SUMMER INTERNSHIP REPORT ON

“FINANCIAL ANALYSIS”
AMAZON INC
Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD,

KUKATPALLY, HYDERABAD – 500 085
in partial fulfilment of the requirements for
the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
HOOREEN NAAZ
ROLL NO : 19L51E0016
Under the Guidance of
MRS SWATHI G
Assistant Professor, Department of MBA.

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

SHADAN WOMEN’S COLLEGE OF ENGINEERING & TECHNOLOGY
KHAIRATABAD, HYDERABAD – 500 004.
December 2020

1
 CERTIFICATE

This is to certify that the Summer Internship titled “FINANCIAL ANALYSIS”

is being submitted by “HOOREEN NAAZ ROLL NO:-, 19L51E0016 in partial fulfilment

of the requirements for the award of the degree of Master of Business Administration to
Jawaharlal Nehru Technological University Hyderabad, Hyderabad is a record of
bonafide work carried out by her under my guidance and supervision during the academic year
2019 - 2020.
The results presented in this summer internship have been verified and are found to be
satisfactory. The results embodied in this summer internship have not been submitted for the
award of any other degree or diploma to this/any other University.

Mrs. SWATHI G Dr. S. SUSI

Assistant Professor HEAD OF THE DEPARTMENT
Department of MBA Department of MBA
Shadan Women’s College of Engineering Shadan Women’s College of Engineering
and Technology, Khairatabad – 500 004. and Technology, Khairatabad – 500 004.

2
 DECLARATION

I hereby declare that the Summer Internship titled “FINANCIAL ANALYSIS” is a

record of bonafide work done by me in the Department of Master of Business Administration,
Shadan Women’s College of Engineering and Technology, Khairatabad, submitted to the
Jawaharlal Nehru Technological University Hyderabad, Hyderabad in partial fulfilment
of the requirements for the award of the degree of Master of Business Administration.

The results embodied in this Summer Internship have not been submitted for the award of any
other degree or diploma to this/any other University.

HOOREEN NAAZ
ROLL NO : 19L51E0016

3
 ACKNOWLEDGEMENT
The satisfaction and euphoria of successful completion of any work could be
incomplete without mentioning the persons who made it possible, whose constant guidance
and encouragement crown our efforts with success.

I take this opportunity to express my grateful acknowledgement to The

Management, Shadan Women’s College of Engineering and Technology, Khairatabad for
their kind encouragement and granting permission to do this summer internship.

I also express my thanks to Dr. Palani, Principal, Shadan Women’s College of

Engineering and Technology, Khairatabad for providing infrastructure and facilities.

I express my sincere gratitude to Dr.S. Susi, Head of the Department of MBA, for
her extended help, concern and persistent encouragement and support.

I wish to express my heartfelt thanks and sincere acknowledgement to my guide MRS

SWATHI G , Assistant Professor for his/her concern and help to direct me for every move
in this summer internship.
I acknowledge with grateful thanks to the authors of the references and other
literatures referred in this summer internship.

I finally thank my parent, friends and relatives who render their help directly or
indirectly for the completion of this summer internship.

HOOREEN NAAZ
ROLL NO : 19L51E0016

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 EXECUTIVE SUMMARY
Financial analysis tools can be useful in assessing a company’s performance and
trends in that performance. In essence, an analyst converts data into financial metrics that assist
in decision making. Analysts seek to answer such questions as: How successfully has the
company performed, relative to its own past performance and relative to its competitors? How
is the company likely to perform in the future? Based on expectations about future
performance, what is the value of this company or the securities it issues? A primary source of
data is a company’s annual report, including the financial statements and notes, and
management commentary (operating and financial review or management’s discussion and
analysis). This reading focuses on data presented in financial reports prepared under
International Financial Reporting Standards (IFRS) and United States generally accepted
accounting principles (US GAAP). However, financial reports do not contain all the
information needed to perform effective financial analysis. Although financial statements do
contain data about the past performance of a company (its income and cash flows) as well as
its current financial condition (assets, liabilities, and owners’ equity), such statements do not
necessarily provide all the information useful for analysis nor do they forecast future results.
The financial analyst must be capable of using financial statements in conjunction with other
information to make projections and reach valid conclusions. Accordingly, an analyst typically
needs to supplement the information found in a company’s financial reports with other
information, including information on the economy, industry, comparable companies, and the
company itself.The project entitled Financial assessment "AMAZON INC'' heave light on all
around the financial performance of the affiliation.

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 INDEX

CONTENTS PAGE:N
CHAPTERS O

INTRODUCTION
1

 NEED & IMPORTANCE OF THE STUDY

 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 METHODOLOGY OF THE STUDY
 LIMITATIONS OF THE STUDY

REVIEW OF LITERATURE
2

3
COMPANY PROFILE

DATA ANALYSIS &INTERPREATION

4

5 FINDINGS, CONCLUSIONS SUGGESTIONS

BIBLIOGRAPHY

TABLES OF THE CONTENTS

6
S.NO TABLES PAGE NO

1 CURRENT RATIO

2 INVENTORY TURNOVER RATIO

3 NETWORKING CAPITAL RATIO:-

4 EPS:

5 EBIT

7
 GRAPHS
S.NO GRAPHS PAGE NO

1 CURRENT RATIO

2 INVENTORY TURNOVER RATIO

3 NETWORKING CAPITAL RATIO:-

4 EPS:

5 EBIT

8
 CHAPTER-1
INTRODUCTION

9
 INTRODUCTION
Financial Analysis (furthermore implied as spending Analysis or Accounting
Analysis or Analysis of Finance) mentions the assessment of the reasonableness, quality, and
efficiency of a business, sub-business, or undertaking. Experts at the United Nations office
make reports abuse degrees that usage data got from monetary clarifications and elective
reports. These reports zone unit conventionally given to prime management together of their
bases in settling on business decisions.
FINANCIAL ANALYSIS
Keep up or stop its essential operation or a bit of its business; Make or get a couple of
fixings in its thing preparation; securing or rental/leasing sure contraption and
instrumentality inside the making of its goods. Issuing stocks to lift assets or discuss a
bank loan; Make decisions concerning adventure or loaning capital; Make elective
determinations to tell the different choices inside the business behavior of management.
Giganticness of degrees

Efficiency ratios show the purpose of an association's profitableness (a). contract holders
of the corporate and (b). The association's employable force.ROI size association falls into
the primary class. The association's capacity in terms of reasonable usage of benefits
reflects in profit.
Notwithstanding the high please the check of improved execution, a lower edge doesn't
derive a weaker, please hypothesis if a firm has higher endeavor/quality turnover. This
way, the available quality of a corporation are generally quantifiable, maintained a mix of
each the paying power, and besides the please adventure (ROI). The picking up force of a
corporation now outlined out because of the general profitableness of a corporation.
There square measure 2 edges to the current ratio:

Profitableness on bargains as reflected in lucre, and

The profitableness of an investment is completely thought about the
investment/notwithstanding turnover.

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 NEED FOR THE STUDY
Financial coming up with is AN vital a bit of cash related considering. desire uses past
information to foresee future cash related requirements. it's crucial to achieve ability to
understand the cash related execution of the corporate. it's used as a benchmark for
looking over the cash related position and execution of an affiliation. Obtaining power
helps with getting goliath proportions of financial of fiscal information and manufacture
abstract choices concerning the financial introduction of the corporate. Since MSL could
be a principle association in NBFCS, it's critical to endeavor to do assessment and figure
organization income.

With the assistance of picking up power, one will pick :-

1. Ability to fulfill returns on web resources liabilities.

2. To what degree has the corporate used its semi-unending financial condition by taking
assets.

3. The flexibility of the corporate to use its favorable circumstances forget deals income.

4. All operational force and execution of the operational organization

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 OBJECTIVE OF THE STUDY

• To do comparative examination of various reports over years.

• To fathom cash inflow and outflow under various activities.

• To take a gander at the presentation of the comapany in the present financial circumstances

• To understand publicize position of AMAZON INC (AZ) by doing exhibit regard ratio
examination.

• To give recommendations dependent on liquidity, profitability and various measures.

• To do examination dependent on share cost of the association.

• To think about the movements and challenges the region and companions would
understanding due to Covid-19.

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 SCOPE OF THE STUDY

1. The financial statement examination is useful for different individuals and for different
purposes.
2. The degree of Financial Statement Analysis may be contrasting beginning with one
situation then onto the following condition

13
 METHODOLOGY OF THE STUDY
SOURCES OF DATA
 Primary Data
 Secondary Data

1. Primary Data: Primary data is the information which is accumulated in light of the
fact that.

This joins the information which is accumulated clearly by helping out the General
Manager of the AMAZON INC (AZ)

2. Secondary Data: Secondary data is the data which has been taken from the available
sources.

This joins the information amassed from the yearly reports and the site of.
http://www.astramwp.com/

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 LIMITATIONS OF THE STUDY

1. The study is confined to a period of last 4 years.

2. As most of the data is from the secondary sources, hence the accuracy is limited.

15
 CHAPTER-II

REVIEW OF LITERATURE

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 REVIEW OF LITERATURE

FINANCIAL ANALYSIS:

Financial analysis is that the system for trademark the affiliation's cash characteristics and
weaknesses by properly developing the association between the record and accordingly the profit
and loss account. It helps with short and semi-ceaseless anticipating and may follow
improvement with the assistance of financial execution analysis. Analysis of the records the
methodology for evaluating the association between the parts of an assets to comprehend an
improved cognizance of the position and execution of the corporate. This analysis is passed on
by parties, owners, loan supervisors and investors, either through or outside the association's
management.
Analysis of the records shows 3 primary advances:

The primary development incorporates the redoing of all cash information containing cash
statements. Along these lines, cash statements is isolated into solitary segments and renamed into
bound condition parts solid with their similarities and affiliations. Thusly, the record and profit
and loss accounts square measure totally reinvested and totally not exactly equivalent to their one
of a kind structure inside the thick kind.

The ensuing development is to determine essential associations between the record and as such
the individual parts of the profit and loss account. this is consistently done through the machine
instruments of financial analysis, as quantitative association analysis, analysis, general size
record and comparativerecord.

• Finally, the last item got past the machine of fiscal instruments is surveyed.

Decision, relationship and analysis of cash of monetary of fiscal statements in an amazingly brief
financial analysis. Instruments of research square measure wont to affirm the business'
investment worth, FICO appraisal and operational power.

Financial analysis thusly helps with featuring the real factors and associations of social control
execution, association power, cash quality and weakness, and credit extraordinary of the
corporate.
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Financial Statement Analysis (or cash related Analysis) is that the technique for understanding
the hazard and profit of an affiliation (business, sub-business or assignment) through the analysis
of reportable monetary data, astoundingly yearly and quarterly reports.

Financial Statement Analysis consolidates 1) Reforming reserves, 2) Analysis of development

Errors and changes, and 3) cash related size association Analysis supported Reformed and
Adjusted monetary Statements. the 2 starting advances square measure generally place into
watch, which deduces that financial ratios square measure determined reinforced reportable
numbers, maybe with specific changes. reserves analysis is that the foundation for evaluating
credit danger and determinant rating and beginning company valuation.

1) finances analysis begins with changing normally reportable cash related information.
inside the case of the profit-and-loss statement, a standard variation is to isolate reportable things
into constant or conventional things and non-rehashing or one of a kind things. during this
procedure, livelihoods is disconnected into general or head financial expansion and brief
financial increment. General returns square measure extra unending and along these lines extra
pertinent to evaluation and valuation. General financial increment is additionally disengaged into
Net Operating Profit, after Tax (NOPAT) and web monetary expenses. The record is
orchestrated into, for instance, Net in operation assets (NOA), web financial commitment and
value.

2) Analysis and change of activity botches raises question about the standard of the
reportable accounting numbers. reportable numbers could in like manner be a terrible or
boisterous illustration of contributed with capital for instance, in terms of NOA, which proposes
that Return on Net Operating Assets (RNOA) could be a sound live of essential profit (internal
bring rate back). , IRR). Innovative work use is accomplice instance of once the expense of R&D
is anticipated to yield future investment edges. accomplice instance of accomplice change of
activity botches is at one time the inspector deducts R&D costs from the profit-and-loss
statement and puts them on the record.

Innovative work costs square measure counterbalance by the R&D capital loan amortization on
the record. Another model is that the alteration of reportable numbers once the specialist
addresses earnings management.

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1) monetary degree association analysis ought to be reinforced re-collected and balanced
monetary statements. There square measure 2 sorts of enormity association analysis: three.1)
danger analysis and three.2) profit analysis:

1.1) Analysis of Risk conventionally undeniable the essential credit peril of the corporate.
Danger analysis incorporates liquidity and saltiness analysis. Liquidity analysis intends to
explore whether the corporate has abundant liquidity to satisfy its responsibilities once it's
normal. a common system for separating liquidity chance is to invest noteworthy energy in
degree relations like current ratio and interest consideration. pay analysis is in addition helpful.
monetary condition analysis is highlighted separating whether an affiliation has been reinforced
so it will continue on through a proportion of loss or loss. a typical system for separating
bankruptcy peril is to have commonsense involvement with ratios like worth and elective ratios
of capital structure as a part of total capital. separated association are habitually assessed
maintained risk analysis, that is, an assessment on chance called artificial rating.

There are no speculative measures for risk size relations like current ratio, interest incorporation
and worth offer. it's as such essential to check them with business midpoints after some time. If
an affiliation joins a higher worth enormity association than the business, it's thought regarding
less unsafe if it's overall. Furthermore, if the worth degree association creates after some time,
this is consistently a genuine sign for the risk of section 11.

1.2) Analysis of profitableness implies the analysis of please capital, for exAZe please esteem,
ROE, spread out as salary disconnected by ordinary worth. please Equity, ROE: ROE = RNOA +
(RNOA - NFIR) * NFD/E, wherever RNOA is that the please internet operational assets, NFIR
internet cash charge per unit, NFD internet cash commitment and E esteem. during this strategy,
the beginning stages of ROE are regularly handled.

Rather than elective ratios, please capital fuses a speculative benchmark, conjointly insinuated as
cost - the perfect please capital. for exAZe, the please esteem, ROE, are much of the time
appeared differently in relation to the perfect please esteem, kE, as quantifiable, for exAZe, by
the capital quality valuation model. In case ROE WACC, wherever WACC is that the weighted
expense of capital), the firm are financially reasonable at whatever point all through the enormity
association analysis total. the corporate makes cost for its houseowners.

19
Bits of information from accounts analysis are routinely wont to figure and study credit peril and
add cost to an association's worth. for exAZe, if reserves analysis finds that the best execution
ROE - kE> zero will increase all through the proportion of monetary statement analysis, this
exAZe could in like manner be extrapolate inside what's to come. As speculation suggests,
sooner or later genuine forces work - and ROE is made a beeline for kE.
The financial arrangement (or cash Report) is that the official record of the cash activities of a
business, individual or unmistakable component. In British English — similarly as uk association
law
— the spending plan is normally remarked as A record, anyway the term financial arrangement
is particularly utilized by clerks.

For a business concern, all relevant cash data is introduced in an incredibly sorted out and clear
to know gathering. they generally includes four basic cash statements, similarly as management
discussion and analysis:
1. Statement of monetary Position: conjointly called the record, reports on the assets,
liabilities and proprietorship equity of a corporation at a selected time.

2. Comprehensive financial increment Statement: conjointly insinuated as Profit and Loss

Statement (or "P&L"), a declaration of financial expansion, expenses and profits for a
proportion of your time. Profit and Loss Statement gives data concerning the association's
operation. These embody different costs gained inside the arrangement and process
condition.

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• Used cash reports square measure required by house proprietors and administrators to
choose central business decisions that impact its proceeded with operations. cash analysis
is done on these statements to make management with an extra cautious valuation for
estimations. These statements square measure utilized as a touch of the management's
yearly report back to investors.

• These reports with Labor laborers square measure expected to discuss exchange
concurrences with the management (CBA), authority's associations, or their
remuneration, movement and rankings.

• Prospective investors use cash statements to evaluate the possibility of investment inside
the business.

Cash analysis is routinely utilized by investors and orchestrated by specialists (financial

operators), so equipping them with the reason behind creation investment decisions.

• Working cash foundations (banks and specific loaning affiliations) use them to see
whether to give a corporation with the most ground breaking assets or to develop perceive
protections, (for exAZe, a semi constant loan or debentures) to progress and distinctive
indispensable costs.

• Financial statements square measure required by government working environments

(charge specialists) to affirm ownership and precision of expenses and various duties that
the corporate expresses andpays.

• Business venders World Health Organization slacken up credit to the business may
require cash statements to review the business' believability.

The media and in addition the general masses are intrigued about cash statements for various
reasons.

21
Government monetary statements

The standards for recording, estimation and indicating government monetary statements may
take issue from those required by business and noncommercial affiliations. they will be utilized
in any of 2 accounting techniques: step-up Accounting, or cash Accounting, or a mix of each
(OCBOA). a whole course of action of records chart that is stunningly totally extraordinary
comparable to a profit-based business outline is also used.

Financial Statements of noncommercial Organizations

Financial statements revealed by non-profit affiliations, honorable aim, and colossal NGOs
square measure more straightforward than income driven affiliations. regularly they need a
record And a "statement of operations" (posting financial expansion and costs), similar to a
"profit and loss statement" for profit. Great aim inside the u. s. square measure expected to point
out their financial expansion and web assets (equity) in 3 characterizations: unhindered
(available for general use), immediately bound (to be discharged when the patron's time or profit
obliges square measure met) and for good limited (incessantly, inside the gift) put).

VARIOUS TECHNIQUES OF FINANCIAL ANALYSIS

Comparative Financial Statements: Comparative financial statements can't avoid being

statements of financial position of a business proposed to give time perspective to the to the
consideration of various segments of financial position encapsulated in such statements.
Comparative statements reveal the going with:

(i) Absolute data (Money worth or rupee entireties)

(ii)Increase or diminishing in out and out data (in terms of cash regards)

(iii) Increase or reduction in total data (in terms of rate)

Comparative balance sheets, comparative pay statements and comparativstatements of

changes in financial position can be prepared. American Institute of Certified Public
accountants have explained the utility of setting up the comparative statements, along these
lines:

" The presentation of comparative statements is yearly and various reports update the
handiness of such reports and brings out more clearly the nature and exAZe of current

22
changes impacting the enterprise. Such presentation complement the way that statements for
a movement of period are verifiably dynamically important that those of a lone period and
that the records of one period are all things considered a segment of what is essentially a
steady history. In any one year, it is expectedly needed that the balance sheet, the Income
statement and the overabundance statement be given for at any rate one going before years
similarly with respect to the current years".

Customary size Statements: The figures showed up in financial statements viz. Profit and loss
record and balance sheet are changed over to rates so as to set up each part to the total figure
of the statement and hypotheses statement are called ordinary size statements. These
statements are useful in analysis of the presentation of the association by inspecting each
individual segment to the total figure of the statement. Speculations statements will moreover
help with examining the introduction over years and besides with the figures of the genuine
firm in the business for making analysis of relative profitability.

ExAZe Analysis: In design analysis ratios different things are determined for various periods
for relationship purposes. ExAZe analysis should be conceivable by design rates, design
ratios and reasonable and diagrammatic depiction. The exAZe analysis is a fundamental
strategy and does exclude dreary estimations. In any case, assessments would be significant
exactly when accounting approaches are uniform and worth level changes don't present a
turned picture of miracle. The exAZe analysis passes on a predominant perception of
management's perspectives, approaches and inspirations, which have boughabout the
movements revealed consistently. As needs be method is a useful logical contraption for the
management since by swap of rates for enormous totals, the terseness and importance are
cultivated. In any case design rates are not determined unmistakably for noteworthy things
since the purpose behind existing is to highlight critical changes.

Store flow analysis: Fund Flow Statement: Fund flow analysis reveals the modifications in
working capital position. Working capital is of head essentialness in any business so this kind
of an analysis winds up being amazingly significant. As showed by Anthony," The assets

23
Flow Statement depicted the sources from which the additional assets were determined and
the usage to which these assets were put". Assets flow statements help the financial analyst in
having love ordered analysis and understanding the changes in the transport of assets
between two balance sheet periods. The statement reveals the wellsprings of assets and their
application for different purposes. Store flow analysis has become a critical mechanical
assembly for any financial master; credit giving associations and financial managers.

Cash Flow Analysis: A cash flow statement outlines the modifications in cash position
beginning with one period then onto the following. It shows the inflow and outflow of cash
and helps the management in making game plans for present moment. A normal cash flow
statement engages the management to gain proficiency with the availability of cash to meet
business duties. This statement is useful for transient orchestrating by management.

Ratio Analysis: Ratio analysis is noteworthy informative instrument to measure execution of

an affiliation .The ratio analysis centers around the interrelationship among the figures
appearing in the financial statements. The ratio analysis urges the management to separate
the past display of the firm and to make further projections. Ratio analysis grants contributed
people like investors, investors, loan managers, government and specialists to make an
appraisal of explicit pieces of affiliation's introduction. It is a methodology of connection of
one figure against another, which make a ratio, and the assessment of the ratios to make
authentic analysis about the quality and inadequacy of affiliation's operations. This
instrument of financial has been inspected in detail in next part.

Worth Added Analysis: 'Worth Added' is a basic and noteworthy estimation to condemn the
introduction of an enterprise. It exhibits the net worth or wealth made by the maker during a
predetermined period. No enterprise can suffer or create in case it fails to deliver wealth. An
enterprise can get by without making profits yet can't make due without including regard.

'Worth included' is delineated as " the wealth made by the itemizing substance by its own and
its delegates' undertakings and includes pay, remuneration, accidental preferences, premium,
profit, cost, deterioration and net profit (Retained).

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Types of Financial Analysis\ On the reason of Material Used: The analysis can be of following
sorts: Inside Analysis: It shows the analysis finished by those social affairs who have the
passageway to the book and records of the association. Typically, it shows basically the analysis
finished by management of the association to enable the dynamic strategy. This may similarly
show the analysis finished in genuine or legitimate issues where the get-togethers which are not a
bit of management of the association may have the passageway to the books and records of the
association.

External Analysis: It shows the analysis did by those social occasions who don't have the
passageway the books an\d records of the association. This may incorporate the analysis did by
leasers, approaching investors, and various outcasts. Ordinarily, those untouchables are required
to depend on the dispersed financial statements. Taking everything into account, the significance
and exactness of the external analysis is limited, anyway a segment of the continuous alterations
of the principles like Companies Act, 1956 hamait required for the associations to reveal most
extraordinary information relating to the operations and financial position, in order to support the

Level Analysis: The even analysis involves the examination of the behavior of all of the thing in
the financial statement-that is, its extension and reduction with the section if time. It is in any
case called dynamic sort of analysis since it shows the changes, which have taken manor. The
assessment of the things is made throughout the year, , the eyes look at the comparative analysis
is at the level , from now on the analysis id termed as even analysis.

Vertical Analysis: In vertical analysis an examination is made of the quantitative association

between he various things in the financial statements on a particular date. It's a static kind of
analysis or examination of position. Such an analysis is significant in taking a gander at the
display of a couple of associations in a comparative social event or divisions or office in a
comparative association. Since this analysis depends upon the data for one period, this isn't
useful for a proper analysis of the association's financial position. It is moreover called 'Static'
analysis for what it's worth as frequently as conceivable used for implying ratio made on the date
or for one accounting period.

25
 Analysis ought to be conceivable both equally and vertically. Surely one sort of analysis is
divided in itself. Both are comparing to each other. Both these analysis structure the establishment of the
strategy for financial statement analysis.

FINANCIAL STATEMENTS ANALYSIS

The financial statements are pointers of the two basic components:

1. Profitability and

2. Financial AZeness

Analysis and interpretation of financial statement along these lines, suggests such a treatment of the
information contained in the Income Statement and Balance Sheet so as to deal with the expense of full
determination of the profitability and financial sufficiency of the business.

BALANCE SHEET:-

A balance sheet is the basic financial statement. It presents data on an association's financial conditions on
a particular date, considering appears and generally recognized principles of accounting. The aggregate
showed up in the statements on the balances, at the time it was set up in the various records recorded in the
association's accounting records, is seen as a urgent accounting statements. The compensation statement
summarizes the business operations during the specific time period and shows the delayed consequences
of such operations as net pay or net loss. By taking a gander at the compensation statements of dynamic
periods, it is possible to determine the progression of a business. A statement is improved by a
comparative statement of the cost of goods manufactured and sold. It is set up at standard ranges and
shows what a business enterprise has and what it owes. It gives information which helps in the assessment
of the three guideline parts of an enterprises position – its profitability, liquidity and dissolvability. Of
these, the later two are stressed over an enterprises ability to meet its liabilities, while profitability is most
significant as a rule extent of its financial conditions, the balance sheet is a statements of assets, liabilities
capital on determined date. It is thus a static statement, exhibiting assets and the assignment of these assets
to various characterizations of bit of leeway. It is so to state financial photography subsidize. Liabilities
show the bodies of evidence against its assets.

26
The investors equity includes the total owner vehicle ensures in a firm. This case consolidates net worth of
investors equity and supported stock. The standard association balance sheet statement of assets regarded
dependent on their one of a kind cost and the strategies by which they have been financed by its investors,
banks, suppliers and by the support of compensation.

This gadget encounters the going with restrictions:

1. A balance sheet gives only a limited picture of circumstance of an association, since it
Fuses only those things which can be conveyed in monetary terms.

2. The characteristics showed up on the balance sheet for a part of the assets are infrequently exact

3. A balance sheet acknowledge that the authentic estimation of cash remain consistent.

4. In light of balance sheet, it is past the domain of creative mind to hope to reach any final product about
the achievement of an enterprise later on. It is a point by point statement of the financial structure of a
business.
INCOME STATEMENT

The delayed consequences of operations of a business for some time are presented in the

compensation statement.

From the accounting point of view, a compensation statement is subordinate to the balance sheet

because the past just presents the nuances of the modifications in the held profit in balance sheet

accounts. In any case, if basic wellspring of financial information a pay statement summarizes the

outcomes of business operations during unequivocal period and shows as net compensation or net

loss by taking a gander at pay statements for dynamic periods, it is possible to watch the headway

of the business the statement is improved by a comparative statement of cost of goods made and

sold. It summarizes firms operating results for the past period.

Comparative balance sheet

27
Financial statements are on occasion adjusted for office of examination. The effects of the

conductor

Businesses are reflected in its balance sheet by changes in assets and liabilities and in its net worth.

The comparative compensation statement presents a review of operating activities in business. A

comparative balance sheet shows effect of the operations on the assets and liabilities. The

demonstration of presenting comparative statement in the yearly report is right now ending up

being wide spread since it is a relationship between balance sheet and pay statement.

Considerations like worth levels and accounting strategies are given due weight at the hour of

assessment.

Customary size statements

The rate balance sheet is as often as possible known as the standard size balance sheet. Such
balance

sheet are, from a wide point of view ratio analysis general things in the profit and loss accounts
and in the

balance sheet are conveyed in efficient rates when imparted in the structure, the balance

sheet and profit and loss account are implied as a common size statement. Such statements

are useful in comparative analysis of the financial position in operating results of the business.

Cash flow statement

A cash flow statement is the financial analysis of the net pay or profit resulting to including book
cost things which at present don't use cash; for exAZe, degrading, utilization and amortization.

28
Salary things, which don't starting at now give holds, are to be deducted. A gross cash flow is net
profit after appraisal notwithstanding course of action for deterioration. A net cash flow is
appeared resulting to deducting profits from the gross cash flow. The cash flow is gigantic
considering the way that it addresses the genuine proportion of cash available to the business.

RATIO ANALYSIS
Financial ratio analysis is the figuring and relationship of ratios which are gotten from the
information in an association's financial statements. The level and unquestionable exAZes of these
ratios can be used to make inductions about an association's financial condition, its operations and
drawing in quality as an investment.

Financial ratios are determined from in any event one pieces of information from association's
financial statements. For exAZe, the "gross edge" is the gross profit from operations isolated by
the total arrangements or salaries of an association, conveyed in rate terms. In detachment, a
financial ratio is a worthless scrap of information. In setting, regardless, a financial ratio can give a
financial agent a sensational picture of an association's situation band the exAZes that are making.

A ratio expands utility by connection with other data and standards. Taking our model, a gross
profit edge for an association of 25% is insignificant without any other individual. In case we
understand that this current association's opponents have profit edges of 10%, we understand that it
is more profitable than its industry peers which are extremely positive. If we furthermore
understand that the obvious exAZe is upwards, for exAZe has been extending reliably all through
the past relatively few years, this would in like manner be an incredible sign that management is
executing convincing Business, courses of action and philosophies.
Classification of Ratios
Financial ratio analysis incorporates the calculation and relationship of ratios which are gotten
from the information given in the association's financial statements. The recorded exAZes of these
ratios can be used to make surmisings about an association's financial condition, its operations and
its investment drawing in quality.

29
Financial ratio analysis bundles the ratios into classes that illuminate us concerning the different
highlights of an association's financial circumstance. A part of the arrangements of ratios are
delineated underneath:

• Liquidity Ratios give a picture of an association's transient financial situation or dissolvability

• Turnover Ratios show how profitable an association's operations and how well it is using its
assets.

• Solvency Ratios show the long term profitability of the association.

Liquidity Ratios

Liquidity Ratios can't avoid being ratios that tumble off the Balance Sheet and therefore measure

the Liquidity of the association as on a particular day for instance the day that the Balance Sheet

was prepared. These ratios are critical in assessing the limit of an association to meet the two its

current second and long term responsibilities.

1. Current Ratio

2. Liquid Ratio

3. Net working capital ratio

1. Current Ratio:

An indication of an association's ability to meet transient commitment responsibilities; the higher

the ratio, the more liquid the association is. Current ratio is equal to current assets divided by

current liabilities. If the current assets of an association are more than twofold the current

liabilities, by then that association is normally considered to have incredible transient financial

quality. In case present liabilities outperform current assets, by then the association may have

issues meeting its transitory responsibilities.

30
2. Quick Ratio:

A sign of an affiliation's capacity to meet transient duty duties; the Liquid ratio is in any case

called 'lively' or 'Fundamental analysis 'ratio. Liquid assets suggest assets which are quickly

convertible into cash. Current Assets other stock and prepaid expenses are considered as smart

assets. The ideal liquid ratio recognized 'norm' for liquid ratio '1'.

3. Net Working Capital Ratio

Working Capital is more an extent of cash flow than a ratio. The eventual outcome of this

figuring must be a positive number. Associations see Net Working Capital after some an ideal

opportunity to determine an association's ability to atmosphere financial crises. Loans are

routinely joined to least working capital essentials.

31
 CHAPTER-3
COMPANY PROFILE

32
 COMPANY PROFILE
Amazon.com, Inc. (/ˈæməzɒn/ AM-ə-zon), is an American multinational technology
company based in Seattle, Washington, which focuses on e-commerce, cloud computing, digital
streaming, and artificial intelligence. It is considered one of the Big Five companies in the U.S.
information technology industry, along with Google, Apple, Microsoft, and Facebook. The
company has been referred to as "one of the most influential economic and cultural forces in the
world", as well as the world's most valuable brand.

Amazon was founded by Jeff Bezos in Bellevue, Washington, on July 5, 1994. The company
started as an online marketplace for books but expanded to sell electronics, software, video
games, apparel, furniture, food, toys, and jewelry. In 2015, Amazon surpassed Walmart as the
most valuable retailer in the United States by market capitalization. In 2017, Amazon acquired
Whole Foods Market for US$13.4 billion, which substantially increased its footprint as a
physical retailer. In 2018, Bezos announced that its two-day delivery service, Amazon Prime,
had surpassed 100 million subscribers worldwide.

Amazon is known for its disruption of well-established industries through technological

innovation and mass scale. It is the world's largest online marketplace, AI assistant provider,
live-streaming platform and cloud computing platform as measured by revenue and market
capitalization.[22] Amazon is the largest Internet company by revenue in the world. It is the
second largest private employer in the United States[24] and one of the world's most valuable
companies.

Amazon distributes downloads and streaming of video, music, and audiobooks through its Prime
Video, Amazon Music, Twitch, and Audible subsidiaries. Amazon also has a publishing arm,
Amazon Publishing, a film and television studio, Amazon Studios, and a cloud computing
subsidiary, Amazon Web Services. It produces consumer electronics including Kindle e-readers,
Fire tablets, Fire TV, and Echo devices. Its acquisitions over the years include Ring, Twitch,
Whole Foods Market, and IMDb. The company has been criticized for various practices
including technological surveillance overreach, a hyper-competitive and demanding work
culture,[26] tax avoidance, and for being anti-competitive.

33
HISTORY :-

Jeff Bezos founded Amazon in July 1994. He chose Seattle because of technical talent as
Microsoft is located there.[30] In May 1997, the organization went public. The company began
selling music and videos in 1998, at which time it began operations internationally by acquiring
online sellers of books in United Kingdom and Germany. The following year, the organization
also sold video games, consumer electronics, home-improvement items, software, games, and
toys in addition to other items.

In 2002, the corporation started Amazon Web Services (AWS), which provided data on Web site
popularity, Internet traffic patterns and other statistics for marketers and developers. In 2006, the
organization grew its AWS portfolio when Elastic Compute Cloud (EC2), which rents computer
processing power as well as Simple Storage Service (S3), that rents data storage via the Internet,
were made available. That same year, the company started Fulfillment by Amazon which
managed the inventory of individuals and small companies selling their belongings through the
company internet site. In 2012, Amazon bought Kiva Systems to automate its inventory-
management business, purchasing Whole Foods Market supermarket chain five years later in
2017.

BOARD OF DIRECTORS

Amazon founder Jeff Bezos in 2016

As of September 2020, the board of directors is:[32]

Jeff Bezos, President, CEO, and Chairman

Keith B. Alexander, CEO IronNet Cybersecurity, former NSA Director

Rosalind Brewer, Group President, and COO, Starbucks

Jamie Gorelick, partner, Wilmer Cutler Pickering Hale, and Dorr

Daniel P. Huttenlocher, Dean of the Schwarzman College of Computing at the Massachusetts

Institute of Technology

Judy McGrath, former CEO, MTV Networks

34
Indra Nooyi, former CEO, PepsiCo

Jon Rubinstein, former Chairman, and CEO, Palm, Inc.

Thomas O. Ryder, former Chairman, and CEO, Reader's Digest Association

Patty Stonesifer, President, and CEO, Martha's Table

Wendell P. Weeks, Chairman, President, and CEO, Corning Inc.

Merchant partnerships

In 2000, U.S. toy retailer Toys "R" Us entered into a 10-year agreement with Amazon, valued at
$50 million per year plus a cut of sales, under which Toys "R" Us would be the exclusive
supplier of toys and baby products on the service, and the chain's website would redirect to
Amazon's Toys & Games category. In 2004, Toys "R" Us sued Amazon, claiming that because
of a perceived lack of variety in Toys "R" Us stock, Amazon had knowingly allowed third-party
sellers to offer items on the service in categories that Toys "R" Us had been granted exclusivity.
In 2006, a court ruled in favor of Toys "R" Us, giving it the right to unwind its agreement with
Amazon and establish its own independent e-commerce website. The company was later
awarded $51 million in damages.

35
 CHAPTER-4

DATA ANALYSIS

INTERPRETATION

36
 DATA ANALYSIS

CURRENT RATIO: CURRENT ASSETS / CURRENT LIABILITIES

YEARS CURRENT ASSETS CURRENT LIABILITIES RATIO

2016 83,402,000 64,117,000 1.30
2017 131,310,000 103,601,000 1.27
2018 162,648,000 119,099,000 1.37
2019 225,248,000 163,188,000 1.38

RATIO
1.40 1.38
1.38 1.37
1.36
1.34
1.32 1.30
1.30
1.28 1.27
1.26
1.24
1.22
1.20
2016 2017 2018 2019

RATIO

INTERPRETATION: The Above Graph Shows Its Represents current ratio addresses.

Financial quality of the relationship here current ratio inactive ratio 2:1 exhibits association
financial execution of the hour of the financial from 2016 to 2019 here we assessments 2019 has
getting profits(1.38) when differentiate and prior years.

37
 1. INVENTORY TURNOVER RATIO IS CALCULATED USING THE
FOLLOWING FORMULA:

YEARS COST OF GOODS SOLD AVERAGE INVONTORY RATIO

2016 88,265 135,987 0.65
2017 111,934 177,866 0.63
2018 139,156 232,887 0.60
2019 165,536 280,522 0.59

RATIO
0.66
0.65
0.65
0.64
0.63
0.63
0.62
0.61
0.60 0.60
0.59
0.59
0.58
0.57
0.56
2016 2017 2018 2019

RATIO

INTERPRETATION: - Stock Turnover Ratio Is Used To Assess How

Efficiently A Business Is Managing Its Inventories. From 2016 to 2019 ITR ratios
generally raised in the year 2016 (0.65).

38
 2. NETWORKING CAPITAL RATIO:-

YEARS NET WORKING CAPITAL CAPITAL EMPLOYED RATIO

2016 1,965,000 26,979,000 0.07
2017 2,314,000 52,452,000 0.04
2018 6,710,000 67,044,000 0.10
2019 8,522,000 85,474,000 0.10

0.12
0.10 0.10
0.10
0.08 0.07

0.06
0.04
0.04
0.02
0.00
2016 2017 2018 2019

RATIO

INTERPRETATION: Working Capital is more an extent of cash flow than a ratio. The

result of this figuring must be a positive number. Associations see Net Working Capital after

some an ideal opportunity to determine an association's ability to atmosphere financial crises.

Loans are consistently joined to least working capital essentials.

39
 3. EPS:

YEARS NET PROFIT NO SHARES ISSUES RATIO

2016 2,371 474 5.00

2017 3,033 480 6.32

2018 10,073 487 20.68

2019 11,588 494 23.46

RATIO
25.00 23.46
20.68
20.00

15.00

10.00
6.32
5.00
5.00

0.00
2016 2017 2018 2019

RATIO

INTERPRETATION:
The above diagram shows salary per share (EPS) of Astra microwave here 7.43 has most vital
shares getting profits of the association and it depicts Net profit isolated by the amount of typical
shares it has remarkable.

40
 4. EBIT
YEARS 2019 2018 2017 2016

EBITDA 30,457 25,330 13,517 10,406

EBITDA
Growth 20.24% 87.39% 29.90% 29.25%

EBIT 14,742 12,717 - 4,353

12000
10,406
10000

8000

6000
4,353
4000
2,016
2000
0
0

INTERPRETATION:
The above graph shows PBT its addresses high profit before charge Profit before interest charge
(EBIT) is an extent of an association's profitability that looks at the profits made before any
appraisal is paid. It facilitates all the association's costs, which fuse operating and interest costs,
against its earnings yet maintains a strategic distance from the portion of individual obligation.

41
 CHAPTER-5
FINDINGS, SUGGESTIONS, CONLUSIONS

42
 FINDINGS,
I found that financial assistance of an association has kept up the business

I acknowledge current ration gauges financial profitability of the association.

I thought about financial execution using liquidity and market adequacy ratios.

From 2016 to 2019 ITR ratios generally raised in the year 2016 (0.65).

In the year 2017working capital ratio delineate positive (0.04).

Earnings per share (EPS) of Astra microwave here 7.43 has most essential shares getting
profits of the association and it depicts Net profit isolated by the amount of
fundamental shares it has amazing.

PBT its addresses high profit before charge Profit before charge (PBT) is an extent of an
association's profitability that looks at the profits made before any obligation is
paid

43
 SUGGESTIONS
1. The Company Should Provide Notes To Explain Items Not Tallying With The Profit And
Loss And Balance Sheet In The Annual Report.

2. Instead of disclosing the joined flows of borrowers and loans drives as

decrease/(increase) in return and diverse receivables, their distinctive exposure will be
dynamically significant.

3. Globalization of economies and the essential of shares from investors in capital market,
different and mentioning group to the association, need an obvious and through and
through in information about the association's financial position in Annual report.

1. Comparison of major and debilitated EPS to be associated with Annual report to predict
the EPS acceptable in future.

44
 CONCLUSIONS

The financial position of AMAZON INC (AZ)

is okay with a savvy mix of commitment and equity. The general assessment of
financial statement indicates successful utilization of the investments, loans and
advances. The profitability of the association emits an impression of being extraordinary,
as chose by increase accessible for later and overflow.

The management discussions and analysis by Director's report and evaluations

imparted by Auditor's report through financial statements is substantial and sensible view
according to the game plans of the associations Acts, and Accounting measures.

The general financial position of the association radiates an impression of being

more than pleasant.

45
 BALANCE SHEET FOR AMAZON.COM, INC. (AMZN)

Balance Sheet Expand 2019 2018 2017 2016

83,402,00
Total Assets 225,248,000 162,648,000 131,310,000 0
Total Liabilities Net Minority 64,117,00
Interest 163,188,000 119,099,000 103,601,000 0
19,285,00
Total Equity Gross Minority Interest 62,060,000 43,549,000 27,709,000 0
26,979,00
Total Capitalization 85,474,000 67,044,000 52,452,000 0
19,285,00
common stock /equity 62,060,000 43,549,000 27,709,000 0
Capital Lease Obligations 39,791,000 16,292,000 13,183,000 7,519,000
14,647,00
Net Tangible Assets 43,257,000 24,891,000 10,988,000 0
Working Capital 8,522,000 6,710,000 2,314,000 1,965,000
26,979,00
Invested Capital 85,474,000 67,044,000 52,452,000 0
14,647,00
Tangible Book Value 43,257,000 24,891,000 10,988,000 0
15,213,00
Total Debt 63,205,000 39,787,000 37,926,000 0
Net Debt - - 4,221,000 -
Share Issued 521,000 514,000 507,000 500,000
Ordinary Shares Number 498,000 491,000 484,000 477,000
Treasury Shares Number 23,000 23,000 23,000 23,000

46
 INCOME STATEMENT

Fiscal year is January-December. All values USD Millions. 2019 2018 2017 2016
Sales/Revenue 280,522 232,887 177,866 135,987
Sales Growth 20.45% 30.93% 30.80% 27.08%
Cost of Goods Sold (COGS) incl. D&A 165,536 139,156 111,934 88,265
COGS excluding D&A 149,821 126,543 102,737 82,212
Depreciation & Amortization Expense 15,715 12,613 9,197 6,053
Depreciation 15,150 12,138 8,831 5,766
Amortization of Intangibles 565 475 366 287
COGS Growth 18.96% 24.32% 26.82% 23.19%
Gross Income 114,986 93,731 65,932 47,722
Gross Income Growth 22.68% 42.16% 38.16% 34.98%
Gross Profit Margin 40.99% - - -
SG&A Expense 100,244 81,014 61,612 43,369
Research & Development 35,931 28,837 22,620 16,085
Other SG&A 64,313 52,177 38,992 27,284
SGA Growth 23.74% 31.49% 42.06% 31.62%
EBIT 14,742 12,717 - 4,353
Unusual Expense -11 131 -109 -67
Non Operating Income/Expense -9 -348 23 -144
Non-Operating Interest Income 832 440 202 100
Interest Expense 1,600 1,417 848 484
Interest Expense Growth 12.91% 67.10% 75.21% 5.45%
Gross Interest Expense 1,600 1,417 848 484
Pretax Income 13,976 11,261 3,806 3,892
195.87 148.21
Pretax Income Growth 24.11% % -2.21% %
Pretax Margin 4.98% - - -
Income Tax 2,374 1,197 769 1,425
Income Tax - Current Domestic 438 193 74 1,344
Income Tax - Current Foreign 1,140 563 724 327
Income Tax - Deferred Domestic 922 570 -228 85
Income Tax - Deferred Foreign -126 -129 199 -331
Equity in Affiliates -14 9 -4 -96
Consolidated Net Income 11,588 10,073 3,033 2,371
Net Income 11,588 10,073 3,033 2,371
232.11 297.82
Net Income Growth 15.04% % 27.92% %
Net Margin 4.13% - - -
Net Income After Extraordinaries 11,588 10,073 3,033 2,371
Net Income Available to Common 11,588 10,073 3,033 2,371
EPS (Basic) 22.99 20.15 6.15 4.9
227.58 292.00
EPS (Basic) Growth 14.13% % 25.51% %

47
Basic Shares Outstanding 494 487 480 474
EPS (Diluted) 22.99 20.15 6.15 4.9
227.46 292.07
EPS (Diluted) Growth 14.13% % 25.59% %
Diluted Shares Outstanding 504 500 493 484
EBITDA 30,457 25,330 13,517 10,406
EBITDA Growth 20.24% 87.39% 29.90% 29.25%
EBITDA Margin 10.86% - - -
EBIT 14,742 12,717 - 4,353

48
 BIBLIOGRAPHY:

Books:

 Cost & Management accounting byDr.S.NMajeswari .

 Financial Management by prof.I.M Pandey, Prof.Emeritus,IIMA.
 Financial accounting by T.S Reddy and A.Murthy

 Financial statement analysis by S.N Maheshwari. Financial statement

analysis by Chandra Shekhar

I collected a few information from the General Manager of AMAZON INC (AZ).

Web sites:

 www.google.com
 www.wikipedia.com
 www.investopedia.com
 www.accountingformanagement.com

49