Research Paper: Amazon VS. Microsoft
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RESEARCH PAPER:
AMAZON VS. MICROSOFT
Lainey Randolph
Florida State College at
Jacksonville
FIN4501
Professor Mathew Keyes
December 15, 2020
Research Paper: Amazon VS. Microsoft
1
Financial Statistics
Microsoft
2019
2017
Current Ratio
2.5158
2.1986
Debt to Equity
0.7053
0.9827
Inventory
Turnover
20.7998
15.7089
Profit Margin
31.1817
26.3941
Price to Earnings
29.374
25.308
Return on Assets
13.6937
10.1829
Return on Equity
38.3465
29.0602
Amazon
2019
2018
2017
Current Ratio
1.097
1.0981
1.04
Debt to Equity
0.3773
0.5395
0.893
Inventory
Turnover
8.0761
8.1027
6.9754
Profit Margin
4.1309
4.3253
1.7052
Price to Earnings
82.808
90.955
269.55
Return on Assets
5.1446
6.1931
2.3098
Return on Equity
18.6723
23.1303
10.9459
Research Paper: Amazon VS. Microsoft
2
Introduction to Amazon
What once started as an online bookstore, developed and founded by Jeff Bezos in 1995, in the
garage of his parents rented home, is now the world’s second most valuable company, with a net
worth of more than $1.7 trillion. According to Amazon’s “Who We Are” section their “mission
is to be Earth’s most customer-centric company. Amazon is guided by four principles: customer
obsession rather than competitor focus, passion for invention, commitment to operational
excellence, and long-term thinking. (AboutAmazon.com, n.a.) Amazon is used worldwide and
continues to become more and more popular each year. Most people know Amazon for their
quick shipping, reasonably priced products, and convenient e-commerce site and mobile app. But
Amazon has so much more to offer that some people either don’t even realize or just have never