A Comparative Financial Analysis Between World Top Two E-Commerce Companies: Amazon and Alibaba

Author:Mohd. Mohsin Qureshia*, S.K.S. Yadavb

Abstract:
Now in our daily life, the Internet plays an important role. Almost daily, we use the Internet for every single work. Nowadays, people are likely to buy and sell products and services over the electronic system, and they are reliable and comfortable using e-commerce. From pin to ship, everything is available on the web. Commercial markets are transforming into e-commerce centers now. People generally avoid visiting crowded markets rather than prefer online shopping, which is more convenient because of their busy schedules and provides them with a relaxed shopping environment. Now, various social e-commerce sites are available for customers world-wide. In the present study, we will do a comparative analysis of the financial statements of two international e-commerce companies, Amazon and Alibaba. Amazon is an American-based multinational e-commerce company, while Alibaba is a China-based global e-commerce company. Using ten years (from 2010 to 2020) secondary data, we will analyze the financial performance of companies by using the five-way DuPont Model. DuPont model is the most important model for measuring the R.O.E. of companies. This study will evaluate the best among the two selected companies, Amazon and Alibaba.

Keywords:Key Words: E-Commerce, R.O.E., DuPont Model.

DOI:10.46333/ijtc/10/2/3

International Journal of Trade & Commerce (Vol: 10 Issue:2)