Reviewing the horizontal analyses of Amazon’s and Target’s Balance Sheets, what comparison and conclusions can you draw from this data? Your answer must be a minimum of one paragraph.
Reference for balance sheet: nasdaq.com
Two or more balance sheets are compared to assess performance. High balance sheet figures, do not always mean that the company is performaning better in comparison to the other.
Comparison can be done by ratio analysis.
In the given case, we are comparing Amazon and Target.
- Amazon company shows more cash inflow in comparison to Target.
- Total % increase in assets of Target is more than Amazon.
- Shareholders wealth in Amazon has increased by 13%, on the other hand in Target it has increased just by 4%.
In conclusion we can say that out of the three parameters assessed, Amazon has performed better in two. So, we can say that Amazon is a better performer when compared with Target.
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