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Amazon Financial Analysis Paper

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Amazon.com Inc. was founded by Jeff Bezos on 6 July 1994. Its headquarters are in Seattle, Washington and it is the largest retailer which is based on internet in U.S. The services which are provided by Amazon.com included online shopping, web hosting and content distribution. The missions of Amazon.com are making the customer get the lowest price and discover anything they want to buy online, and being an Earth’s most customer-centric company. Based on the Income Statement, Amazon.com Inc. saw a shrink that Net Loss for 2014 is $241Million USD. In 2013, the company had a net income of $274Million USD. Although the revenues were increased from $74.452 Billion USD to $88.988 Billion USD, they did not detach company from the deficit of income. Besides that, a decrease in the percentage of sales growth rate from 21.87% to 19.52%. Apart from that, in 2014, the company held total assets of $54.505 Billion USD which is $40.159 Billion USD more than the company's 2013 asset position. In spite of that, Amazon.com Inc. may run more financial risk than other companies as its current ratios are 1.07:1 and 1.11:1 in 2013 and 2014. This indicates that there are not enough liquid assets to satisfy current obligations. There are three external environment had influenced the performance of Amazon.com Inc. which are economic, …show more content…

Existing and future laws and regulations impede company’s growth. The regulations and laws may cover taxation and privacy. Unfavorable regulations and laws reduce the demand for Amazon.com Inc. products and services and also increase the company’s cost of doing business. For instance, Amazon.com Inc. use drones to deliver their goods in Indonesia. Since it can’t use in U.S because commercial drone use is illegal currently. The Federal Aviation Administration (FAA) indicate that only hobbyists can fly drones outdoors and all commercial use needs to take place

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