Goals for this assignment: Gather financial statement for amazon

Calculate financial ratios

Analyze financial conditions

Collect financial statements.

Financial statements are available on the internet through at the http://finance.yahoo.com website. At this website you will put the ticker symbol for your company in the symbol box and press go. At this point you will see a page that has financial information about amazon. On the left-hand side of the screen there will be a series of options that you can choose to get more information about your company. Under the heading financial statements you will see an option for income statement and balance sheet. You want annual statements. The financial statements for the past 3 years should be available. Calculate the financial ratios using formulas in the end of the Chapter 2 Slides

List of Formulas Formula Manufacturing Reti Service S&P 500 Ratio Profitability Ratios Gross Margin Gross Profit Sales Operating Income Sales Net Income Sales 45.3% 33.9% 56.4% 43.3% Operating Margin 21.2% 12.6% 28.2% 24.3% Net Profit Margin 10.1% 5.5% 12.3% 9.6% Liquidity Ratios Current Ratio 2.17 1.75 1.70 0.89 1.82 Current Assets Current Liabilities Current Assets-Inventory Current Liabilities Cash Current Liabilities 1.74 Quick Ratio 1.67 0.84 1.43 Cash Ratio 0.88 0.49 0.70 Efficiency and Working Capital Ratios Accounts Receivable Days Fixed Asset Turnover Accounts Receivable Average Daily Sales Sales Fixed Assets 57.66 11.52 61.54 64.36 6.37 5.94 10.17 8.38 Return on Assets Net Income+Interest Expense Book Value of Equity +Net Debt EBIT or EBITDA or Sales Source Standard and Poors' Compustat