Question

Analyse and comparsion Amazon and Alibaba financial ratios

1. You have to analyze what the ratios tell us for example, > 1 means....; <1 means...; this would be good if....

2. You have to find relationships between numbers 3. You have to analyze trends over time

Reference

Profitability Ratios

Profit Margin: Alibaba 0.28 Amazon 0.055

Return on Assets: Alibaba 0.11 Amazon 0.066

Return on equity: Alibaba 0.19 Amazon 0.23

Leverage/Solvency Ratios

Total Debt Ratio Alibaba 0.34 Amazon 0.71

Debt Equity RatioAlibaba 0.51 Amazon 2.44

Equity Multiplier Alibaba 1.51 Amazon 2.48

Times Interest EarnedAlibaba 32.20 Amazon 14.68

Cash Coverage: Alibaba 36.16 Amazon 30.01

Turnover/Asset Utilization Ratios

Total Asset Turnover: Alibaba 0.39 Amazon 1.20

Inventory Turnover: Alibaba 3.35 Amazon 9.80

Day's Sales in inventory: Alibaba 109days Amazon 37days

Receivables Turnover: Alibaba 5.09 Amazon 15.73

Liquidity Ratios

Current Ratio: Alibaba 1.91 Amazon 1.05

Quick Ratio: Alibaba 1.57 Amazon 0.86

Cash Ratio: Alibaba 1.37 Amazon 0.33

Answer rating: 100% (QA)

Analysis of Amazon and Alibaba Financial Ratios This analysis compares Amazon and Alibabas financial ratios across profitability leveragesolvency turnoverasset utilization and liquidity categories Her... View the full answer