Verified Document

Amazon's Cash Cycle So Much Shorter Than Research Paper

Related Topics:

¶ … Amazon's cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers? There are several reasons which explain why the Amazon Company has a shorter cash cycle than its competitor Barnes & Noble. First and foremost, Amazon is a much bigger company than Barnes & Noble both in terms of income and in the number of products that it sells. While Barnes & Noble sells some things besides book and ebooks, this is their primary product. Amazon sells everything including books, although this is a very small portion of their income. Another reason for this is that Amazon is doing better financially than Barnes & Noble. The ebook trend has bitten into Barnes & Noble's income, which they tried to combat by creating their own ereader, the Nook but this was far less successful than the Amazon ereader, Kindle and then Kindle Fire. Unlike Amazon which is highly diversified, Barnes & Noble is dependent on book sales which have continued to decline. Other retailers might look at this scenario and decide to lessen their interests in the sale of print books and to diversify their product so as not to be dependent on any one department.

2. How does Boeing achieve a cash cycle of 100 days?

Given that Boeing,...

It had a payables period of 183 days and a cash cycle of negative 77 days. Analyzing these numbers, it is clear that the cash cycle is determined by comparing the days in the operating cycle with the days in the payables period. So, if there were a difference of 100, this would give Boeing a cash cycle of 100 days.
3. Define the following terms as they apply to our work in FIN 201 in ten words or less:

Capital structure: the way a corporation finances its assets

Working capital: capital of a business used in day-to-day operations

Assets: thing that derives value because of contractual claim

Liabilities: financial obligation to pay money, goods, or services

Retained earnings: portion of income retained by the corporation instead of distributed

Liquidity: liquid assets; cash

Leverage: use of financial devices to increase return on investment

Sarbanes-Oxley: Public Company Accounting Reform and Investor Protection Act

GAAP: generally accepted accounting principles

Market value vs. book value: book value is price paid, market value is current price it…

Sources used in this document:
Works Cited

Ross, S., Westerfield, R. & Jordan, B. (2012). Fundamentals of Corporate Finance. 10th ed.

McGraw-Hill.
Cite this Document:
Copy Bibliography Citation

Related Documents

Exchange of Goods and Services Between Two
Words: 5883 Length: 20 Document Type: Essay

exchange of goods and services between two or more people, otherwise known as commerce, is as old a practice as mankind. In recent times commerce has added a twist, pairing it with electronic resources. With the invention of the computer and the creation of the Internet business done online became known as Electronic Commerce (e-commerce). E-commerce combines technology, information systems, and the long reaching arm of the Internet to

Corporate Finance Project Wal-Mart Is
Words: 3222 Length: 10 Document Type: Term Paper

This is a particularly useful metric for retailers, because the fixed assets are typically the stores and land. The greater the degree to which the retailer can convert the stores and land to sales, the implication is that the retailer is a superior merchandiser. For Wal-Mart, the sales/net fixed assets ratio is 3.25. The RMA for this metric holds that 7.3 is "worst." This indicates that Wal-Mart is doing

Walk Down Wall Street Stock Valuation From
Words: 5821 Length: 20 Document Type: Book Report

Walk Down Wall Street Stock Valuation from the Sixties through the Nineties Malkiel notes that there were a number of speculative trends from the 1960s to 1990s, and that they all mended up in the same way. Every few years, the stock market has another bubble or speculative mania which soon crashes and levels off, such as overvalued food stocks in the 1980s or the Nifty Fifty blue chips in the 1970s,

Samsung Electronics Examination and Evaluation of Business
Words: 5202 Length: 13 Document Type: Essay

Samsung Electronics Examination and Evaluation of Business Strategies and Frontier Markets: Brazil The South Korean company Samsung began operations in Brazil in December 1986 when it opened a representation office. Since them Samsung has invested a total of U.S.$300 million, employs almost 1,000 staff members and has a revenue of above U.S.$500 million. Since May 1994, Samsung has started offering services to Brazilian consumers, and from November 1995 it has produced TV

How to Perform Valuations for Municipalities in South Africa
Words: 64599 Length: 254 Document Type: Dissertation

……South African Municipalities Municipal Revenue Loss Reduction through Improved Municipal Valuation Methodologies:Balance Sheet Enhancement of South African Municipalities to Improve Rates and Taxes Revenue GenerationAbstractThis study examines the property valuation process of Municipalities in South Africa and develops a strategy for strengthening that process in order to more efficiently value properties and ultimately to enhance municipal balance sheets and increase revenue streams. This study proposes an innovative valuation method based

Promising Phenomenon That Lends Itself
Words: 26560 Length: 96 Document Type: Dissertation

66). Furthermore, social software will only increase in importance in helping organizations maintain and manage their domains of knowledge and information. When networks are enabled and flourish, their value to all users and to the organization increases as well. That increase in value is typically nonlinear, where some additions yield more than proportionate values to the organization (McCluskey and Korobow, 2009). Some of the key characteristics of social software applications

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now