Quantitative Business Analysis

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Amazon Financial Ratio Analysis
Quantitative Business Analysis,
January 14, 2013

Amazon Financial Ratio Analysis
The main purpose of research is to reduce the risk level of a decision. The research process involves six decision stages. The first stage of research process is to determine and clarify the research question. The task before us was – to identify a publicly-traded company that is a leader in its industry. The research questions formed were – what industry to choose? Is there a clear market leader in that industry? Are there enough publicly traded companies in that industry? Is the marker leader a publicly traded company for minimum 5 years? Are the last 5 years’ financial statements of the company available in public domain? The second stage of the research process is creating a research proposal. In this stage budget is allocated to the research project. Our research was allocated small amount of budget and time. So, research needed to be concluded fast. The third stage is designing the research project. In this stage, a blueprint for fulfilling research objectives and answering research questions within allocated resources is prepared. (Cooper & Schindler, 2011, p. 87). In our research, the industries considered for research were: Automobile, Computer and accessories, Soft drink, Sports and apparels, e-commerce, retail, software, banking and finance. These industries were chosen because there are few very big global players in these industries for whom adequate amount of data is available in public domain. It makes the task of data collection easy. In this stage, a pilot test is used to detect weakness in design and data collection process (Cooper & Schindler, 2011, p. 89). The fourth stage is data collection and preparation. For each of the selected industries, top 5 companies were listed down for each of the last 5 years. Each company was marked as publicly listed/ not listed. If the company is listed, determine whether company is...
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