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:

a. Based on your knowledge of each company, identify three major assets used by each company in generating revenue.
b. Compute the asset turnover ratio for each company.
c. Which company generates sales from total assets more efficiently?

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