Liquidity and Solvency Ratio Analysis

Analyze the significant trends for the 3 years for the companys liquidity. Include the inventory valuation method the company uses, as well as the policy for credit and collection and the effect these have on liquidity ratios.

Analyze significant trends you see for the companys debt over the last 3 years. Include how the company uses debt or equity to raise capital, any significant debt the company may be carrying, and any leases the company has that may affect debt.

Data is below

Liquidity Ratios	Amazon Company
Short-Term Debt Paying Ratios	12/31/20	12/31/21	12/31/22
Working Capital	1.86	1.85	1.96
Current Ratio	3.01	3.12	2.35
Acid Test Ratio	1.92	1.86	1.28
Cash Ratio	0.95	0.70	0.86
Long-Term Solvency or Financial Leverage	12/31/20	12/31/21	12/31/22
Times Interested Earned	-14.68	21.09	0.25
Fixed Charge Coverage	-	-	-
Debt Ratio	10%	12%	15%
Debt: Equity Ratio	2.44	2.04	2.17
Asset Utilization or Turnover Ratios	12/31/20	12/31/21	12/31/22
Inventory turnover	9.80	8.34	8.40
Days Sales in Inventory	37	44	43
Receivables Turnover	15.9	14.4	12.2
Days Sales in Receivables	23	25	30
Operating Cycle	0.60	0.58	0.56