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Amazon: Financial Ratios and Inc.

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Amazon: Financial Ratios and Inc.
Financial Statement Analysis:
Amazon, Incorporated
Ashley B. Stark
Dickinson State University
October 18, 2012

Abstract
The following document provides the trend, common-size, and horizontal analysis of Amazon, Incorporated, for the fiscal years ending 2007, 2008, 2009, 2010, and 2011. Amazon, Incorporated is a healthy company that has reached mature growth with stable returns. Overall, Amazon, Incorporated is a reasonable investment based on its historical and industry analysis and trends.

Financial Statement Analysis: Amazon, Incorporated
Amazon.com began in 1995 as part of the retail “catalog and mail-order houses” industry to serve consumers, sellers, enterprises, and creators of content with a vision of providing the world’s largest selection of products and advertising (Amazon, Inc. 2008; 2009; 2010; 2011; 2012). As a platform to connect buyers and sellers as well as a seller in its own right, Amazon sells and/or facilitates the sale of a massive variety of products from books and movies to gifts, toys, electronics, apparel, computers, games, tools, sports equipment, home décor, furniture, jewelry, grocery items, office products, musical instruments, and much, much more (Amazon, Inc., 2008; 2009; 2010; 2011; 2012). Because their “businesses are rapidly evolving and intensely competitive” (Amazon, Inc., 2012, p. 5), Amazon competes against other online retailers, e-commerce providers, brick-and-mortar retailers, and digital content providers, but has positioned itself as a reliable, efficient, and cost-competitive entity with an excellent reputation and strong customer service (Amazon, Inc., 2008; 2009; 2010; 2011; 2012). Amazon, Incorporated has positioned itself as the “go-to” online retailer for just about everything with customer service that will ensure successful trades between its sellers and consumers (Amazon, Inc., 2008; 2009; 2010; 2011; 2012).
Trend Analysis Amazon, Incorporated has shown strong growth and improvement in the last five



References: Amazon, Inc. (2008). 2007 Annual report, Amazon, Inc. Retrieved from http://phx.corporate ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual Amazon, Inc. (2009). 2008 Annual report, Amazon, Inc. Retrieved from http://phx.corporate ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual Amazon, Inc. (2010). 2009 Annual report, Amazon, Inc. Retrieved from http://phx.corporate ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual Amazon, Inc. (2011). 2010 Annual report, Amazon, Inc. Retrieved from http://phx.corporate ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual Amazon, Inc. (2012). 2011 Annual report, Amazon, Inc. Retrieved from http://phx.corporate ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual Dun & Bradstreet. (2012). Catalog and mail-order houses. Key Business Ratios. Microsoft, Inc. (2012a). Amazon.com, industry 10-year summary. Retrieved from http://investing.money.msn.com/investments/key-ratios?symbol=AMZN&page= Microsoft, Inc. (2012c). Amazon.com, industry financial conditions ratios. Retrieved from http://investing.money.msn.com/investments/key-ratios?symbol=AMZN&page= Microsoft, Inc. (2012e). Amazon.com, industry price ratios. Retrieved from http://investing. Yahoo!, Inc. (2012, September 3). Amazon, Inc. + industry. Retrieved from http://finance.yahoo.com/q/in?s=AMZN+Industry

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