George Washington University Amazon Operations Financial Analysis The attachment shows two things the assignment and the requirements + what I did in step1
George Washington University Amazon Operations Financial Analysis The attachment shows two things the assignment and the requirements + what I did in step1 and step2. I need help with the 1- last part (step 3) .2- However, the professor gave a feedback on the first part and she wants to do some adjustments on :(The background part clearly contains some hidden quotes (which are not flagged by the plagiarism software), so please go through it to ensure all sources are cited properly. Also, it does not seem that sources from your list of references are reflected in your text as in-text citations. Please address it for the next submission). Amazon
Data/table:
1:
year
2018
Amazon Annual Net Income
(Millions of US $)
$10,073
2017
$3,033
2016
$2,371
2015
$596
2014
$-241
2013
$274
2012
$-39
This table from Macrotrends websites and it illustrates Amazon’s annual net income in seven
years. The net income is the net earn after subtracting sales cost, tax, and all the expenses.
According to what is shown, in 2012, Amazon did not achieve a satisfactory return, but, on the
contrary, it incurred losses of $39 million. Furthermore, when Amazon began to gain return of
$274 million, the net income dropped noticeably to $241 in 2014. After that, Amazon’s net
income climbed gradually to $596 million in 2015. Then, the return grew significantly to reach
$10,073 million in the last period. The clearest reason behind losing huge amounts of money is
that Amazon tolerated fixed cost which prevented them from accrue adequate income even
though they obtained revenue.
2:
year
2018
Amazon Annual Revenue
(Millions of US $)
$232,887
2017
$177,866
2016
$135,987
2015
$107,006
2014
$88,988
2013
$74,452
2012
$61,093
This table shows the annual revenue of Amazon between 2012 and 2018. It is clear from the
table that Amazon generated enormous revenues and it increased gradually during the 7-year.
Furthermore, the profit has been historically significant and it was noticeable from the income
statement that the revenue grew about 18% in 2013. Despite the pervious table which showed
that Amazon achieved huge loss in the net income in 2014, in this table at the same year
Amazon’s revenue reached $88,988 million. Moreover, the revenue appears in 2015 and 2016
107,006 and 134,987, respectively. We could indicate the difference in Amazon’s earnings from
2012 and 2018 is $171.783 million. The obvious purpose is that Amazon expanded in many
ways, for example, they added a new service “Amazon prime” and acquired Whole Foods
Market.
3:
year
2018
Amazon Annual Total Assets
(Millions of US $)
$162,648
2017
$131,310
2016
$83,402
2015
$64,747
2014
$54,505
2013
$40,159
2012
$32,555
This table gives information about Amazon’s annual total assets from 2012 to 2018. The total
assets represent the value of the company and it shows the ability to convert it to cash. It is clear
from the table that Amazon’s assets raised greatly in each of the seven periods. During 2012 and
2013, the total assets grew about 25% while it increased 30% and 50% between 2015 and 2017,
respectively. As expected, Amazon benefits attained $162,648 million at the last period. Since
Amazon have high profit, that leads to increase in total assets.
Background:
Amazon is an American technology company which is located in Seattle, Washington. In 1994,
Jeff Bezos instituted Amazon to sell books online, and he created a strategy to deliver books to
the reader around the world. Analysts claimed that Amazon will lose because of their strategy
and the competition with Barnes & Noble. However, Amazon proved its success when the
revenue rocketed from $15.7 to $148 million between 1996 and 1997 respectively. Later, the
company expanded significantly to sell many products to consumers such as furniture, food,
electronics, toys, video games, software, clothes, and jewelry. In 1997, Amazon went public and
its stock was priced at $18 per share. Moreover, Amazon started selling an electronic reading
device, called Kindle, in a good price that had a huge impact on book publisher. In 2005,
Amazon invented “Amazon prime”. It is a paid subscription which offers free delivery in two
days and another services, for example, streaming videos. Amazon gained 100 million Prime
members and, in 2017, Amazon shipped 100 million items in the United States. Amazon growth
relay on prime members in a significate way. In 2017, Amazon purchased Whole Foods for
$13.4 billion. The idea was to improve the online shopping and change the shopping habit in
food and beverages. Also, Amazon allowed home delivery to the consumer and provided Whole
Foods with lockers for online orders pick up. Furthermore, Alexa is technology device that was
invented by Amazon 5 years ago. It is a virtual assistant which has the ability to perform a voice
service. Alexa is capable of speaking many languages, tell jokes, interact with the customer, set
alarms, and many other incredible things. Few years ago, Alexa had 13 skills, however, Amazon
improved its capabilities to 100,000 skills. Amazon played a major role in social responsibilities.
It focuses on providing a good education for children who grew up in poor environments and
encouraging the next generations to be passionate about Science, Technology, and Math. In
addition, “Amazon goes gold” is a collaboration between American Childhood Cancer
Organization and Amazon to increase health awareness.
APA citation:
–
–
Amazon authors. (2019, July 24). Community giving. Retrieved from
https://www.aboutamazon.com/amazon-fulfillment/community-impact/communitygiving
Hall, M. (2019, October 17). Amazon.com. Retrieved from
https://www.britannica.com/topic/Amazoncom
Taylor, T. (2019, November 05). Alexa, happy birthday. Retrieved from
https://blog.aboutamazon.com/devices/alexa-happy-birthday
Walters, N. (2018, April 26). Top 3 things to know from Amazon’s annual report.
Retrieved from https://www.fool.com/investing/2018/04/26/amazon.aspx
EAP6111 for Finance
Financial analysis of a company: background, analysis of financial data, SWOT,
conclusion/recommendation
Step/assignment 1
Your first assignment should include the Background section of your company and the selection
of numerical findings you will focus on for your financial analysis:
–
–
Background: Please write a one-to-two-page summary of the company’s background.
You should use font size 12 and double spacing. You should cite at least three sources in
the background section, including the annual report itself and two other sources of your
choice. When citing your sources, use appropriate APA conventions for summarizing,
paraphrasing, and quoting.
Data/Tables: Please study the annual report (and possibly other sources) and select a
range of numerical findings you would like to include into your own financial analysis
report. Transform those findings into clearly formatted tables (and do any necessary
calculations for ratios, etc.) and prepare those tables as your next submission for the final
project. The foci of numerical findings can be anything you consider important; at least
three (3) tables with final output are required. Data commentary for these tables is
optional at this time (it will be required for a later submission).
Deadline: midnight on Monday, November 11.
Step/assignment 2
This step includes the updated Background + Financial Analysis section. You will receive
your Background drafts back with specific comments from me within a day or two; please feel
free to address those for the next submission. In the Financial Analysis section, please
incorporate all financial data (in form of tables and graphs) you plan to analyze and include
extended commentary on the observed trends. I anticipate that the full submission should be no
less than 4 pages (double-spaced, font size 12), but feel free to write more if your data permit.
Deadline: midnight on Sunday, November 17.
Step/assignment 3
Please submit the first draft of your SWOT analysis and ‘Recommendations for Investment’
sections. The SWOT analysis should begin with a brief overview, discuss Strengths,
Weaknesses, Opportunities, and Threats of your chosen company (as determined by your own
analysis of the annual report AND information/insights from possible sources you may have
gathered for this assignment as part of your source report sheets). The ‘Recommendations for
Investment’ section should concern possible recommendations to the company itself (next steps)
AND for potential investors who may or may not be presently interested to purchase shares of
this company. Your recommendations should be grounded in conclusions from your financial
analysis and SWOT parts. The length of this half-draft submission should be 4-6 pages
(double-spaced, font size 12) total.
Deadline: midnight on Monday, November 25.
EAP6111 for Finance
Financial analysis of a company: background, analysis of financial data, SWOT,
conclusion/recommendation
Step/assignment 1
Your first assignment should include the Background section of your company and the selection
of numerical findings you will focus on for your financial analysis:
–
–
Background: Please write a one-to-two-page summary of the company’s background.
You should use font size 12 and double spacing. You should cite at least three sources in
the background section, including the annual report itself and two other sources of your
choice. When citing your sources, use appropriate APA conventions for summarizing,
paraphrasing, and quoting.
Data/Tables: Please study the annual report (and possibly other sources) and select a
range of numerical findings you would like to include into your own financial analysis
report. Transform those findings into clearly formatted tables (and do any necessary
calculations for ratios, etc.) and prepare those tables as your next submission for the final
project. The foci of numerical findings can be anything you consider important; at least
three (3) tables with final output are required. Data commentary for these tables is
optional at this time (it will be required for a later submission).
Deadline: midnight on Monday, November 11.
Step/assignment 2
This step includes the updated Background + Financial Analysis section. You will receive
your Background drafts back with specific comments from me within a day or two; please feel
free to address those for the next submission. In the Financial Analysis section, please
incorporate all financial data (in form of tables and graphs) you plan to analyze and include
extended commentary on the observed trends. I anticipate that the full submission should be no
less than 4 pages (double-spaced, font size 12), but feel free to write more if your data permit.
Deadline: midnight on Sunday, November 17.
Step/assignment 3
Please submit the first draft of your SWOT analysis and ‘Recommendations for Investment’
sections. The SWOT analysis should begin with a brief overview, discuss Strengths,
Weaknesses, Opportunities, and Threats of your chosen company (as determined by your own
analysis of the annual report AND information/insights from possible sources you may have
gathered for this assignment as part of your source report sheets). The ‘Recommendations for
Investment’ section should concern possible recommendations to the company itself (next steps)
AND for potential investors who may or may not be presently interested to purchase shares of
this company. Your recommendations should be grounded in conclusions from your financial
analysis and SWOT parts. The length of this half-draft submission should be 3-5 pages
(double-spaced, font size 12) total.
Deadline: midnight on Monday, November 25.
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