Analyze and compare Amazon.com and Netflix

Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Netflix, Inc. (NFLX) provides digital streaming and DVD rentals in the United States. Amazon and Netflix compete in streaming and digital services; however, Amazon also sells many other products through the Internet. The sales and total assets (in millions) from recent financial statements were reported as follows for both companies:

Line Item Description	Amazon	Netflix
Total revenues (sales)	$280,522	$20,156
Total assets:
Beginning of year	162,648	25,974
End of year	225,248	33,976

a. Which of these assets are used by Netflix, Inc. to generate revenue? a. DVD content library b. Distribution centers c. Streaming content library d. Manufacturing plant 1. a and b 2. a and c 3. a and d 4. b and c

??

b. Compute the asset turnover ratio for each company. Round to two decimal places.

Line Item Description	Amazon	Netflix
Asset turnover ratio

c. Which company generates sales from total assets more efficiently?

AmazonNetflixBothNetflix

Check My Work3 more Check My Work uses remaining.