Fin 501 Slp 1

Trident University

Bruce Herrington Jr.

FIN 501 Strategic Corporate Finance

Module 1 SLP

Dr. John Halstead

The purpose of this paper is to discuss conducting a financial ratio analysis. To complete this assignment I will select a publicly traded company that has paid a dividend for at least the last three years. I located a company on yahoo finance with ration numbers included. I calculated the below ratios from the past three years and compared them to the appropriate benchmark.

1. Liquidity ratios:Current. Quick 

2. Asset Management ratios: Inventory turnover, Total assets turnover, Fixed assets turnover, Days sales outstanding

3. Debt Management ratios: EBITDA coverage, Times-interest-earned,Total debt to total assets

4. Profitability ratios: Return on common equity, Return on total assets, Basic earning power, Profit margin on sales

5. Market Value ratios: Market/book, Price/earnings, Price/cash flow

Amazon.: Stock Analysis

Below is a chart of Amazon (NasdaqGS: AMZN) cash dividends for the last 3 decades.

Year | Cash Dividends |

2014 | $ 1.84571 |

2013 | $ 1.68570 |

2012 | $ 0.75714 |

1995 | $ 0.01716 |

1994 | $ 0.01716 |

1993 | $ 0.01716 |

1992 | $ 0.01716 |

1991 | $ 0.01716 |

1990 | $ 0.01608 |

1989 | $ 0.01464 |

1988 | 0.01215 |

1987 | $ 0.00714 |

Source: Yahoo! Finance

Amazon’s stock prices:

September 27, 2014 $100.32 (Yahoo! Finance)

September 28, 2013 $67.15 (Yahoo! Finance)

September 29, 2012 $90.63 (Yahoo! Finance)

Based on Yahoo! Finance, Amazon together with Ebay, Netflix, and Time Warner Cable belongs to the Internet and Catalog retail industry. Industry data was sourced from Yahoo!’s industry center. Only a few of the industry statistics pertaining to the ratios are available.

Amazon’s interest income is much larger than the company’s interest expense resulting to a positive other income. Also, in computing for the...