Question

Company chosen Amazon. Short- and long-range financial problems. Examine the company and provide a report on the short- and long-range financial problems that are evident from the review. If you find no short- or long-range financial problems, provide the evidence to justify this conclusion.

Answer 1

Amazon is an American conglomerate which is highly focused into growth strategy and aggressive pricing strategy by overtaking its competitor and extending excessively into the global markets by adaptation of highly aggressive approach through capital infusion and acquisition approach.

I find no short or long term financial problem with this company because this company is having an adequate amount of liquidity as its cash reserve are on highs and it is also having ample solvency because the debt to equity ratio is also manageable and controllable and the aim of the company to become debt free is also getting incorporated into the value of company so it can be said that the risk of the company is completely mitigated by adaptation of proactive strategy in order to avoid any kind of further financial distress so it can be said that the company is actively managing all such financial problems which it can face in the long run so I do not find any problem in the short and long run.

it can be reflected through the share price of the company which is hitting continuously high even if there is so much concern regarding pandemic unfolding in the global economy.