Keller Graduate School of Management
Prepared for: Professor Cynthia Taylor
Prepared by: Abu N Rahman
In current online business marketing competition there are two companies competing each eBay and Amazon. That’s why I choose those companies for financial analysis. Considering availability of information analyzing year 2013
$3081, 000/$4530, 000 $6781, 000/$25587, 000
= 0.68 or 68% 0.2650 or 26.50%
Because it shows company retains after incurring the direct costs associated with producing the goods and ...view middle of the document...
That’s why invest in eBay is more profitable than Amazon.
Interest Coverage Ratios
$1028, 000/0 $491, 000/$39, 000
= - 12.59
Especially interest coverage ratio arises because how easily a company can pay interest on outstanding debt. In this case eBay makes their place safe because they don’t have to pay any interest. On the other hand Amazon has 12.59. In consideration of interest coverage ration it is also could be a good investment.
= - 643.487
*EBITDA= Sales-Expenses (Excluded tax, interest, depreciation & amortization)
$4530, 000-1028, 000 $25587, 000-$491, 000
Because of EBITDA consider a company’s profitability of its interest paying ability. In this case Amazon has good position on it and eBay is out of consideration because of zero interest.
=23.65 B/66.49B 9.746/ 112.56
=0.3557 or 35.57% 0.0867 or 8.67%
Market to book ratio is important for investors to know how much are they paying for each dollar in net assets. In her we are calculate the total book value of its assets and its current market value. That’s why we can say that they have enough assets for make them strong in future.
$4530, 000/ $27320, 000 $25587, 000/$25278, 000
= 0.1658 1.0122
In assets turnover ratio analysis Amazon are generate revenue more efficiently than the eBay. In here measures the number of dollars of revenue generated by 1.0122 dollar of the Amazon’s assets. That’s why we can say that amazon uses...