Southern New Hampshire University
Module Seven Homework
What company did you pick?
I choose Amazon, Inc. I think it is an amazing organization, and I have to used this organization for a couple of other courses, ACC-345 and ACC-411, so I feel very confident in reading and analyzing their financial documents, however, I still always learn something very time.
Give the date the latest 10k, 8k and 10-Q were led.
Latest Filing Dates for:
10K was February 4,2022 8K was October 11,2022 10-Q was July 29, 2022
What is the scal year end for this company?
The fiscal year for Amazon, Inc. is January 1 -- December 31
Look into their annual report and nd the following ra os using the latest year available
Current Ra o ->.96 Return on Assets 5.44 Return on Equity 15.79
What do these ra os mean?
1. Current Ratio -- This number is used to determine if an organization will be able to play its short-term obligations, or any obligations that are
due within one year back.
2. Return on Assets -- This ratio indicates how profitable an organization is in relations to the total assets of the organization. It is used to see how well an organization is utilizing its assets of create a profit for the organization.
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3. Return on Equity -- This ratio shows how well the executive management team of an organization is using the money that shareholders are investing within the organization.
Compare and explain the change in Gross Pro t Margin for the most recent two years posted. (Did it change due to Revenue or Costs or both?)
Amazon had a large increase due to revenue. This is increase of revenue is more than likely due to the COVID-19 pandemic that has occurred over the last couple of years. More people were purchasing online, and many of those online purchases was done with Amazon.
Check out the Balance Sheet.
What is the change in Long Term Debt from prior year to most current year? Why the change?
Increase of 15.46%
The COVID-19 pandemic was very profitable for the Amazon organization. However, it should also be noted, that in early part of this year, the organization did have a split with their stock, but not completely sure that would be part of this question.
What is the change in Inventory from prior year to current year? Why the change?
2020- 23,795
2021 - 32,640
Increased of 8,845. This was due to the pandemic, they needed to keep more
inventory so they would be able to shup items more readily to their customers
Seeing a surge in online ordering, they didn't have to worry about the
inventory sitting in the warehouse for long periods of time, as they had a high inventory turn over rate, or ITR.
Check out the nancials and other informa on about this company. Does the company pay dividends? Do you think you would be comfortable purchasing stock in this company