Financial Analysis of Amazon.com, Inc.

REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
About the company and its business......................................................................................3
Two recent developments in the international economy........................................................3
Sources of Finance.................................................................................................................6
Dividend policy......................................................................................................................8
Analyse the financial performance to calculate ratios............................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................14

INTRODUCTION
A detailed analysis of the business organisation assists various stakeholders to make
relevant decisions regarding investments in the organisation by providing a deep study of the
financial performance (Bravo and et.al, 2019). This report includes a significant financial
analysis of the financial performance of Amazon.com, Inc. with the help of ratio analysis along-
with lightening on its sources of finance and dividend policy. A detailed study has been
performed on the recent developments in the global economy which have impacted on the
company's performance and development in the recent time and their future impact on the
company's financial performance. All these analysis will help the investors to make investment
decisions by assessing the organisational financial management and growth aspect.
TASK
About the company and its business
Amazon.com, Inc. is a American multinational company operating in mainly e-commerce
and information technology industry having its headquarter in Washington D.C. It is one of the
big five information technology company in the recent time which was actually formed in year
1994. The company has net revenue of $ 46,980 Crore in last year 2021. It has a total market
capitalisation of $ 1.176 trillion Crore. It has a wide customer base world-wide. It is the world's
largest online retailer having a great market cap.
Two recent developments in the international economy
Increasing role of Artificial Intelligence (AI) and Robotics
With the emergence of the new technologies there has a significant increase in the role of
Artificial Intelligence and robotics globally. Experts have provided their views on the major
results of the active AI and robotics development (Davydchuk and et.al, 2020). It has affected
substantially the business environment. With the rise in the uses of technologies, these is a great
increment in the requirements of Artificial Intelligence. It has higher benefits of using it in the
global business environment. Developments in the technology factor has not impacted on the
general people but also affected the manufacturing and service industry on a vast level.
Companies in now days more engaged in the using and development of robotics as it makes the
business practices more simpler than the previous times. This development in the global
economy has more impact in the developed countries whereas the developing countries which

has weak financial position remain unaffected with its effect. It has created new jobs roles in the
market place. It assist the companies to make their business processes more efficient and
effective. Using the emerging technology of robotics and artificial intelligence is not a challenge
but a advantageous collaboration between automated processes and humans.
To counter this development in the external environment of the business Amazon has
built a large and in-depth policy to using artificial intelligence and robotics in its business. It has
performed a deep research program on the artificial intelligence and its effect on the company's
business describing how the company can use this to enhance its efficiency and encounter the
technological factor of the external environment (Duan, J., 2019). For this it has launched a
range of products which supports the artificial intelligence and provide its customers more
benefits. In the last September, it announced to launch of Astro, which is its first household robot
supported by its Alexa smart home technology. Similarly before this, it has launched its Echo
product which also support the use of Artificial Intelligence. Further to counter its ill-effects on
the employees as there is a misperception that due to the use of robotics there will be less
requirement of the humans, it has planned various activities and sessions that will clear the use of
artificial intelligence to the employees and motivate them regarding using this in their outlays
and offices. After this development the sale of the Amazon company increases rapidly in the
global environment as well as local marketplace. The sale graph experienced a dip by over
86.23% when it was revealed to the customer that the interface is with the machine, not humans,
and decrease the timing of the call substantially. After that development the price of the products
have increased due to the cost of development. The profit of the Amazon company was high due
to this development. The profit of the company reached their highest level as share of gross
domestic product after introduce artificial intelligence. The annual economic growth rates
changing the nature of work and creating the new relationship between people and machines. If
the company uses third party AI software then company pays $40000 per year that the cost of
development is very high.
After few years, technology will rule the world with its immense powers. Company is
regularly increasing its uses within its business environment by measuring its impact on the
various business factors and managing and controlling its ill-effects. Since technology played a
vital role in the overall growth of its business, the company can not avoid to get along with
recent developments in the technology. A research team is set to do an in-depth analysis of the