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Pages:
2 pages/β‰ˆ550 words
Sources:
3 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 9.36
Topic:

Amazon and Alibaba's Financial Health Analysis

Essay Instructions:

Overview
Financial statements are reports that summarize all the accounting transactions that have taken place during a specific period of time.
Choose a publicly held company and, using the Internet, review its most current annual report. Evaluate the health of the corporation you picked based upon your analysis of its financial statements: balance sheets, income statements, cash flow statements, and statements of shareholders' equity. Then, research a similar sized competitor for comparison.
Instructions
Write a 3–4 page report suggesting ways to improve the company's financial health.
Conduct a vertical, horizontal, and ratio analysis on four financial statements.
Compare the ratio, which includes liquidity, profitability, and solvency, with the industry benchmark and one other comparable competitor.
Synthesize the results of the three financial analysis tests to determine the overall health of the organization.
Present an accurate interpretation of the company's current financial health, including risks. Support your conclusions.
Recommend three ways to improve the company’s financial health, including one example for each that has been used in the industry.
Use three sources to support your writing, including the web address of your chosen company. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. For help with research, writing, and citation, access the library, or review library guides.

Essay Sample Content Preview:

Amazon Financial Analysis
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Amazon Financial Analysis
Amazon, one of the online business giants globally, managed to emerge strong from the effects of the Covid-19 pandemic. The company has experienced tremendous growth during that period since a majority of people worldwide shifted to online markets as a strategy to minimize human contact, hence combating the spread of the virus. Therefore, unlike many other companies in the retail and wholesale business, Amazon managed to increase its revenue from the online sales it made each year since 2020. According to Le Thi Kim (2021), the financial analysis of a company helps to determine the best alternatives for improvement and also in predicting the future financial positions of the company according to the current and past trends.
Amazon’s Financial Health Analysis
According to the company's financial statements, there is a common upward trend in income and a downward trend in the cost of goods and services. Such variance in the trend indicates increasing profitability. According to the company’s 10-K statement prepared by Stocklight (2022), the consolidated statements of stockholder equity indicate that the total stakeholder’s equity has doubled between the end of 2019 and the end of 2021. By December 31, 2019, the company had 498 shares which increased to 503 a year later and reached 509 by December 31, 2021. Despite the small increment in the size of shares, the total stockholder's equity has increased immensely over two years. As of December 31, 2019, the total stockholder’s equity was at $62,060M before it increased to $93,404M by December 31, 2020, and reached $138,245M by the end of 2021. The company's balance sheet indicates a growth of $99,354M in total assets between 2020 and 2021, where the value of total assets was at $321,195M by the end of 2020 and increased to $420,549M by the end of 2021. Ultimately, the income statement indicates a steady net income growth as follows: $11,588M in 2019, $21,331M in 2020, and $33,364M in 2021. The company's net sa...
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