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ACCT90002 Financial Statement Analysis

Question

Answered

Question:

Financial analysis on Amazon

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

Please follow the following steps:

1.

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

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

2.

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

Operating management: Gross profit margin, NOPAT margin

Investment management: Asset turnover, Accounts receivable turnover

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

Solvency: Sustainable growth rate

Please show all calculations in an excel file.

3. Assess the accrual quality

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

ACCT90002 Financial Statement Analysis

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Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

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