Could you work on this Course Project and return it to me by tomorrow afternoon (4PM Central Time)?

It is in the attachment.

I would like to compare Amazon and Ebay with the most current (2014) Financial Data.

The textbook we use is Corporate Finance by Jonathan Berk and Peter DeMarzo. I would prefer you include it in the reference.

Please use the DuPont Analysis to analyze the company.

Let me know if you can.

First Course Project The purpose of this project is to help you develop skills not only in performing the calculations behind financial analysis but interpreting the numbers as well. You are to pick a company. You should pick one either from the industry in which you are currently working or an industry in which you are interested. You could also pick a division of a company. It is imperative to use that sufficient data about your company and that it is available. One way to do this is to pick a publicly held company. If you pick a privately held company or a division of a company, make sure that the data necessary to do a significant financial analysis is available. If you use data that is not publicly available, be sure to talk to your manager and to make absolutely sure that revealing that data is not a problem. You will also need to find a standard against which to compare your findings. This could be a different company in the same industry. This could also be the same company at a different time. Additionally, average or benchmark numbers are available for several industries. If you decide to use a different company in the same industry or the same company at a different time, make sure that there are enough differences between the two to make an analysis meaningful. After you have selected a company, put yourself in the place of an analyst who has been asked to perform an analysis of the company and provide a recommendation to management. Use ratio analysis, common size analysis, or other techniques to determine areas in which the company is doing well as well as areas that management should look at. Then, present your analysis and recommendations in the form of a paper. A good place to start would be to perform a complete DuPont analysis of the company and compare it to the standard. The DuPont analysis might provide guidance as to what particular areas of the company should be examined next and what ratios should be calculated. If the DuPont analysis does not reveal anything useful, you might wish to calculate several of the ratios that are available to you. Deliverable The completed paper should be about 1,000 words long. In the paper, you do not have to explain the ratios in depth. You may assume that the reader has a basic understanding of finance and knows what ratio analysis is, although he or she might not be able to list all the ratios and how to calculate them from memory. The reader is not going to want a lot of background about financial analysis. He or she really wants information that he or she can apply to the given situation, which is the company that you have selected. If you like, you can write the paper in the form of a memo to management. You do not have to cite your source for how to calculate the ratios. You do need to provide a reference to where you got that data not only for your subject company but for the other company or standard to which you compared your company. The spirit of this assignment is for you to calculate and interpret the results. The purpose is not for you to find calculations and interpretations that have been done by someone else. The paper is expected to conform to the standards for graduate school writing. The purpose of your analysis is internal evaluation. Refrain from using stock market valuation ratios. When you have completed the project, place it in one Word document and place that document in the appropriate dropbox. Surname: 1 Name Course Tutor Date Amazon and Ebay ratio analysis The analysis involves comparison ratio analysis for Amazon and EBay Corporation. EBay is regarded as one of the pioneers of online properties that incorporates several successful and significant internet brands of approximately one hundred million users and is the marketplace that hosts millions of wholesale and retail transactions. The corporation headquarter is based in California, San Jose with Skype and PayPal their flagship products. On the other hand, Amazon Inc. refers to cloud computing and electronic commerce company based in Seattle Washington and is regarded as among the largest and significant Internet-based retailer consisting of an online bookstore and production of consumer electronics. Ratio analysis is a subunit of financial statement analysis used in obtaining the quick indication of an enterprise performance in several significant areas. The ratio is classified into short-term profitability, asset management, market value, and debt management. Ratio computation facilitates firms comparison based on financial performance based on available financial statement data (Jonathan and Peter). However, the analysis is based on accounting information and effectiveness is subjected to financial statement distortion attributed to historical inflation and cost accounting. The financial analysis will involve a five-year period from 2010 to 2014 bases on the corporation audited financial statement. Liquidity or short-term solvency ratio Surname: 2 These are the ratio that measures the organization ability to meet their short-term or daily financial obligation, in other words, this ability of the firm to avoid sinking into short-run financial distress. There is two most common solvency ratio namely quick and current ratio. Current ratio This measures = total current asset/total current liabilities Quick ratio This recognizes the ability of the firm to meet its obligation without using inventories. (Total current asset inventory) /total current liabilities Current ratio Quick ratio Amazon 1.115276443 0.819822706 EBay 1.318928311 1.318928311 Analysis According to current ratio, the EBay Corporation outperforms Amazon reporting 1.32 compared to 1.1. A similar trend is replicated on the quick ratio with Amazon reporting 0.81 and eBay reporting 1.31. This analysis indicates that Amazon corporation is struggling on liquidity compared to EBay Corporation. Debt management ratio This refers to the financial ratio that measures financial advantage or ability to evade long run financial distress (Jonathan and Peter). This ratio is also referred to as "long-term solvency ratio" and debt is referred to as financial leverage since it improves stockholders return in the long run Debt ratio= total debt/ total assets Debt to equity to equity ratio=total debts/total owners' equity Equity multiplier=total assets/total owners' equity Amazon EBay Surname: Debt ratio Debt to equity Equity multiplier 0.802935511 4.074480961 5.074480961 3 0.43002796 0.754472026 1.754472026 Analysis According to debt ratio, Amazon outperforms the eBay reporting 0.81 compared to 0.43 and a similar trend is replicated in the debt to equity ratio and equity multiplier. On debt to equity ratio, the Amazon corporation reports 4.07 compared to eBay's 0.75 similarly to equity multiplier where Amazon and eBay report 5.07 and 1.75 respectively. This indication that Amazon is over relying on debt financing compared with eBay meaning that the latter is financially sound. Profitability ratios This ratio measures firm's success in income generation, which reflects a combination of debt and asset management. Profit margin=net income/sales Return on assets (ROA) =Net income/total assets Return on equity (ROE) = net income/ total owners' equity Profit margin Return on assets (ROA Return on equity (ROE) Analysis Amazon 0.729653244 0.39262453 1.992365702 EBay 1.711210724 2.465773236 4.326130165 The impact of debt financing is cleared reflected in the profitability where the eBay outperforms the Amazon on all the ratios. According to profit margin, Amazon reports 0.72 and eBay 1.711 and according to return on asset and return on Amazon equity reports 0.39 and 1.99 compared with eBay's 2.47 and 4.33. This indication that eBay is more profitable than the Amazon is. Asset management ratios Surname: 4 These ratios determine the corporation success in the utilization of assets in sales generation. The major asset management ratios are day's receivables and receivables turnover and these ratios assess the firm's management concerning account receivables as guided by credit policies. Receivables turnover=sales/account receivable's Days receivable's=365/ receivable turnover Day's inventory and inventory turnover This measures the organization ability to manage the inventory. Inventory turnover=COGS/inventory Days inventory= 365/inventory turnover Fixed asset turnover measures the productivity of fixed asset managements in sales generation. Fixed asset turnover=saleset fixed assets Total assets turnover This refers to firm ability utilize its assets in sales generation. Total assets turnover=sales/total assets Receivables turnover Days receivables Inventory turnover Days inventory Fixed asset turnover Total assets turnover Analysis Amazon 5.226122594 69.84145385 2.490902518 146.5332334 1.72 0.538097422 EBay 0.88 413 0 0 4.14 0.728 According to this ratio, especially the receivable turnover and days the Amazon appears to out form the eBay reporting a 5.22 on receivable turnover and 69 days receivable compared to Surname: 5 0.88 and 413 days. On the inventory turnover and days inventory, the Amazon reports 2.49 and 146 ways while the ratio is irrelevant to eBay since it lacks inventory. However, the eBay outperforms Amazon on fixed asset and total asset turnover reporting 4.14 and 0.73 compared to 1.72 and 0.54. DuPont analysis This entails measurement concerning measuring of the gross book value of asset rather than using a net value that produces an increased ROE and, in other words, it is referred to as DuPont identity that is determined by their critical ingredient namely equity multiplier, asset turnover, and profit margin. ROE= (profitability margin)*(asset turnover)*(equity multiplier) = (net sales/assets)*(sales/assets)*(asset/equity) = (net profit/equity) Amazon= 0.73*5.07*0.53=0.02 EBay=1.71*1.75*0.78=2.22 Recommendation This is an indication that the Amazon corporation is struggling as far as liquidity and profitability are concerned, and, therefore, this should be a major concern to address. The management should, therefore, concentrate on the liquidity ratio because if the trend continues the corporation result into inability caters for their daily obligation. The other area of concern is the profitability ratio especially the profit margin. On the other hand, eBay is struggling on asset management. Works cited Jonathan B and Peter, D. Corporate Finance. Surname: 6 Surname: 1 Name Course Tutor Date Amazon and Ebay ratio analysis The analysis involves comparison ratio analysis for Amazon and EBay Corporation. EBay is regarded as one of the pioneers of online properties that incorporates several successful and significant internet brands of approximately one hundred million users and is the marketplace that hosts millions of wholesale and retail transactions. The corporation headquarter is based in California, San Jose with Skype and PayPal their flagship products. On the other hand, Amazon Inc. refers to cloud computing and electronic commerce company based in Seattle Washington and is regarded as among the largest and significant Internet-based retailer consisting of an online bookstore and production of consumer electronics. Ratio analysis is a subunit of financial statement analysis used in obtaining the quick indication of an enterprise performance in several significant areas. The ratio is classified into short-term profitability, asset management, market value, and debt management. Ratio computation facilitates firms comparison based on financial performance based on available financial statement data (Jonathan and Peter). However, the analysis is based on accounting information and effectiveness is subjected to financial statement distortion attributed to historical inflation and cost accounting. The financial analysis will involve a five-year period from 2010 to 2014 bases on the corporation audited financial statement. Liquidity or short-term solvency ratio Surname: 2 These are the ratio that measures the organization ability to meet their short-term or daily financial obligation, in other words, this ability of the firm to avoid sinking into short-run financial distress. There is two most common solvency ratio namely quick and current ratio. Current ratio This measures = total current asset/total current liabilities Quick ratio This recognizes the ability of the firm to meet its obligation without using inventories. (Total current asset inventory) /total current liabilities Current ratio Quick ratio Amazon 1.115276443 0.819822706 EBay 1.318928311 1.318928311 Analysis According to current ratio, the EBay Corporation outperforms Amazon reporting 1.32 compared to 1.1. A similar trend is replicated on the quick ratio with Amazon reporting 0.81 and eBay reporting 1.31. This analysis indicates that Amazon corporation is struggling on liquidity compared to EBay Corporation. Debt management ratio This refers to the financial ratio that measures financial advantage or ability to evade long run financial distress (Jonathan and Peter). This ratio is also referred to as "long-term solvency ratio" and debt is referred to as financial leverage since it improves stockholders return in the long run Debt ratio= total debt/ total assets Debt to equity to equity ratio=total debts/total owners' equity Equity multiplier=total assets/total owners' equity Amazon EBay Surname: Debt ratio Debt to equity Equity multiplier 0.802935511 4.074480961 5.074480961 3 0.43002796 0.754472026 1.754472026 Analysis According to debt ratio, Amazon outperforms the eBay reporting 0.81 compared to 0.43 and a similar trend is replicated in the debt to equity ratio and equity multiplier. On debt to equity ratio, the Amazon corporation reports 4.07 compared to eBay's 0.75 similarly to equity multiplier where Amazon and eBay report 5.07 and 1.75 respectively. This indication that Amazon is over relying on debt financing compared with eBay meaning that the latter is financially sound. Profitability ratios This ratio measures firm's success in income generation, which reflects a combination of debt and asset management. Profit margin=net income/sales Return on assets (ROA) =Net income/total assets Return on equity (ROE) = net income/ total owners' equity Profit margin Return on assets (ROA Return on equity (ROE) Analysis Amazon 0.729653244 0.39262453 1.992365702 EBay 1.711210724 2.465773236 4.326130165 The impact of debt financing is cleared reflected in the profitability where the eBay outperforms the Amazon on all the ratios. According to profit margin, Amazon reports 0.72 and eBay 1.711 and according to return on asset and return on Amazon equity reports 0.39 and 1.99 compared with eBay's 2.47 and 4.33. This indication that eBay is more profitable than the Amazon is. Asset management ratios Surname: 4 These ratios determine the corporation success in the utilization of assets in sales generation. The major asset management ratios are day's receivables and receivables turnover and these ratios assess the firm's management concerning account receivables as guided by credit policies. Receivables turnover=sales/account receivable's Days receivable's=365/ receivable turnover Day's inventory and inventory turnover This measures the organization ability to manage the inventory. Inventory turnover=COGS/inventory Days inventory= 365/inventory turnover Fixed asset turnover measures the productivity of fixed asset managements in sales generation. Fixed asset turnover=saleset fixed assets Total assets turnover This refers to firm ability utilize its assets in sales generation. Total assets turnover=sales/total assets Receivables turnover Days receivables Inventory turnover Days inventory Fixed asset turnover Total assets turnover Analysis Amazon 5.226122594 69.84145385 2.490902518 146.5332334 1.72 0.538097422 EBay 0.88 413 0 0 4.14 0.728 According to this ratio, especially the receivable turnover and days the Amazon appears to out form the eBay reporting a 5.22 on receivable turnover and 69 days receivable compared to Surname: 5 0.88 and 413 days. On the inventory turnover and days inventory, the Amazon reports 2.49 and 146 ways while the ratio is irrelevant to eBay since it lacks inventory. However, the eBay outperforms Amazon on fixed asset and total asset turnover reporting 4.14 and 0.73 compared to 1.72 and 0.54. DuPont analysis This entails measurement concerning measuring of the gross book value of asset rather than using a net value that produces an increased ROE and, in other words, it is referred to as DuPont identity that is determined by their critical ingredient namely equity multiplier, asset turnover, and profit margin. ROE= (profitability margin)*(asset turnover)*(equity multiplier) = (net sales/assets)*(sales/assets)*(asset/equity) = (net profit/equity) Amazon= 0.73*5.07*0.53=0.02 EBay=1.71*1.75*0.78=2.22 Recommendation This is an indication that the Amazon corporation is struggling as far as liquidity and profitability are concerned, and, therefore, this should be a major concern to address. The management should, therefore, concentrate on the liquidity ratio because if the trend continues the corporation result into inability caters for their daily obligation. The other area of concern is the profitability ratio especially the profit margin. On the other hand, eBay is struggling on asset management. Works cited Jonathan B and Peter, D. Corporate Finance. Surname: https://finance.yahoo.com/q/is?s=ebay https://finance.yahoo.com/q/is?s=AMZN Appendix Column1 Total current asset Amazon Ebay 31327 23531 6 Surname: Total current liability Inventory total liability Total asset Equity Net income Sales Account receivables cost of sales fixed asset 28089 8299 43764 54505 10741 214 29329 5612 20672 16967 17841 0 17841 41488 23647 1023 11 435 12948 4511 2760 7 Surname: 1 Name Course Tutor Date Amazon and Ebay ratio analysis The analysis involves comparison ratio analysis for Amazon and EBay Corporation. EBay is regarded as one of the pioneers of online properties that incorporates several successful and significant internet brands of approximately one hundred million users and is the marketplace that hosts millions of wholesale and retail transactions. The corporation headquarter is based in California, San Jose with Skype and PayPal their flagship products. On the other hand, Amazon Inc. refers to cloud computing and electronic commerce company based in Seattle Washington and is regarded as among the largest and significant Internet-based retailer consisting of an online bookstore and production of consumer electronics. Ratio analysis is a subunit of financial statement analysis used in obtaining the quick indication of an enterprise performance in several significant areas. The ratio is classified into short-term profitability, asset management, market value, and debt management. Ratio computation facilitates firms comparison based on financial performance based on available financial statement data (Jonathan and Peter). However, the analysis is based on accounting information and effectiveness is subjected to financial statement distortion attributed to historical inflation and cost accounting. The financial analysis will involve a five-year period from 2010 to 2014 bases on the corporation audited financial statement. Liquidity or short-term solvency ratio Surname: 2 These are the ratio that measures the organization ability to meet their short-term or daily financial obligation, in other words, this ability of the firm to avoid sinking into short-run financial distress. There is two most common solvency ratio namely quick and current ratio. Current ratio This measures = total current asset/total current liabilities Quick ratio This recognizes the ability of the firm to meet its obligation without using inventories. (Total current asset inventory) /total current liabilities Current ratio Quick ratio Amazon 1.115276443 0.819822706 EBay 1.318928311 1.318928311 Analysis According to current ratio, the EBay Corporation outperforms Amazon reporting 1.32 compared to 1.1. A similar trend is replicated on the quick ratio with Amazon reporting 0.81 and eBay reporting 1.31. This analysis indicates that Amazon corporation is struggling on liquidity compared to EBay Corporation. Debt management ratio This refers to the financial ratio that measures financial advantage or ability to evade long run financial distress (Jonathan and Peter). This ratio is also referred to as "long-term solvency ratio" and debt is referred to as financial leverage since it improves stockholders return in the long run Debt ratio= total debt/ total assets Debt to equity to equity ratio=total debts/total owners' equity Equity multiplier=total assets/total owners' equity Amazon EBay Surname: Debt ratio Debt to equity Equity multiplier 0.802935511 4.074480961 5.074480961 3 0.43002796 0.754472026 1.754472026 Analysis According to debt ratio, Amazon outperforms the eBay reporting 0.81 compared to 0.43 and a similar trend is replicated in the debt to equity ratio and equity multiplier. On debt to equity ratio, the Amazon corporation reports 4.07 compared to eBay's 0.75 similarly to equity multiplier where Amazon and eBay report 5.07 and 1.75 respectively. This indication that Amazon is over relying on debt financing compared with eBay meaning that the latter is financially sound. Profitability ratios This ratio measures firm's success in income generation, which reflects a combination of debt and asset management. Profit margin=net income/sales Return on assets (ROA) =Net income/total assets Return on equity (ROE) = net income/ total owners' equity Profit margin Return on assets (ROA Return on equity (ROE) Analysis Amazon 0.729653244 0.39262453 1.992365702 EBay 1.711210724 2.465773236 4.326130165 The impact of debt financing is cleared reflected in the profitability where the eBay outperforms the Amazon on all the ratios. According to profit margin, Amazon reports 0.72 and eBay 1.711 and according to return on asset and return on Amazon equity reports 0.39 and 1.99 compared with eBay's 2.47 and 4.33. This indication that eBay is more profitable than the Amazon is. Asset management ratios Surname: 4 These ratios determine the corporation success in the utilization of assets in sales generation. The major asset management ratios are day's receivables and receivables turnover and these ratios assess the firm's management concerning account receivables as guided by credit policies. Receivables turnover=sales/account receivable's Days receivable's=365/ receivable turnover Day's inventory and inventory turnover This measures the organization ability to manage the inventory. Inventory turnover=COGS/inventory Days inventory= 365/inventory turnover Fixed asset turnover measures the productivity of fixed asset managements in sales generation. Fixed asset turnover=saleset fixed assets Total assets turnover This refers to firm ability utilize its assets in sales generation. Total assets turnover=sales/total assets Receivables turnover Days receivables Inventory turnover Days inventory Fixed asset turnover Total assets turnover Analysis Amazon 5.226122594 69.84145385 2.490902518 146.5332334 1.72 0.538097422 EBay 0.88 413 0 0 4.14 0.728 According to this ratio, especially the receivable turnover and days the Amazon appears to out form the eBay reporting a 5.22 on receivable turnover and 69 days receivable compared to Surname: 5 0.88 and 413 days. On the inventory turnover and days inventory, the Amazon reports 2.49 and 146 ways while the ratio is irrelevant to eBay since it lacks inventory. However, the eBay outperforms Amazon on fixed asset and total asset turnover reporting 4.14 and 0.73 compared to 1.72 and 0.54. DuPont analysis This entails measurement concerning measuring of the gross book value of asset rather than using a net value that produces an increased ROE and, in other words, it is referred to as DuPont identity that is determined by their critical ingredient namely equity multiplier, asset turnover, and profit margin. ROE= (profitability margin)*(asset turnover)*(equity multiplier) = (net sales/assets)*(sales/assets)*(asset/equity) = (net profit/equity) Amazon= 0.73*5.07*0.53=0.02 EBay=1.71*1.75*0.78=2.22 Recommendation This is an indication that the Amazon corporation is struggling as far as liquidity and profitability are concerned, and, therefore, this should be a major concern to address. The management should, therefore, concentrate on the liquidity ratio because if the trend continues the corporation result into inability caters for their daily obligation. The other area of concern is the profitability ratio especially the profit margin. On the other hand, eBay is struggling on asset management. Works cited Jonathan B and Peter, D. Corporate Finance. Surname: 6 Surname: 1 Name Course Tutor Date Amazon and Ebay ratio analysis The analysis involves comparison ratio analysis for Amazon and EBay Corporation. EBay is regarded as one of the pioneers of online properties that incorporates several successful and significant internet brands of approximately one hundred million users and is the marketplace that hosts millions of wholesale and retail transactions. The corporation headquarter is based in California, San Jose with Skype and PayPal their flagship products. On the other hand, Amazon Inc. refers to cloud computing and electronic commerce company based in Seattle Washington and is regarded as among the largest and significant Internet-based retailer consisting of an online bookstore and production of consumer electronics. Ratio analysis is a subunit of financial statement analysis used in obtaining the quick indication of an enterprise performance in several significant areas. The ratio is classified into short-term profitability, asset management, market value, and debt management. Ratio computation facilitates firms comparison based on financial performance based on available financial statement data (Jonathan and Peter). However, the analysis is based on accounting information and effectiveness is subjected to financial statement distortion attributed to historical inflation and cost accounting. The financial analysis will involve a five-year period from 2010 to 2014 bases on the corporation audited financial statement. Liquidity or short-term solvency ratio Surname: 2 These are the ratio that measures the organization ability to meet their short-term or daily financial obligation, in other words, this ability of the firm to avoid sinking into short-run financial distress. There is two most common solvency ratio namely quick and current ratio. Current ratio This measures = total current asset/total current liabilities Quick ratio This recognizes the ability of the firm to meet its obligation without using inventories. (Total current asset inventory) /total current liabilities Current ratio Quick ratio Amazon 1.115276443 0.819822706 EBay 1.318928311 1.318928311 Analysis According to current ratio, the EBay Corporation outperforms Amazon reporting 1.32 compared to 1.1. A similar trend is replicated on the quick ratio with Amazon reporting 0.81 and eBay reporting 1.31. This analysis indicates that Amazon corporation is struggling on liquidity compared to EBay Corporation. Debt management ratio This refers to the financial ratio that measures financial advantage or ability to evade long run financial distress (Jonathan and Peter). This ratio is also referred to as "long-term solvency ratio" and debt is referred to as financial leverage since it improves stockholders return in the long run Debt ratio= total debt/ total assets Debt to equity to equity ratio=total debts/total owners' equity Equity multiplier=total assets/total owners' equity Amazon EBay Surname: Debt ratio Debt to equity Equity multiplier 0.802935511 4.074480961 5.074480961 3 0.43002796 0.754472026 1.754472026 Analysis According to debt ratio, Amazon outperforms the eBay reporting 0.81 compared to 0.43 and a similar trend is replicated in the debt to equity ratio and equity multiplier. On debt to equity ratio, the Amazon corporation reports 4.07 compared to eBay's 0.75 similarly to equity multiplier where Amazon and eBay report 5.07 and 1.75 respectively. This indication that Amazon is over relying on debt financing compared with eBay meaning that the latter is financially sound. Profitability ratios This ratio measures firm's success in income generation, which reflects a combination of debt and asset management. Profit margin=net income/sales Return on assets (ROA) =Net income/total assets Return on equity (ROE) = net income/ total owners' equity Profit margin Return on assets (ROA Return on equity (ROE) Analysis Amazon 0.729653244 0.39262453 1.992365702 EBay 1.711210724 2.465773236 4.326130165 The impact of debt financing is cleared reflected in the profitability where the eBay outperforms the Amazon on all the ratios. According to profit margin, Amazon reports 0.72 and eBay 1.711 and according to return on asset and return on Amazon equity reports 0.39 and 1.99 compared with eBay's 2.47 and 4.33. This indication that eBay is more profitable than the Amazon is. Asset management ratios Surname: 4 These ratios determine the corporation success in the utilization of assets in sales generation. The major asset management ratios are day's receivables and receivables turnover and these ratios assess the firm's management concerning account receivables as guided by credit policies. Receivables turnover=sales/account receivable's Days receivable's=365/ receivable turnover Day's inventory and inventory turnover This measures the organization ability to manage the inventory. Inventory turnover=COGS/inventory Days inventory= 365/inventory turnover Fixed asset turnover measures the productivity of fixed asset managements in sales generation. Fixed asset turnover=saleset fixed assets Total assets turnover This refers to firm ability utilize its assets in sales generation. Total assets turnover=sales/total assets Receivables turnover Days receivables Inventory turnover Days inventory Fixed asset turnover Total assets turnover Analysis Amazon 5.226122594 69.84145385 2.490902518 146.5332334 1.72 0.538097422 EBay 0.88 413 0 0 4.14 0.728 According to this ratio, especially the receivable turnover and days the Amazon appears to out form the eBay reporting a 5.22 on receivable turnover and 69 days receivable compared to Surname: 5 0.88 and 413 days. On the inventory turnover and days inventory, the Amazon reports 2.49 and 146 ways while the ratio is irrelevant to eBay since it lacks inventory. However, the eBay outperforms Amazon on fixed asset and total asset turnover reporting 4.14 and 0.73 compared to 1.72 and 0.54. DuPont analysis This entails measurement concerning measuring of the gross book value of asset rather than using a net value that produces an increased ROE and, in other words, it is referred to as DuPont identity that is determined by their critical ingredient namely equity multiplier, asset turnover, and profit margin. ROE= (profitability margin)*(asset turnover)*(equity multiplier) = (net sales/assets)*(sales/assets)*(asset/equity) = (net profit/equity) Amazon= 0.73*5.07*0.53=0.02 EBay=1.71*1.75*0.78=2.22 Recommendation This is an indication that the Amazon corporation is struggling as far as liquidity and profitability are concerned, and, therefore, this should be a major concern to address. The management should, therefore, concentrate on the liquidity ratio because if the trend continues the corporation result into inability caters for their daily obligation. The other area of concern is the profitability ratio especially the profit margin. On the other hand, eBay is struggling on asset management. Works cited Jonathan B and Peter, D. Corporate Finance. Surname: https://finance.yahoo.com/q/is?s=ebay https://finance.yahoo.com/q/is?s=AMZN Appendix Column1 Total current asset Amazon Ebay 31327 23531 6 Surname: Total current liability Inventory total liability Total asset Equity Net income Sales Account receivables cost of sales fixed asset 28089 8299 43764 54505 10741 214 29329 5612 20672 16967 17841 0 17841 41488 23647 1023 11 435 12948 4511 2760 7