Financial Analysis Of Amazon

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Amazon

Ashley S. Stamper
Pfeiffer University
Amazon

Amazon has been a strong name in the world we inhabit today. From starting as an online bookstore to becoming one of the largest online shopping stores in the world, Amazon has made a name for itself in the world. In the 20 years Amazon has been known, a steady increase in users of the company has occurred as well as record breaking growth with research and development being the main focus at Amazon’s core,
Amazon’s Growth
Amazon has been around for approximately 20 years. Since the year 1997, originally known as an “online bookstore”, Amazon has grown exponentially into a $438 billion company (B., 2017). Amazon will become and remain a top competitor in its industry over a short period
Amazon’s approach includes incorporating technology into “all of our teams, all of our processes, our decision-making, and our approach to innovation in each of our businesses. It is deeply integrated into everything we do”. (Bezos, J., 2011). Amazon “began as an online bookstore” then flourished into the largest bookstore ever in existence and much more (B., 2017).
Differences between Gross Profit & Net Income.
“The concepts of gross and net income have different meanings for businesses and nonbusiness. For a company, gross income equals sales minus the cost of goods sold. Thus, gross income is the amount that a business earns from the sale of goods or services, before expenses have been deducted. For a company, net income is the amount of earnings after all expenses have been deducted. Basically, gross income is an estimated amount before all expenses are included, and net income is the final amount of profit or loss after all expenses are included” (https://www.accountingtools.com/articles/what-is-the-difference-between-gross-and-net-income.html). Amazon’s founder Jeff Bezos recognizes the benefit of investing operating cash flows to stay ahead of the competition. This tactic gives Amazon the competitive edge and the available resources to stay up to date with technology (Bezos, J.,

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