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(PDF) Financial Analysis of Amazon

   

Added on  2021-02-19

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Amazon 2018Income StatementAnalysis
(PDF) Financial Analysis of Amazon_1

Table of ContentsComparison of net income of current and last year and causes of change..................................1Accounts which has cached attention compared to prior year's income statement.....................1Reasons behind the changes.........................................................................................................1Calculation of profit margin of both the years.............................................................................2Information provided by the results or ratios...............................................................................2Result improved or worsened......................................................................................................2REFERENCES................................................................................................................................4
(PDF) Financial Analysis of Amazon_2

Comparison of net income of current and last year and causes of changeFrom the annual report of Amazon it has been analysed that net income of year 2018 isincreased in current year as compare to previous year (Annual report of Amazon, 2018). Thereare various causes of this increment and one of the main reason which is being identified isincreased sales and interest. All these elements have resulted in enhancement of sales for year2018. Amount of revenue do not include any income which is collected on behalf of third party.Accounts which has cached attention compared to prior year's income statementThere are various accounts which has cached the attention compared to prior year'sstatement. These are other income or expenses, operating income and fulfilment. Briefdescription of all of them is as follows:Other income or expenses: This account is grabbing attention of the analyser because inyear 2017 it shows other income but for year 2018 it is showing expenses which means incurrent year additional expenses have take places which were not being faced by organisation inprevious year. It also shows that other income of Amazon is reduced in current year.Operating income: Annual report of Amazon is reflecting that operating income ofAmazon is increased in year which is resulting in increased profits. It has cached the attentiondue to massive enhancement.Fulfilment: These expenses are mainly related to e-commarce businesses because it isthe process of receiving, shipping and packing order for goods. As Amazon is one of the largeste-commerce organisation so this particular account has cached attention because it is one of themajor accounts in the income statements that may leave impact upon profits.Reasons behind the changesThere are various reasons behind the changes in various accounts of income statements.All of them are as follows:Operating expenses are related to day to day activities of an organisation and main reasonbehind increment of them is increment in North America and AWS sales and decrementin operating loss from international sales.Reason behind occurrence of other expenses in year 2018 are reduced equity securitiesgains, foreign currency and equity warrant.1
(PDF) Financial Analysis of Amazon_3

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