Financial Research Report
September 5, 2011
Financial Research Report: Amazon.com Inc. Amazon.com is an electronic commerce business which provides an online marketplace for individuals to shop from the comfort of their own home computer, laptop, tablet, phone, etc. The organization proudly boasts its highly diversified product line-up, offering goods in virtually every category that one might imagine, including books, household goods, electronics, media, grocery and industrial. Their ultimate goal as an organization is to offer Earth’s biggest selection of products while being the most customer-centric company for consumers, sellers and enterprises (“Annual report,” 2008). The company has …show more content…
However, their current ratio was stable in 2010 with 0% change, remaining at the 1.33 that was reported in 2009.
Just as there was increase in the current ratio, Amazon also experienced significant increases in their owner equity. In 2009 Amazon’s owner equity increased by an astonishing 96.74% and in 2010 owner equity increased by an additional 30.57%. These increases took owner equity from $2,672million in 2008 to $6,864million in 2010. Another important number for investors to look at is the organization’s earnings per share. As with all other figures, Amazon’s earnings per share increased both in 2009 and 2010. In 2009 earnings per share came in at 2.08, a 36.84% increase from 2008, while in 2010 they came in at 2.58 at 24.04% increase from 2009.
Stock Price Analysis All of these figures and calculations are important to individuals looking to invest in the organization. Each figure tells a different story about the organization, which leads investors to determine whether or not it is sound for them to invest in the organization. Based on the findings, Amazon.com has had a couple of great years, as all of their ratios have increased or continued to remain stable. This is a strong indicator that the management team of Amazon is doing well—making strong strategic decisions for the organization as well as running the organization efficiently. As an investor one of