Amazon.com emerged at the perfect time. The late 1990’s gave the company plenty of time to create name recognition. The company’s initial public (IPO) was a huge success. Mr. Bezos’s goal was to raise 50 million dollars in capital, but made 54 million instead. This allowed the company to expand into 160 different markets across the globe.

It's already incredibly easy to save money with Amazon. That's why millions of people head to Amazon after checking their local stores for the same products. You'll find even bigger bargains if you know a few tricks to saving money. These are the hacks that savvy shoppers use to get even better deals.

A contributing factor in Amazon’s growth is the change in consumer’s behavior. Amazon is benefiting from the spike in online shopping as opposed to customers shopping in stores. In a report from the Wall Street Journal, jobs in the retail setting are declining in part due to the significant increase in store closures. As of May, roughly 2,880 stores have closed

Earlier, amazon don’t want to invest in the warehouses. But to do business, they had to invest in warehouses. So, they decided to invest in the warehouses. It was a costly decision. They had to spend $50 million for a warehouse and for getting that money, they issue bonds. Earlier, Amazon rate of return was only 0.25 % as compared to 30% for many online retailers. Amazon’s warehouses store millions of products. Their warehouses are also computerised.

The industry averages used in the section are based on 3 of the top companies in the retailers industries such as Amazon, Wal-Mart and Alibaba.