Current Ratios: 1.05 2. Acid Test Ratio:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2020 ratios for AMAZON 10K (Current year)

1. Current Ratios: 1.05

2. Acid Test Ratio: 0.86

3. Account Recievable Turnover: 17.02 times

4. Inventory Turnover: 10.53 times

5. Day's sales uncollected: 23.20 days

6. Day's sales in Inventory: 37.23 days

7. Total asset turnover: 1.41 times

8. Debt ratio: 0.71

9. Equity ratio: 0.29

10. Debt to equity ratio: 2.44

11. Times earned interest: 13.90

12. Profit Margin Ratio: 5.5%

13. Gross profit margin: 39.6%

14. Return on total assets: 7.8%

15. Return on equity: 27.4%

16. Basic earnings per share: $42.66

17. Price earning ratio: $79.46

18. Dividend yield: Not determinable because there's no cash dividends

19. Working capital: $6.348

2019 ratio for AMAZON 10K (Prior year)

1. Current ratio 1.1

2. Acid Test ratio 0.86

3. Acc. Receivable turnover 14.96 times

4. Inventory turnover 10.53 times

5. Days' sales uncollected = 27.08 days

6. Days' sales in inventory = 45.20 days

7. Total asset turnover= 1.45 times

8. Debt ratio= 0.72 times

9. Equity ratio= 0.28

10. Debt to equity ratio= 2.63

11. Times interest earned= 9.09 times

12. Gross margin ratio= 40.99%

13. Profit Margin= 4.13%

14. Return on total assets= 5.97%

15. Return on equity= 21.95%

16. Basic earnings per share= $23.46

17. Working Capital= $8,522

18. Price earnings ratio= $78.77

 

What is the implication of profitability of management for the current year ratios?

What is the change between current and prior year?

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