Financial Analysis: The Total Asset Turnover Of Amazon

Section III— Financial Statement Analysis

To perform my financial analysis, I looked back at Amazon’s financial statement for the last three years. As I had previously stated Amazon’s profits have been growing on average approximately 26% for the last 3 years. The breakdown of net sales for 2017 is as follows, net sales have risen from overall from 2014 to 2015 20%, from 2015 to 2016 27% and 2016 to 2017 31%. In North America alone 25% in 2016 to 33% for 2017, a total of $26,352 million dollars. International sales have increased a total of $10,314 million dollars, and Amazon Web Service (AWS) $5,240 million dollars. (Amazon INC, 2017). This show a growth related to the store options in Seattle, the added income from the buy of Whole Foods Markets.

After looking at Amazon’s financials for this last calendar year of 2017, I also compared them to Walmart and eBay as their biggest

(StockTrak, 2018) My inspection of Amazon also displays the Inventory Turnover rate to be under that of the industry average, at 7.7 or every 48 days. The industry average is 8.1 or every 45 days. At Walmart at 8.50 or 43 days. (StockTrak, 2018) I was unable to compare to eBay as the company its self does not hold inventory.

Days of Sales Outstanding which measures the ability of the company to receive its money in a timely manner, propose that Amazon has a hard time collecting money due, either from its venders or credit companies, at the rate of 26.64, which is higher that the Industry average of 19.16. eBay, also seems to have this issue, at the rate of 26.52, which means to me that the issue might be getting the funds from credit card companies in a timely manner. As Walmart doesn’t seem to have this issue, at 4.32.

Solvency