Financial Measures: (Amazon, 2021)

FINANCIAL MEASURES
Financial performance is the company's financial condition over a certain period and it measures
the company's ability to manage and control its resources (Fatihudin, et al., 2018).
LIQUIDITY RATIO
Current Ratio:
It is a liquidity ratio. It is the broadest measure of short-term liquidity. The current ratio indicates

the extent to which current liabilities can be “covered” by current assets (Rist & Pizzica, 2014).
Particulars 2020 ($m) 2021 ($m)

Current Assets 132,733 161,580
Current Liabilities 126,385 142,266
(Amazon, 2021)
Current Asset Ratio 2020 ($m) 2021 ($m)

Current Assets/Current 132,733 /126,385 161,580 /142,266
Liabilities
1.14 1.05
The current ratio has increased by 8.6%. This is because the increase in current assets is greater
than the increase in current liabilities. The current assets are sufficient enough to meet the short
term financial obligations.
EARNING PER SHARE
The term earnings per share (EPS) represents the portion of a company's earnings, net of taxes
and preferred stock dividends, that is allocated to each share of common stock (Islam, et al.,
2014).
Particulars 2020 ($) 2021 ($)

EPS 42.64 65.96
(Amazon, 2021)
The EPS has increased significantly by 55%. This is because the net profit has improved
drastically in the FY 2021. This is a positive sign for the investors.
GEARING RATIO
Debt-equity ratio
It measures how much of the company is financed by its debt holders compared with its owners.
Companies with lower debt to equity ratios are generally less risky than those with higher debt to
equity ratios (Rist & Pizzica, 2014).
Particulars 2020 ($m) 2021 ($m)

Debt 227,791 282,304
Equity 93,404 138,245
(Amazon, 2021)
Net profit Ratio 2020 ($m) 2021 ($m)

Debt/Equity 227,791/93,404 282,304/138,245
2.44 2.04
The gearing ratio has decreased by 16.4%. The decrease in gearing ratio reduces the risk
associated with Amazon. The debt component has increased due to the increase in operating
lease. The equity component has increased due to the current year profit and employee benefit
plan.
NON-FINANCIAL PERFORMANCE MEASURE
Non-ﬁnancial performance measures are based on measures that complement ﬁnancial

statements such as measures on customer satisfaction, internal business processes, and
innovation (Kaplan & Norton, 1992). It helps to overcome the limitations of financial
performance measures as a single indicator (O'Connell & O'Sullivan, 2014).
HEALTH AND SAFETY
Global lost time incidents
The Lost Time Incident rate (LTIR) is calculated using the total number of accidents resulting in
at least one day taken off work, multiplied by 1,000 divided by the average number of employees
in that year. Reduction in LTIR is an important measure of the effectiveness of safety culture.
Lost Time Incident Rate
2020
YEARS
2019
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Lost Time Incident Rate
The LTIR has been reduced by 43% indicating that work related injuries have declined
significantly. Amazon invested $300m to safety improvements such as capital improvements,
new safety technology, vehicle safety controls, and engineering ergonomic solutions. It has
updated the global Environmental, Health and Safety (EHS) strategy and is committed to achieve
continuous improvement. The average rate for Couriers and Express Delivery Services for large
employers was 3.9 for LTIR (Amazon, 2021).
Consumer satisfaction
Best Part of Amazon service

2%
19%
33%
12%
14%
21%
Rapid response to complaints Streamlined checkout process

Refund processed before the item is returned Flexible return policy
Multiple delivery option Other
According to a feedvisor survey, 90 % of consumers are happy with Amazon's customer service,
with 33 percent selecting the company's quick response to complaints and order concerns as the
greatest element of the Amazon customer service experience.
Over 92 % of customers say they are more likely to buy things from Amazon than from other e-
commerce sites in 2021, and 56 % say they visit Amazon every day or at least a few times a
week. Amazon remains the top destination for product information, with 75% of customers
saying they check pricing and product reviews on Amazon before making a purchase (Feedvisor,
2021).
Consumers visiting amazon daily
2019
2020
0% 10% 20% 30% 40% 50% 60%

Carbon Emission
Carbon emmission and intensity

70 140
60 120
50 100
40 80
30 60
20 40
10 20
0 0
2019 2020
carbon emmission carbon intensity
While Amazon's company grew rapidly in2020, absolute carbon emissions rose by 19% and the
total carbon intensity reduced by 16 %. This carbon intensity rating is consistent with the
objectives developed by Amazon through the Science Based Targets Initiative (SBTi), the
industry leader in assisting firms in setting science-based emissions reduction targets. In
collaboration with The Nature Conservancy, Amazon contributed $10 million in 2020 to fund
two initiatives (Family Forest Carbon Program and Forest Carbon Co-Op Project) (Amazon,
2020).
References
Amazon, 2020. Amazon Sustainability Report | 2020, s.l.: s.n.
Amazon, 2021. Amazon Safety Report: Delivered with care, s.l.: Amazon.
Amazon, 2021. Amazon: Annual Report, Washington: s.n.
Fatihudin, D., Jusni & Mochklas, M., 2018. How Measuring the Financial Performance. International
Journal of Civil Engineering and Technology, June, 9(6), pp. 553-557.
Feedvisor, 2021. Everything You Need to Know About Amazon Consumer Behavior, s.l.: s.n.
Islam, M. R., Khan, T. R., Choudhury, T. T. & Adnan, A. M., 2014. How Earning Per Share (EPS) Affects on
Share Price and Firm. European Journal of Business and Management, 6(17), pp. 97-108.
Kaplan, R. S. & Norton, D. P., 1992. The balanced scorecard –measures that drive performance. s.l.:s.n.
O'Connell, V. & O'Sullivan, D., 2014. The influence of lead indicator strength on the use of nonfinancial
measures in performance management: Evidence from CEO compensation schemes. Strategic
Management Journal.. s.l.:Wiley.
QinetiQ Group, 2021. Annual Report & Accounts 2020, s.l.: s.n.
Rist, M. & Pizzica, A. J., 2014. Financial Ratios for Executives: How to Assess Company Strength, Fix
Problems, and Make Better Decisions. 1st ed. s.l.:Apress.

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FINANCIAL MEASURES

It is a liquidity ratio. It is the broadest measure of short-term liquidity. The current ratio indicates

Particulars 2020 ($m) 2021 ($m)

Current Asset Ratio 2020 ($m) 2021 ($m)

EARNING PER SHARE

Particulars 2020 ($) 2021 ($)

Particulars 2020 ($m) 2021 ($m)

Net profit Ratio 2020 ($m) 2021 ($m)

Non-ﬁnancial performance measures are based on measures that complement ﬁnancial

HEALTH AND SAFETY

Global lost time incidents

Lost Time Incident Rate

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Lost Time Incident Rate

Best Part of Amazon service

Rapid response to complaints Streamlined checkout process

Consumers visiting amazon daily

0% 10% 20% 30% 40% 50% 60%

Carbon emmission and intensity

carbon emmission carbon intensity

Amazon, 2021. Amazon: Annual Report, Washington: s.n.

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