In 1994, Jeff Bezos started Amazon.com, one of the first online retail sites, and in 1995 he became active on the Internet. Jeff Bezos is still the CEO today and his company is growing every year with the addition of many subsidiaries. Amazon started selling only in America and today it is in over 11 countries and growing. We'll take a look at some financial information to come to a conclusion about whether Amazon is a good investment in the present and future. Next we will examine the three techniques used to evaluate financial statement data: horizontal analysis, vertical analysis and ratio analysis. We will focus on three financial factors: liquidity ratios, profitability ratios and solvency ratios of Amazon.com during the years 2007 and 2008. All dollar amounts are expressed in millions in the document and assets are profits and current liabilities are expenses. Amazon .com follows generally accepted accounting principles with the following examples. Amazon.com has used an independent accounting firm called Ernst Y Young Independent Registered Public Accounting Firm to audit the financial side of its business for the past 3 years. Ernst found that Amazon uses the straight-line method of fixed depreciation. This method considers the purchase of equipment minus the salvage value divided by the total productive years. As of 2008 Amazon.com is in legal proceedings with eight different companies and no court decision exists at this time. The indirect method is used because it focuses on the differences between net income and net cash flow from the company's operating activities. When looking at Amazons.com inventory it is assumed that the first purchases are the first to be recognized as cost of goods sold (FIFO). When you recognize revenue…half of the sheet…annually. Jeff Bezos is quoted as saying, “One strategy: “At Amazon we have three big ideas that we have stuck with for 18 years, and they are the reason for our success: putting the customer first. Invent. patient." This approach appears to be working for Amazon.com. We took a look at Amazon's past to gather our findings, and they reveal that Amazon.com is a very strong financial company with the ability to transform into an even stronger company. big in the future. I would recommend investing in Amazon.com stock options References http://www.businessinsider.com/jeff-bezos-inspiring-business-quotes-2013-10#one-strategy-weve-had-tre-. big-ideas- on Amazon that we were stuck with for 18 years and are the reason they were successful, put the customer first: invent and be patient 10 http:/ /www.stock-analysis-on. net/NYSE/Company/Target-Corp/Ratios/Short-term-Operating-Activity