Financial Statement Analysis; case study of Amazon.com, Inc.

Bc. Ma Nathalie Marucot, BA (Hons)

Master's thesis

Abstract:

This paper explores the financial performance of the world’s most known e-commerce company, Amazon. This paper examines Amazon’s history from its beginning to becoming the world’s most valuable company. This thesis focuses on Amazon’s business through its continued expansion and business acquisitions. This study provided theoretical background on e-commerce, Amazon’s first mover strategy and its diversification strategy. Amazon's financial performance within 2016 to 2020 was analyzed including how the pandemic has impacted its business. It involved financial data and models to assess Amazon's profitability, liquidity, growth trajectory as well as bankruptcy model such as Altman Z-score model in order to achieve the aim. The study shows Amazon has earned tremendous growth throughout the years 2016 to 2020, especially the year of 2020 which is its most favorable year despite the downturn in the global economy. The analysis results can contribute to studies that shows how companies can achieve greater profitability with diversification strategy.

Keywords

Amazon.com, financial analysis, financial ratios, horizontal analysis, vertical analysis

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2022

Thesis defence

• Supervisor: Ing. Karel Malec, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management