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Real World Finance Project DellaPenna Accounting 1

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Presentation on theme: "Real World Finance Project DellaPenna Accounting 1"— Presentation transcript:

1 Real World Finance Project DellaPenna Accounting 1

2 Ask yourself: When you think of Amazon, what crosses your mind??
Shopping Free Shipping Convenient Easy Fast Many More What makes Amazon different from other Corps?

3 Company Profile Publically traded on NASDAQ, and headquartered in Seattle, Washington. Amazon began in 1994, and was founded by John Bezos. Amazon is mainly E-Commerce website providing many products including Amazon Echo, Instant Video, E-Readers, Online Books and In-App Store, AudioBooks, Video Games, Electronics, and much more! Amazon gives a marketplace to third party sales groups looking to find a place to “push” their products, and compete in the online market.

4 General Financial Position
Consistent Increase in Revenue over 3 years. High increase in expenses over 3 years. Net Income effected by high expenses, including general selling with 3rd party.

5 Financial Position-Overall Assets
HIGH Current Liabilities! How long could Amazon continue to sustain these debts?? High offset of assets, which also shows a healthy business overall. Cash has continued to increase steadily over time. Amazon is in a strong financial period of growth, however in my opinion, the business needs to cut down some expenses to survive the long term.

6 Financial Position- Gamechangers
Amazon Prime- Revolutionize Local and International Shipping Points. Amazon Food and Restaurant Delivery – Chicago and LA Markets- test-market success! Amazon Instant Video – Stream online or on devices,

7 Financial Position - Ratios
Profitability Ratio = Net Income/Sales 178,000/88,988= 2.00 Liquidity Ratio = Current Assets/Current Liabilities 31,327/28,098 = 1.115 Quick Ratio =Cash & Receivables / Current Liabilities -20,169/28,098= .718

8 Market Competition Direct Competitors: Ebay Netflix Apple Google
How, you ask?

9 Amazon: Reaching New Heights
In the News: Amazon to compete with UPS and FedEx? How could it compete in the delivery service industry? Amazon China has registered to operate as an open freight forwarder-meaning that Amazon can deliver products from China to the U.S. on its own ships! Many reports in December indicated the possibility of Amazon leasing its own jet planes to use for cross-country delivery. Do you think this would add competition to the delivery service marketplace?

10 2016- Recent News Amazon broke out its "retail subscription services" revenue, which is dominated by Prime but also includes things like standalone video, music and e-book service subscriptions, for the first time. It grew by 43% in 2016 to $6.39 billion, after having grown 62% in 2015. Instead of having the package delivery drone land in your yard, this system would eject the package from the flying drone, which could use "pneumatic actuators, electromagnets, spring coils, and parachutes [to] generate the force that establishes the vertical descent path of the package," Amazon claims this would save time and energy compared to having the drones land and take off again each time they deliver a parcel.


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