collected information on Amazon and Netflix and computation for annual ROE of each company. Have a...

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collected information on Amazon and Netflix and computation for annual ROE of each company. Have a great day and good II know! Explanation: Amazon Years 2017-2020 data: Amazon (AMZN) Year Currency in USD. All numbers in thousands Total Revenue 2017 177,866,000 2019 280,522,000 Net Income Total Assets 3,033,000 131,310,000 Shareholder's Equity 27,709,000 2018 232,887,000 10,073,000 11,588,000 21,331,000 162,648,000 225,248,000 321,195,000 43,549,000 62,060,000 2020 386,064,000 93,404,000 Sources: https://finance.yahoo.com/quote/AMZN/balance- sheet?p=AMZN https://finance.yahoo.com/quote/AMZN/financials? p=AMZN Return on Equity (ROE) is computed as Net Income/Shareholder's Equity. ROE measures how effectively the company is utilizing it's equity in generating returns. In general, the higher the ROE means better performance. However, it is best to compare Part 2: Calculate ROES For each firm and year, calculate ROE and the three components of the DuPont Identity: profit margin, total asset turnover, and the equity multiplier. Post a summary of your results. Part 3: Analyze ROES What has happened to each firm's ROE between 2017 and 2020? Using the DuPont Decomposition, explain the factors that have led to the change in each firm's ROE. Part 4: Analyze Analysis If you were hired to analyze the profitability of NetFlix, would you select Amazon as a peer firm to use to evaluate NetFlix's ROE? Why or why not? Return on Equity (ROE) is computed as Net Income/ Shareholder's Equity. ROE measures how effectively the company is utilizing it's equity in generating returns. In general, the higher the ROE means better performance. However, it is best to compare ratios to industry averages in order to get a more accurate picture. Amazon's annual ROE for years 2017 to 2020 are computed as follows: 1 2 Amazon (AMZN) Year A B C Currency in USD. All numbers in thousands D E 3 Total Revenue 2017 177,866,000 2018 232,887,000 2019 2020 280,522,000 386,064,000 4 Net Income 3,033,000 5 Total Assets 131,310,000 6 Shareholder's Equity 27,709,000 10,073,000 162,648,000 43,549,000 11,588,000 225,248,000 21,331,000 321,195,000 62,060,000 93,404,000 7 8 Year 2017 9 Return on Equity (ROE) 10.95% 2018 23.13% 2019 18.67% 2020 22.84% 10 =B4/B6 =C4/C6 =D4/D6 =E4/E6 Netflix Years 2017-2020 data: Netflix (NFLX) Year Currency in USD. All numbers in thousands 2017 Total Revenue 11,692,713 2018 15,794,341 2019 2020 20,156,447 24,996,056 Net Income Total Assets 558,929 19,012,742 1,211,242 1,866,916 2,761,395 Shareholder's Equity 3,581,956 25,974,400 5,238,765 33,975,712 7,582,157 39,280,359 11,065,240 Sources: https://finance.yahoo.com/quote/NFLX/balance- 4 Net Income 5 Total Assets 6 Shareholder's Equity 3,033,000 10,073,000 131,310,000 162,648,000 27,709,000 43,549,000 11,588,000 21,331,000 225,248,000 321,195,000 62,060,000 93,404,000 7 8 Year 2017 2018 2019 2020 9 Return on Equity (ROE) 10.95% 23.13% 18.67% 22.84% 10 =B4/B6 =C4/C6 =D4/D6 =E4/E6 Netflix Years 2017-2020 data: Netflix (NFLX) Year Total Revenue Net Income Currency in USD. All numbers in thousands 2017 11,692,713 2018 15,794,341 2019 20,156,447 2020 24,996,056 Total Assets 558,929 19,012,742 Shareholder's Equity 3,581,956 1,211,242 25,974,400 5,238,765 1,866,916 2,761,395 33,975,712 39,280,359 7,582,157 11,065,240 Sources: https://finance.yahoo.com/quote/NFLX/balance- sheet?p=NFLX https://finance.yahoo.com/quote/NFLX/financials? p=NFLX Netflix's annual ROE for years 2017 to 2020 are computed as follows: 12 Netflix (NFLX) A B C Currency in USD. All numbers in thousands D E 13 Year 2017 2018 14 Total Revenue 11,692,713 15,794,341 15 Net Income 558,929 16 Total Assets 19,012,742 17 Shareholder's Equity 3,581,956 1,211,242 25,974,400 5,238,765 2019 20,156,447 1,866,916 2020 24,996,056 2,761,395 33,975,712 39,280,359 7,582,157 11,065,240 18 19 Year 20 Return on Equity (ROE) 21 2017 15.60% =B15/B17 2018 23.12% =C15/C17 2019 24.62% =D15/D17 2020 24.96% =E15/E17 collected information on Amazon and Netflix and computation for annual ROE of each company. Have a great day and good II know! Explanation: Amazon Years 2017-2020 data: Amazon (AMZN) Year Currency in USD. All numbers in thousands Total Revenue 2017 177,866,000 2019 280,522,000 Net Income Total Assets 3,033,000 131,310,000 Shareholder's Equity 27,709,000 2018 232,887,000 10,073,000 11,588,000 21,331,000 162,648,000 225,248,000 321,195,000 43,549,000 62,060,000 2020 386,064,000 93,404,000 Sources: https://finance.yahoo.com/quote/AMZN/balance- sheet?p=AMZN https://finance.yahoo.com/quote/AMZN/financials? p=AMZN Return on Equity (ROE) is computed as Net Income/Shareholder's Equity. ROE measures how effectively the company is utilizing it's equity in generating returns. In general, the higher the ROE means better performance. However, it is best to compare Part 2: Calculate ROES For each firm and year, calculate ROE and the three components of the DuPont Identity: profit margin, total asset turnover, and the equity multiplier. Post a summary of your results. Part 3: Analyze ROES What has happened to each firm's ROE between 2017 and 2020? Using the DuPont Decomposition, explain the factors that have led to the change in each firm's ROE. Part 4: Analyze Analysis If you were hired to analyze the profitability of NetFlix, would you select Amazon as a peer firm to use to evaluate NetFlix's ROE? Why or why not? Return on Equity (ROE) is computed as Net Income/ Shareholder's Equity. ROE measures how effectively the company is utilizing it's equity in generating returns. In general, the higher the ROE means better performance. However, it is best to compare ratios to industry averages in order to get a more accurate picture. Amazon's annual ROE for years 2017 to 2020 are computed as follows: 1 2 Amazon (AMZN) Year A B C Currency in USD. All numbers in thousands D E 3 Total Revenue 2017 177,866,000 2018 232,887,000 2019 2020 280,522,000 386,064,000 4 Net Income 3,033,000 5 Total Assets 131,310,000 6 Shareholder's Equity 27,709,000 10,073,000 162,648,000 43,549,000 11,588,000 225,248,000 21,331,000 321,195,000 62,060,000 93,404,000 7 8 Year 2017 9 Return on Equity (ROE) 10.95% 2018 23.13% 2019 18.67% 2020 22.84% 10 =B4/B6 =C4/C6 =D4/D6 =E4/E6 Netflix Years 2017-2020 data: Netflix (NFLX) Year Currency in USD. All numbers in thousands 2017 Total Revenue 11,692,713 2018 15,794,341 2019 2020 20,156,447 24,996,056 Net Income Total Assets 558,929 19,012,742 1,211,242 1,866,916 2,761,395 Shareholder's Equity 3,581,956 25,974,400 5,238,765 33,975,712 7,582,157 39,280,359 11,065,240 Sources: https://finance.yahoo.com/quote/NFLX/balance- 4 Net Income 5 Total Assets 6 Shareholder's Equity 3,033,000 10,073,000 131,310,000 162,648,000 27,709,000 43,549,000 11,588,000 21,331,000 225,248,000 321,195,000 62,060,000 93,404,000 7 8 Year 2017 2018 2019 2020 9 Return on Equity (ROE) 10.95% 23.13% 18.67% 22.84% 10 =B4/B6 =C4/C6 =D4/D6 =E4/E6 Netflix Years 2017-2020 data: Netflix (NFLX) Year Total Revenue Net Income Currency in USD. All numbers in thousands 2017 11,692,713 2018 15,794,341 2019 20,156,447 2020 24,996,056 Total Assets 558,929 19,012,742 Shareholder's Equity 3,581,956 1,211,242 25,974,400 5,238,765 1,866,916 2,761,395 33,975,712 39,280,359 7,582,157 11,065,240 Sources: https://finance.yahoo.com/quote/NFLX/balance- sheet?p=NFLX https://finance.yahoo.com/quote/NFLX/financials? p=NFLX Netflix's annual ROE for years 2017 to 2020 are computed as follows: 12 Netflix (NFLX) A B C Currency in USD. All numbers in thousands D E 13 Year 2017 2018 14 Total Revenue 11,692,713 15,794,341 15 Net Income 558,929 16 Total Assets 19,012,742 17 Shareholder's Equity 3,581,956 1,211,242 25,974,400 5,238,765 2019 20,156,447 1,866,916 2020 24,996,056 2,761,395 33,975,712 39,280,359 7,582,157 11,065,240 18 19 Year 20 Return on Equity (ROE) 21 2017 15.60% =B15/B17 2018 23.12% =C15/C17 2019 24.62% =D15/D17 2020 24.96% =E15/E17