Essay On Amazon Company

The company distinguishes out among the numerous corporations throughout the globe owing to its inventiveness and magnitude. Amazon is known to be the biggest cloud computing and e-commerce firm. The firm is seeking to increases its profits just like other firms. The business is well-known for its rigorous working circumstances, which force employees to perform to the best of their ability. These policies are common for organizations of such a size. The vision of the executive manager is intimately related to the future of every humanity. The director has tried to push breakthrough technology to the farthest they can go. This paper analyzes the fiscal performances of the firm within a two-year period. We shall be using various concepts in finance in order to measure the financial performance; they include, shareholder return ratio, activity ratio, leverage ratio, liquidity ratio as well as profitability ratio.

Financial Ratios

Table 1 shows they way we have obtained various financial ratios of the amazon firm. We can see from table that the profitability ratio fell from 18.38 percent in 2020 to 13.68 percent in 2021. We can say that the primary reason for this decline is the expense of reorganizing as ell as opening branches in other countries. There is a higher likelihood of the profit margin of the amazon firm to increase once the development of buildings has been completed (Al-Marzooqi, & Nobanee, 2020).

We shall examine the liquidity of the amazon company. We have various examples of liquidity ratios, they include; quick and cash, current. We are going to perform the analysis of the current ratio in this section. We have computed the current ratio by dividing the current assets by the current liabilities. The has been a reduction of the current ratio of the amazon company starting from 2016 to 2017; however, there was a rise in the current ratio in 2017 to 2018. The current assets of amazon were 76212 while the current liabilities amount to 69481. So, we shall divide 76212/69481 which gives 1.097 (Crespo-Lopez et al., 2021).

We can say that the liquidity ratio will compare the current assets to the current liabilities of a firm. There is a decline in the current ratio of the amazon, this is mainly attributed because the amazon company is using the current assets in growing their operations into other markets. The current ratio fell from 2.30 in 2020 to 0.3 in 2021. We can also check the leverage ratio; this will show that the debt of the firm has grown in relation to the total assets. There is also a decline the leverage ratio, it fell from 2.30 in 2020 to 0.93 in 2021. The liabilities of a firm outweighed its assets in 2020. We can see from table that the efficiency of amazon fell from 1.38 in 2020 to 1.33 in 2021 if we are to consider the total asset turnovers. the values have rose from 17.81 to 30.29 if we take into account the P/E ratios. This also tales a bigger role in return ratio. This suggest that an investor is prepared to incur a lot of costs for amazon stock in exchange of the potential profit. This indicates that this firm performance shall improve years to come.

Table 1. Profitability ratios of Amazon

Every monetary parameter, in my opinion, is extremely relevant when analysing the success of a company. Various financial ratios convey varied interpretations of the success of the company. In contrast, we can see the current ratio being the most useful while examining the success level of the company. The current assess is important since it indicates if this business can have adequate assets to satisfy the current needs. Amazon is pursuing an ambitious expansion plan, and funding allocation has become the top issue. Lack of sufficient finance, this corporation will be unable to pursue their goal of expansions.

Strategic Alliance

We can say that in order for strategic alliance to occur, two firms decide to collaborate on the mutualistic initiative as they maintain their sovereignty. The firms shall path ways once the goal has been achieved. Amazon has collaborated with various businesses in order to build as well as increasing the market reach. Amazon has formed partnership with various organizations including; Facebooks pay, Apple Card, Kohl’s, JP Morgan. Such agreements give substantial benefits to amazon; including increased customer knowledge of the goods and services offered by amazon. There is also growth of various product ranges. Though, there are significant benefits associated with partnership, such partnerships also pose some risks to the firm. The major risk as a result of partnership is the global alliance, this might develop owing to cultural differences as well as resource sharing associated to the respective parties.

Furthermore, this concern may emerge as a result of the miscommunication caused by the overseas language of the other nation. They might face market insulation concern owing to the availability of the regional stakeholders. The amazon company may find it difficult to maintain the goals owing to the strategic partnership which has been founded on common respect between the partnerships. Such might cause the procedure to be delayed, leading to considerable damage. There shall be a reduction in the net profit margin, this provides quick indication on the performance of the alliance. When this partnership is ineffective, this firm would have to spend additional costs, this shall cause reduction in the net profit margin.

Financial Climate

Amazon has maintained the ambitious growth plan in order to increases the business footprint. Amazon has a higher likelihood of obtaining cash to fund the ambitious intrinsic worth agenda. I am anticipating that the interest rates for amazon shall be closing to 3.3 percent.


Al-Marzooqi, M. B., & Nobanee, H. (2020). Financial Analysis of Amazon. Available at SSRN 3647442.
Crespo-Lopez, M. E., Augusto-Oliveira, M., Lopes-Araújo, A., Santos-Sacramento, L., Takeda, P. Y., de Matos Macchi, B., ... & Arrifano, G. P. (2021). Mercury: What can we learn from the Amazon?. Environment International, 146, 106223.
16 Nov 2022
Assignment, Deadline: 5 hrs 19 mins ago

This is an excellent service provider. Work done before deadline. Quick response for any query. Direct response from expert 24/7....

16 Jul 2022
, Deadline: 20 days 15 hrs ago

pretty good overall. it was a team assignment. I felt some of my work was corrected by the team....

16 Jul 2022
Course Work, Deadline: 1 months ago

I have such a hard time beginning my assignments for fear of not doing a good job on them. This service gives me that push that I need to get my assi...

review image
review image
review image
review image
All Reviews

Hurry and fill the order form to say goodbye to dreadful deadlines for good

order now