SUMMER INTERNSHIP REPORT

ON
“FINANCIAL ANALYSIS”
AMAZON INC

1
 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.

2
 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

3
INTRODUCTION

4
 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.

5
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 comparative record.

• 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.

6
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.
7
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.
8
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.

9
• 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.

10
The media and in addition the general masses are intrigued about cash statements for various
reasons.

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)

11
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 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
12
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 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

13
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).

14
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.
15
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.

16
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.

17
 Statement of the Problem
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

18
 REVIEW OF LITERATURE

We have established that Amazon is one of the first organizations to start an online retail
business. But how does this online business function and operates? A study made by Sameer
Kumar, Jessica Eidem, and Diana Noriega look out how Amazon.com works in terms of
technicality. Amazon.com provides a variety of services to customers from music to books to
electronics. It acts as an online supermarket and has been accredited as the most reliable services
by customers worldwide. Part of Amazon's success is due to its operating system. Amazon has
assorting system where they divide their consumers into 3 categories. (Kumar, Eidem, &
Noriega,2012.

Customer: This group is attended by regular users who are there to shop online. This system
allows users to see the available prices, sales, and the expected delivery dates for the products.
This option also allows the users to subscribe to Amazon Prime. A prime member will have
more frequent discounts and will get the two-day shipping option for free. (Kumar, Eidem,
&Noriega, 2012).

Seller Customers: This option allows the user to sell their product through the Amazon website.
There is a distribution service for users who are about to sell their products. This group gets
revenue for its product in the form of a fixed fee. (Kumar, Eidem, & Noriega, 2012).3)
Developer Customers: Developer customer is for the group who are actively developing and
creating products. Amazon provides a platform for these users through their technology
infrastructure and Amazon application software. (Amazon, 2008).

Amazon's strategy to become the top service didn’t rely only on innovation. A key success to
Amazon was its multiple affiliations with different brands. Amazon throughout the years has
been known for its Merger and Acquisition activities. IMDB, Souq, Joyo, and Double Helix
Games just to name a few. These acquisitions added positively to the company's worth. As
Merger and Acquisition adds a level of synergy and diversification to the products, it breaks
wider audience. Such as the gaming community, Amazon not only bought a gaming company

19
Double Helix Games, but they also acquired Twitch in 2014, the most popular gaming streaming
service in the world. (Hong, Bhattacharyya, & Geis, 2012).

Consumers engage. Products and services like “Alexa” the voice control artificial intelligence.
Audible the online bookstore where you can listen to the audio version rather than reading.
Twitch the online gaming streaming service. These are just a few of the many services that
Amazon provides. (Robischon, 2021).

Amazon also innovates in different productions, as they also partake in manufacture. One of the
biggest Amazon manufactures is Amazon Prime Air. This massive production is a drone delivery
service, it is a work in progress; currently being tested in the United States and the United
Kingdom. However, once it's launched, the goal is to operate a GPS to fly packages to the
customers' location. No more than 30 minutes after the order has been placed. For now, the
product could only carry packages that weigh less than 5pounds. Only packages that fit in the
cargo are applicable. Amazon Prime air includes 86% of products that are being sold on the
webpage. The delivery location should be around 10 miles close to Amazon Order Fulfillment
Center. (Pandit & Poojari, 2014).

Amazon Business and Marketing Strategy: With the Amazon initiative of e-commerce, Amazon
took on losses in the late ’90s. But Jeff Bezos always knew that would be the case in the short
term. Amazon played the long run, in the beginning, they invested heavily on building the brand
equity and branding the site. Stating that “This is an investment phase for Amazon.com. We've
been straightforward with everybody from the beginning that that's our strategy” Bezos also
doubled down on this strategy, suggesting if people don’t agree with this approach, then they
should not bother investing in Amazon stock. Because that is how Amazon will always approach
things, by willing to take risks in their business decision. (Parry, 2008).

20
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 latter 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.

The investors equity includes the total owner vehicle ensures in a firm. This case consolidates net worth of
investor’s 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:

21
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

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

22
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.
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

23
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.

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

24
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.

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.

25
 DATA COLLECTION

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/

26
 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 2021, Amazon acquired
Whole Foods Market for US$13.4 billion, which substantially increased its footprint as a
physical retailer. In 2022, 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.

27
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
2021.

BOARD OF DIRECTORS

 Amazon founder Jeff Bezos in 2020

 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
 Indra Nooyi, former CEO, PepsiCo
 Jon Rubinstein, former Chairman, and CEO, Palm, Inc.
 Thomas O. Ryder, former Chairman, and CEO, Reader's Digest Association

28
  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.

29
 DATA ANALYSIS

CURRENT RATIO: CURRENT ASSETS / CURRENT LIABILITIES

YEARS CURRENT ASSETS CURRENT LIABILITIES RATIO

2020 83,402,000 64,117,000 1.30
2021 131,310,000 103,601,000 1.27
2022 162,648,000 119,099,000 1.37
2023 225,248,000 163,188,000 1.38

RATIO
1.4
1.38
1.38 1.37
1.36
1.34
1.32 RATIO
1.3
1.3
1.28 1.27
1.26
1.24
1.22
1.2
1 2 3 4

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 2020 to 2023 here we assessments 2023 has
getting profits(1.38) when differentiate and prior years.

30
 1. INVENTORY TURNOVER RATIO IS CALCULATED USING THE
FOLLOWING FORMULA:

YEARS COST OF GOODS SOLD AVERAGE INVONTORY RATIO

2020 88,265 135,987 0.65
2021 111,934 177,866 0.63
2022 139,156 232,887 0.60
2023 165,536 280,522 0.59

RATIO
0.66 0.65

0.64 0.63

0.62
0.6 RATIO
0.6 0.59

0.58

0.56

0.54
1 2 3 4

INTERPRETATION: - Stock Turnover Ratio Is Used To Assess How Efficiently A

Business Is Managing Its Inventories. From 2020 to 2023 ITR ratios generally raised in the year
2020 (0.65).

31
 2. NETWORKING CAPITAL RATIO:-

YEARS NET WORKING CAPITAL CAPITAL EMPLOYED RATIO

2020 1,965,000 26,979,000 0.07
2021 2,314,000 52,452,000 0.04
2022 6,710,000 67,044,000 0.10
2023 8,522,000 85,474,000 0.10

RATIO
0.1 0.1
0.1
0.09
0.08 0.07
0.07
RATIO
0.06
0.05 0.04
0.04
0.03
0.02
0.01
0
1 2 3 4

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.

32
 3. EPS:

YEARS NET PROFIT NO SHARES ISSUES RATIO

2020 2,371 474 5.00

2021 3,033 480 6.32

2022 10,073 487 20.68

2023 11,588 494 23.46

RATIO
23.46
25 20.68

20
RATIO
15

10 6.32
5
5

0
1 2 3 4

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.

33
 4. EBIT
YEARS 2023 2022 2021 2020

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

35,000
30,457
30,000
25,330
25,000

20,000
EBITDA
14,742 EBITDA Growth
15,000 12,717 13,517
EBIT
10,406
10,000

5,000 4,353

0 1 0 0 0
0
1 2 3 4

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.

34
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 2020 to 2023 ITR ratios generally raised in the year 2020 (0.65).
 In the year 2021working 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.

35
 SUGGESTIONS
 The Company Should Provide Notes To Explain Items Not Tallying With The Profit And
Loss And Balance Sheet In The Annual Report.
 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.
 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.
 Comparison of major and debilitated EPS to be associated with Annual report to predict the
EPS acceptable in future.

36
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.

37
 BALANCE SHEET FOR AMAZON.COM, INC. (AMZN)

Balance Sheet Expand 2023 2022 2021 2020

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

38
 INCOME STATEMENT

Fiscal year is January-December. All values USD Millions. 2023 2022 2021 2020
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% %

39
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

40
 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

41