Analyze and compare Amazon.com to Target

Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Target Corporation (TGT) is one of the largest value-priced general merchandisers operating in the United States. Target sells through nearly 1,800 brick-and-mortar stores and through the Internet. Amazon and Target compete for customers across a wide variety of products, including media, general merchandise, apparel, and consumer electronics. Cost of goods sold and inventory information from a recent annual report are provided for both companies as follows (in millions):

		Amazon		Target
Cost of goods sold		$139,156		$53,299
Inventories:
Beginning of year		16,047		8,597
End of year		17,147		9,497

a. Calculate the inventory turnover for both companies. Round your answers to one decimal place.

		Inventory Turnover
Amazon.com
Target

b. Compute the days' sales in inventory for both companies. Assume a 365-day year. If required, round all computations to one decimal place and use in subsequent calculations. Round final answers to one decimal place.

		Days' Sales in Inventory
Amazon.com
Target