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Amazon inc..edited

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holythug184
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Amazon Inc.

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Amazon Inc. is an excellent choice for my research project, and the reason for choosing

this company is how well it has poised itself in the e-commerce platform. Several factors align

well with the evolving landscape of consumer behavior and technological advancements.

Amazon has a user-friendly platform that supports a vast product range and efficient delivery

mechanisms, thus contributing to its market dominance. Over time, consumer preferences have

shifted towards online shopping, wider product availability, and typically lower prices. It also

continually invests in technological advancements to improve its services, and innovations like

one-click ordering and AI-driven recommendations for seamless shopping experiences have

reinforced its appeal. Amazon operates across numerous countries, supporting to expand

globally, thus tailoring its services to local markets while maintaining a global infrastructure.

The financial highlights, such as net income, total assets, and Return on Equity %, have

been substantial, often reaching billions of dollars annually. Starting with net income for the year

2021, it was $33.364 B, a 56.41% increase from 2020. In 2022, the net income was $-2.722B,

which is a 108.16% decline from 2021, and for the twelve months ending June 30, 2023, it rose

to $ 13.072B, a 12.62% increase year-over-year. The company’s total assets are the sum of all

assets on a balance sheet. Amazon's total assets ad from 2021 were $ 420.549B, a 30.93%

increase from 2020. In 2022, the number of assets rose to $462.675B, indicating a 10.02%

increase from 2021, and for the quarter ending June 30, 2023, the total assets were $477.607B, a

13,97% increase year-over-year. Lastly, the Return on Equity (ROE) % is the amount of net

income returned as a percentage of shareholder's equity. Return on equity measures a company's

profit in share and has been notably high, often surpassing 20% in recent years, indicating the

increased efficiency in generating profits from shareholders' investments. In 2021, shareholder’s

equity ranged from $103.32B to $120.56B, marking a 30% Return on equity. In 2022, the ROE
fluctuated due to the negative net income and negatively impacted the yearly average ROE

despite the positive gain for the previous quarters; thus, it was around -1.98%. Similarly, in 2023,

ROE fluctuated with varying net incomes and shareholder's equity, making the annual ROE

stand at 8.62%.

References:

Jing, Y., & Li, X. (2023). Financial and Marketing Strategy Analysis of Amazon. Frontiers in

Business, Economics and Management, 7(3), 319-323.

https://doi.org/10.54097/fbem.v7i3.5599

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