This document provides information about Amazon and analyzes its financial performance. It begins with an introduction to Amazon's business model and competitors. It then presents a SWOT analysis and discusses Amazon's stock market performance and key financial statements from 2015-2013. The remainder of the document analyzes Amazon's financial ratios in areas such as liquidity, activity, profitability, and provides a reference section.

2. TEAM MEMBERS
MANOHAR REDDY.E
G.V.S.N.N.VARMA
MANOJ REDDY
KRISHNA KANTH
RAHUL KRISHNA

3. CONTENT
INTRODUCTION
COMPETITORS
SWOT ANALYSIS
STOCK MARKET
FINANCIAL STATEMENT
RATIO ANALYSIS

4. INTRODUCTION

5. Amazon.com, Inc., often referred to as simply Amazon, is an
American electronic commerce and cloud computing company with
headquarters in Washington. It is the largest Internet-based retailer in the
world by total sales and market capitalization.
Amazon.com started as an online bookstore, later diversify to sell other items
Amazon also sells certain low-end products like USB cables
under its in-house brand AmazonBasics.
Amazon has separate retail websites for the United States,
the United Kingdom and Ireland, France, Canada, Germany,
Italy, Spain, Netherlands, Australia, Brazil, Japan, China,
India and Mexico.
18th rank in fortune

6. COMPETITORS

7.  Amazon has several competitors in the electronics and general merchandise
segment, many of which are brick and motar rivals including Best Buy, Family
Dollar, RadioShack, Staples, Target, Walmart, Sears, Big Lots, Delia and
Systemacs.
 In the electronics and general merchandise segment online competition includes
Alibaba Group, LightInTheBox Holding Co., Overstock.com, PCM, Vipshop
Holdings, JD.com, Wayfair Inc. and Zulily.

8.  In the media segment, Amazon competes with auction site eBay (EBAY); media
game-changer Netflix (NFLX); Time Warner Cable (TWX); Apple (AAPL), with iTunes;
Google (GOOG) with its Play Store; and media producer Liberty Interactive (QVCB).
 In the other operating segment, Amazon competes with several of the world's
largest companies including CDW, PC Connection, Insight Enterprises, Google,
Oracle; salesforce.com, Accenture and Citrix Systems, among others

9. KEY PERSONS
Jeff Bezos
(Chairman, President and CEO)
Werner Vogels
(CTO)

10. SWOT ANALYSIS

11. Strength:
1st mover
advantage
strong customer
connect
Weakness:
Product flops.
Opportunities:
growth of E-
Commerce.
Global
Expansion.
Threats:
Government
regulations.
Local competition.
Brick and motars

12. STOCK MARKET

13. Stock market graph from 1995 to present

14. FINANCIAL
STATEMENTS
*Amounts In Millions of USD

15. Income Statement 2015 2014 2013
Revenue 107,006 88,988 74,452
cost of revenue 71,651 62,752 54,181
Gross profit 35,355 26,236 20,271
total operating expenses 33,122 26,056 20,157
Operating income 2,233 178 745
Other, net -256 -118 -
Income before tax 1,568 -111 506
Income after tax 618 -278 345
Equity in affiliates -22 37 -71
Net Income before extra. Items 596 -241 274
Net income 596 -241 274
Diluted weighted average shares 477 462 465
Diluted EPS excluding extraordinary items 1.25 -0.52 0.59
Diluted Nomalized EPS 1.25 -0.52 0.59

16. Balance Sheet 2015 2014 2013
Current assets 35,705 31,327 24,625
Fixed assets - - -
Total Assets 64,747 54,505 40,159
Current Liabilities 33,887 28,089 22,980
Long Term debts 8,227 12,489 5,181
Other liabilities 9,249 2,165 2,252

17. RATIO ANALYSIS
Is a method or process by which the relationship of items or groups of items in the
financial statements are computed, and presented. Is an important tool of financial
analysis. Ratios can be broadly classified into four groups namely:
 Liquidity ratios
 Capital structure/leverage ratios
 Profitability ratios
 Activity ratios

18. LIQUDITY RATIO
These ratios analyse the short-term financial position of a firm and indicate
the ability of the firm to meet its short-term commitments.
 Current ratio
 Quick Ratio/Liquid Ratio/Acid Test Ratio
 Absolute Liquid Ratio

19. Year Current
asset
Current
liabilities
Ratio
2015 35,705 33,887 1.0536
2014 31,327 28,089 1.1152
2013 24,625 22,980 1.0715
CURRENT RATIO:
Current Ratio Formula = Current Assets / Current Liabilities
The ideal ratio is 2. By above we can observe that the company current
ratio is poor.

20. Year Quick
Assets
Current
Liabilities
Ratios
2015 25,462 33,887 0.751
2014 23,028 28,089 0.819
2013 17,214 22,980 0.749
Quick Ratio/Liquid Ratio/Acid Test
Ratio:
Quick Ratio Formula = (Cash and Cash Equivalents + Accounts . .
Receivables)/Current Liabilities

21. Year Absolute
Liquid
Current
Liabilities
Ratio
2015 19,808 33,887 0.5845
2014 17,416 28,089 0.620
2013 12,447 22,980 0.541
Absolute Liquid Ratio:
Cash Ratio Formula = Cash & Cash equivalents / Current Liabilities

22. ACTIVTY / TURNOVER RATIO
These ratios are also called efficiency ratios / asset utilization ratios or
turnover ratios. These ratios show the relationship between sales and
various assets of a firm.
 Asset turnover ratio
 Working capital turnover ratio
 Inventory turnover ratio
 Debtors turnover ratio
 Creditors turnover ratio

23. Year Cost of
Goods Sold
Average
Stock
Ratio
2015 71,651 10,243 6.99
2014 62,752 8,299 7.56
2013 54,181 7,411 7.31
Stock/Inventory Turnover Ratio:
Stock turnover ratio=cost of goods sold/average inventory

24. Year Net Credit
Sales
Average
Receivable
Ratio
2015 107,006 5633 18.96
2014 88,988 5196 17.146
2013 74,452 4292 17.34
Year Days Debtor
turnover
ratio
2015 365 18.96 19.25
2014 365 17.14 21.28
2013 365 17.34 21.04
Debtors/Receivable Turnover Ratio:
Debtor velocity/average collection
period:

25. Year Current
purchases
Average
creditors
Ratio
2015 71,651 20,397 3.512
2014 62,752 16,459 3.812
2013 54,181 15,133 3.580
Year Days Creditor
turnover
ratio
2015 365 3.512 103.92
2014 365 3.812 95.75
2013 365 3.580 101.955
Creditor/Payable Turnover Ratio:
Creditor velocity/average collection period:

26. Year Sales Average
working
capital
Ratio
2015 1,07,006 1818 58.859
2014 88,988 3238 27.48
2013 74,452 1645 45.25
Working capital Turnover Ratio:

27. Year Sales Average
current
assets
Ratio
2015 107506 33,516 3.192
2014 88,988 27,976 3.180
2013 74,452 22,959 3.242
Current Asset Turnover Ratio:

28. PROFITABILITY
RATIO
These ratios measure the operating efficiency of the firm and its
to ensure adequate returns to its shareholders.
 Gross profit ratio
 Net profit ratio
 Operating ratio
 Return on capital employed
 Return on assets
 Earnings per share

29. Year Gross
profit
Sales Ratio
2015 35,355 1,07,006 33.04
2014 26,236 88,988 29.48
2013 20,157 74,452 27.07
Gross Profit Ratio:

30. Year Net profit Sales Ratio
2015 596 107006 0.55
2014 -241 88,988 -0.27
2013 274 74,452 0.36
Net profit Ratio:

31. Year Operating
expenses
Sales Ratio
2015 1,04,773 1,07,006 97.9
2014 88,810 88,988 99.79
2013 73,707 74,452 98.99
Operating expenses ratio:

32. Year Operating profit Sales Ratio
2015 2233 107006 2.086
2014 178 88988 0.200
2013 745 74452 1.0006
Operating profit ratio:

33. Year Cost of
goods
sold
Sales Ratio
2015 71,651 107,006 66.95
2014 88,810 88,988 70.51
2013 73,707 74,452 72.79
Cost of goods sold ratio:

34. Year Cost of goods
sold
Operating
expenses
Sales Ratio
2015 71,651 1,04,773 1,07,006 164.87
2014 62,752 88,810 88,988 170.31
2013 54,181 73,707 74,452 73.50
Operating Ratio:

35. Year Profit before
interest&tax
Average
capital
employed
Ratio
2015 1568 6475 24.21
2014 -111 54505
2013 506 40155 1.255
Return on capital employed:

36. Year Earnings
after tax
Equity Ratio
2015 618 13384 0.046
2014 -278 10741 -0.025
2013 345 9746 0.035
Return on share holder equity:

37. Year Earnings
before
interest&tax
Total assets Ratio
2015 1568 64747 0.0242
2014 -111 54505 -0.0020
2013 506 40159 0.0125
Return on Assets:

38. Year Earnings
after tax
No.of
equity
shares
EPS
2015 618 471 1.31
2014 -278 465 -0.39
2013 345 459 0.75
Earnings per share:
*there is no information about preference dividend

39. Reference
https://en.wikipedia.org/wiki/Amazon.com
https://www.google.com/finance?q=NASDAQ%3AAMZN&
stype=ii&ei=UPLoV_lVz5nQBKq8sJAI

40. THANK YOU