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Date Submitted: 07/13/2015 07:25 PM
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...