Project One

Cody Snodgrass
Financial Management
FIN-515
Keller Graduate School of Management
July 24, 2015

Thanks to technology people can now shop from the comfort of their own homes and purchase virtually anything. This trend has become so profitable that many companies have started to shut down their big chain stores and move to online stores to increase profits and decrease expenses. Amazon is a company that has taken it to new heights in terms of how they perform business. Their prices are low due to the fact that they do not have very much inventory. They work with other companies to help provide them exposure for their business in exchange for lower prices for their products. However a fierce competitor in terms of size and resources not to mention media and other digital information is Google. It has been spending mass amounts of money in order to compete and possibly take down Amazon. Below is a comparison of both the giant corporation’s financial story. The facts and figures in this report are based on the 2014 fiscal year as per the references listed at the end of the report.
Profitability Ratios
Gross Margin
Google Amazon
($66,001,000,000-49,905,000,000) (88,908,000,000-63,880,000,000)/88,908,000,000=%28.15
/66,001,000,000=%24.39

Because it shows company retains after incurring the direct costs associated with producing the goods and services sold by a company. Amazon is more efficient than Google. The numbers are slightly higher on Amazons side due to more products and items are sold as compared to services or apps. Google has the App store but Amazon also has Amazon Prime as well as numerous other services. They both compare fairly equal in terms of services and goods.
Operating Margin
Google Amazon
$4.4B/66,001,000,000 =6.6% 178,000/88,908,000,000=.008%
After operating margin analysis we can say that neither