Question

Using 2016 & 2017 financial statements for Home Depot and Amazon stocks, prepare two financial ratios...

Using 2016 & 2017 financial statements for Home Depot and Amazon stocks, prepare two financial ratios for each of the following categories:. liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year. What challenges, strengths, or weaknesses do you see? Please be articulate.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Financial Ratios of Amazon and Home Depot for the Financial year 2017 and 2016:

File Home InsertPage LayoutFormulas DataReview View DeveloperNitro Pro8 5 EX 11 A Wrap Text Copy в 1 u .田.焏, 습· 掴Merge & Center. % ,-28鼎 Conditional Format Cel Insert Delete Format Formatting as Table Styles ! Sort & Find & 2 ClearF Select Editing Format Painter Clipboard Font Alignment Number Cells Home De Amazon 2017 2016 Particulars 2017 201 Current Ratio Debt Equity Ratio Gross Margin 1.04 1.04481.1691 1.2541 18.58875.4468 37.0684 35.0931 34.0482 34.1593 2.3085 3.0782 14.549514.1942 1.70521.7435 8.5527 8.4117 1.35461.6305 .2662.2016 Turnover Ratio 6.9754 7.7013 5.2203 4.9631 0945912.2945 593.5351 183.6372 19.380618.5193 0.893 0.3 Mar Net Profit Margin Asset Turnover Ratio ROE ROA 12 13 2.3098 2.842 17 20 21 25 14 ㅔ トト1 | Sheet1 , Sheet2 . Sheet3 / Sheet4 . SheetS | Sheet6 Ready

Strengths of Amazon

  • Amazon Inc. is the largest online retailer overall the world with highest market share in the industry.
  • The services offered by amazon through AWS, Amazon marketplace , Amazon prime etc. creates benefits for each other.

Strengths of Home Depot

  • Company has strengths in terms of diversification, Product Portfolio and Operational Areas.
  • Company constantly focuses on cost saving, productivity enhancing technology etc.

Weaknesses of Amazon

  • There is a threat of fake review by third party due to which sales of amazon gets decreased and competitor's sales gets increased.
  • Online retail business is an emerging market in many developing country which creates threats due to entry of competitors.

Weaknesses of Home Depot

  • Company's biggest drawback is that, it is highly dependent on macroeconomic factors and its performance is highly related with performance of US Economy.

"If you have any Query, then please put it in the comment box."

Add a comment
Know the answer?
Add Answer to:
Using 2016 & 2017 financial statements for Home Depot and Amazon stocks, prepare two financial ratios...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Please select ANY two stocks and determine their free cash flow from 2017 and 2018. (you...

    Please select ANY two stocks and determine their free cash flow from 2017 and 2018. (you can find the free cash flows in Yahoo Finance). What inference can you draw from the companies’ free cash flow? Please present your findings in a table. Using the information and formulas from your textbook, please prepare two financial ratios for each stock, using the 2017 and 2018 financial statements, to include: liquidity ratios, asset management ratios, and profitability ratios. You should have a...

  • In your own words, identify two different stock exchanges in the United States. Describe the similarities...

    In your own words, identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges. Using the two stocks you identified, determine the free cash flow from 2015 and 2016. What inference can you draw from the companies’ free cash flow? Using the 2017 and 2018 financial statements for both stocks, prepare two financial ratios for each of the following categories: liquidity...

  • Directions: Answer the following questions on a separate document. Explain how you reached the answer, or...

    Directions: Answer the following questions on a separate document. Explain how you reached the answer, or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above. A. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges. B. Using the two stocks you identified, determine the free...

  • Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2016 for...

    Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. As with many retail companies, The Home Depot labels the period “Fiscal 2016” even though it ends in the 2017 calendar year. The label “Fiscal 2016” is appropriate because Fiscal 2016 includes 11 months from the 2016 calendar year. The Home Depot explains its choice of fiscal period in Note 1 to...

  • Ch11 FFI Help Save & Exit 1 Refer to the financial statements of The Home Depot...

    Ch11 FFI Help Save & Exit 1 Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016 to January 29, 2017. As with many retail companies, The Home Depot labels the period "Fiscal 2016 even though it ends in the 2017 calendar year. The label "Fiscal 2016" is appropriate because Fiscal 2016 includes 11 months from the 2016 calendar year....

  • Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2016 for...

    Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017 Required: 1. What amount of Net Sales does the company report during the year ended January 29, 2017? $32,313 $62,282 $7,957 $94,595 2. Assuming that Cost of Sales is the company's term for Cost of Goods Sold, compute the company's gross profit percentage for fiscal 2016 and the year immediately prior to...

  • Do part of the financial analysis project. Using the correct financial ratios evaluate the company with...

    Do part of the financial analysis project. Using the correct financial ratios evaluate the company with regard to its short-term liquidity, long-term solvency and profitability. See pages 604 and 605 for which financial ratios should be used to evaluate each category. Your evaluation declare whether Key Tronic is: strong, above average, average, below average, weak, for each short-term liquidity, long-term solvency and profitability. Be sure to mention the financial ratio you are looking at in making this determination and it...

  • Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for...

    Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $162,000 $146,000 $130,000 Notes payable (8% Interest) 50,000 50,000 50,000 Common stock 20,000 20,000 20,000 Preferred 4% stock, $100 par 10,000 10,000 10,000 (no change during year) Retained earnings 60,560 39,780 30,000 The 2017 net income was $21,180, and the 2016 net income was $10,180. No dividends on common stock were...

  • The Home Depot, Inc., financial statements appear in Appendix A at the end of this textbook. a. Identify where...

    The Home Depot, Inc., financial statements appear in Appendix A at the end of this textbook. a. Identify where you can tell that the company uses straight-line depreciation. b. Which of the following statement is false? c. Using information from the consolidated financial statements, calculate the following for the year ended February 1, 2015: a) Net Income, b) Gross profit as a % of sales, c) Current ratio at February 1. 2015, d) Current ratio at the end of the...

  • I need help with research and comparing two companies’ financial statements. I need to complete the...

    I need help with research and comparing two companies’ financial statements. I need to complete the following steps: Download Coca-Cola and PepsiCo financial statements for the year 2019. Based on the information in the financial statements and what you have found through doing research about the company, determine the following for both companies: Growth Profitability Financial health Price ratios Management effectiveness In a report, provide an evaluation of the following: Liquidity Solvency Profitability for each company, relative to each other...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT