Fin 370 Week 2

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* In recent years the emergence of cyber-criminals and hackers has created identity theft issues for online shoppers. According to the Identity theft resource center, of over $2 million files maintained by over 50 organizations an astonishing 31% were able to be breached and PII (personally identifiable information) was able to be stolen. When the Securities and Exchange Commission brought this information to major online retailers it was a tough fact the leaders of internet shopping to face. Amazon is the world’s largest internet retailer and their database is home to 24 million customers and their personal information. In the beginning Amazon was reluctant to admit to the potential danger of identity theft. They realized that a company’s reputation means a great deal and can be severely damaged if action is not taken to identify current and future threats and take necessary precautions to solve this issue before it becomes a bigger problem. Amazon agreed to place within their quarterly SEC filings any known breaches of their databases or cyber-raids.

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* Amazons financial ratios are a great indicator as to what projections can be made about the company’s future success. When taking a look at the current ratio for Amazon, is shows the company’s liquidity, or if the company has the ability to pay its bills on time. When calculating current ration the equation would be current assets divided by current liabilities. Amazons current, debt and return on equity ratios looks like this:

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* Current Ratio

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* 2012 2011

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* 21296 17490

* 19002=1.12 14896=1.17

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* Debt Ratio

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* 32555 25278

* 32555=1% 25278=1%

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* Return on Equity

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* 39 631

* 10108=.3% 9712=6.4%

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* According to these tables Amazon seems to have been more successful in the years previous to 2012. When looking at the Current Ratio for the company it shows that though the company may still be...