Which company is more efficient in generating sales

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Problem

Analyze and compare Amazon.com and Netflix Amazon.com, Inc. (AMZN) is the world's leading Internet retailer of merchandise and media. Amazon also designs and sells electronic products, such as e-readers. Netflix, Inc. (NFLX) is one of the world's leading Internet television networks. Both companies compete in the digital media and streaming space. However, Netflix is more narrowly focused in the digital streaming business than is Amazon. Sales and average book value of fixed assets information (in millions) are provided for Amazon and Netflix for a recent year as follows: Line Item Description Amazon.com Netflix Sales $469,822 $29,697 Average book value of fixed assets 136,698 1,142 (I) Compute the fixed asset turnover ratio for each company. Amazon fill in the blank 1 of 2 3.4 Netflix fill in the blank 2 of 2 26.0. Get the instant assignment help. (II) Which company is more efficient in generating sales from fixed assets? Netflix (III) How would you explain the difference in the fixed assets turnover of both the companies?

Reference no: EM133931824

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