Mini Mba assigement
ACCOUNTING BASICS
FINAL ASSIGNMENT cIM MBA 2013
Emily Song
The final written assignment is individual assignment and will be your own work on performing financial analysis on Amazon.com. Since successful financial ratio analysis is as much an art as it is a science, you must use common sense and sound judgment throughout the analysis.
The purpose of this assignment is to provide you with the opportunity to:
Work with real time financial data via the Web;
Evaluate how the company is performing over the last four years;
Practice ratio ratios analysis of the company;
Evaluate industry comparative analysis
Identify the company’s weak and/or strong areas of performance and recommend for areas for improvement
The paper includes five sections: 1) introduction of the company and the industry; 2) trend and ratio analysis; 3) dupont analysis; 4) industry comparative analysis and the final section which is also the most important: 5) recommendation on Amazon for areas to improve.
Trend and ratio analysis
Trend and ratio analysis provides signals as to whether the company's financial health is likely to improve or deteriorate. You will perform the trend analysis based upon the following financial ratios: A sample of trend and ratio analysis is shown (below) in table 1.
Liquidity Ratios: to measure the company's ability to pay its bills;
Efficiency Ratios: to measure the company's ability to utilize its assets;
Profitability Ratios: to measure the company's ability to generate earnings;
Leverage Ratios: to measure the extent to which the company's assets are financed with debt;
Market Value Ratios: to measure the market perception about the company's future prospects
Table 1. Company X Trend & ratio Analysis
Performance Area
2008
2009
2010
2011
Trend
Liquidity:
Current ratio
Acid test ratio
Asset management ratios:
Inventory turnover ratio
The days sales outstanding
FINAL ASSIGNMENT cIM MBA 2013
Emily Song
The final written assignment is individual assignment and will be your own work on performing financial analysis on Amazon.com. Since successful financial ratio analysis is as much an art as it is a science, you must use common sense and sound judgment throughout the analysis.
The purpose of this assignment is to provide you with the opportunity to:
Work with real time financial data via the Web;
Evaluate how the company is performing over the last four years;
Practice ratio ratios analysis of the company;
Evaluate industry comparative analysis
Identify the company’s weak and/or strong areas of performance and recommend for areas for improvement
The paper includes five sections: 1) introduction of the company and the industry; 2) trend and ratio analysis; 3) dupont analysis; 4) industry comparative analysis and the final section which is also the most important: 5) recommendation on Amazon for areas to improve.
Trend and ratio analysis
Trend and ratio analysis provides signals as to whether the company's financial health is likely to improve or deteriorate. You will perform the trend analysis based upon the following financial ratios: A sample of trend and ratio analysis is shown (below) in table 1.
Liquidity Ratios: to measure the company's ability to pay its bills;
Efficiency Ratios: to measure the company's ability to utilize its assets;
Profitability Ratios: to measure the company's ability to generate earnings;
Leverage Ratios: to measure the extent to which the company's assets are financed with debt;
Market Value Ratios: to measure the market perception about the company's future prospects
Table 1. Company X Trend & ratio Analysis
Performance Area
2008
2009
2010
2011
Trend
Liquidity:
Current ratio
Acid test ratio
Asset management ratios:
Inventory turnover ratio
The days sales outstanding