Amazon.com, Inc. (AMZN) is the worlds leading Internet retailer of merchandise and media. Amazon also designs and
Question:
Amazon.com, Inc. (AMZN) is the world’s leading Internet retailer of merchandise and media. Amazon also designs and sells electronic products, such as e-readers. Netflix, Inc. (NFLX) is one of the world’s leading Internet television networks. Both companies compete in the digital media and streaming space. However, Netflix is more narrowly focused in the digital streaming business than is Amazon.
Sales and average book value of fixed assets information (in millions) are provided for Amazon and Netflix for a recent year as follows:
a. Compute the fixed asset turnover ratio for each company.
b. Which company is more efficient in generating sales from fixed assets?
c. Interpret your results.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9780357714041
16th Edition
Authors: Carl S. Warren, Jefferson P. Jones, William Tayler