CPAs involved in financial analysis focus on the 10-K for major companies. Gross profit and inventory valuations play a key role in recognizing the company’s financial profile:

Choose two of the FAANG stocks:

Facebook.
Amazon.
Apple.
Netflix.
Google.

Based upon the most current 10-K report from each company, compare and contrast gross profit and ending inventory.
Explain the role gross profit and inventory turnover play in a company’s profitability.