WORKSHEET D: RATIO ANALYSIS

Company Name: Amazon

Industry Name: Consumer Services

Find the missing data for Amazon (AMZN), and answer the below questions.
What information does each ratio reveal about Amazon? Look at your companys profitability, efficiency, liquidity, and solvency, note whether they are improving or deteriorating. Look at your companys profitability, efficiency, liquidity, and solvency, note whether they are better than or worse than its peers. 1. Indicate whether the overall profitability, efficiency, liquidity, and solvency of the company are strong, average, or weak. Briefly explain why you came to this conclusion. 2. Prepare the DuPont Analysis of ROE for your company and its industry. Indicate the primary driver of ROA and ROE for your company. 3. Summarize current events and other items of importance. 4. Indicate whether you would invest in your company, identifying three to five significant points that justify your conclusion.

WORKSHEET D: RATIO ANALYSIS Company Name: Amazon Industry Name: Consumer Services Title of Ratio Industry Ratios Change Company Ratios 2017 Company Ratios 2016 Average Profitability Ratios 32796 | Stronger / 1.71% 1.74% Return on sales (ROS) Weaker 6.49% | Stronger / 2.31% 2.84% Return on assets (ROA) Weaker Return on equity (ROE) 22.69% Stronger 10.95% 12.29% Weaker 34.36% | Stronger, 37.0796 35.09% Gross profit margin Weaker Efficiency Ratios Quicker Slower 13.51 16.31 Accounts receivable turnover Quicker /Slower 6.98 7.70 Inventory turnover Quicker Slower 1.35 1.63 Asset turnover1.98 Liquidity Ratios Current ratio 1.03 More / Less 1.04 1.04 Liquid Solvency Ratios 61% 5296 | More / Less Risk Debt ratio 51%