Fin 571

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Date Submitted: 11/08/2014 02:45 PM

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Interpreting Financial Results-Amazon

Lawana Harrison

FIN/571

10/27/14

Richard Vermeer

Interpreting Financial Results-Amazon

Amazon is a company that is world-wide and very successful. It is important to look over the financial statements to see how well the company is doing based on each year financial statements. This information gives the company an idea of how well they are producing and selling goods. The company can then decide if there are changes that can be made in order to be more successful in the end. There seems to be a decrease in the ratios over time but not by much. In 2011 current ratio reflects 117% compared to 2012 112% that amount was lowered. However, 2012 current ratio of 112% compared to 2013 107% was actually higher. It seems as the numbers are lowered throughout the years.

Amazon Financial Ratios

Annual Income Statement (values in 000's)

Period Ending: | Trend | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 |

Liquidity Ratios |

Current Ratio | | |

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| 107% | 112% | 117% | 133% |

Quick Ratio | | |

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| 75% | 80% | 84% | 102% |

Cash Ratio | | |

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| 54% | 60% | 64% | 84% |

Profitability Ratios |

Gross Margin | | |

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| 27% | 25% | 22% | 22% |

Operating Margin | | |

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| 1% | 1% | 2% | 4% |

Pre-Tax Margin | | |

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| 1% | 1% | 2% | 4% |

Profit Margin | | |

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| 0% | 0% | 1% | 3%...