ACCT90002 Financial Statement Analysis: Analysis on Amazon

Question:

Financial analysis on Amazon

In this assignment you need to perform a financial analysis on Amazon.

Please follow the following steps:

1.

Decompose ROE in this way. Calculate all the following ratios for FY 2020. Analyse and briefly comment on the performance.

  • ROE
  • Operating ROA, NOPAT margin, Operating asset turnover
  • Spread, Net financial leverage
  • Sustainable growth rate = ROE*(1-Dividend payout ratio)

2.

Evaluate operating management, investment management, liquidity and solvency. Please use the following ratios only. Calculate these ratios for FY2018-2020, insert graphs if possible. Analyse and briefly comment on the performance.

Operating management: Gross profit margin, NOPAT margin

Investment management: Asset turnover, Accounts receivable turnover

Liquidity management: Current ratio (short term); Debt-to-equity ratio (long-term)

Solvency: Sustainable growth rate

Please show all calculations in an excel file.

3. Assess the accrual quality

Calculate accruals for FY2018-2020, assess the quality of accruals.

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QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

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