Shopify Case

1080 Words5 Pages

Significant Asset Items
On the balance sheet the three components that gives the results are assets, liabilities, and owner’s equity.
Shopify: The 2016 balance sheet period for Shopify show the asset that have significant value. The one assets that Shopify has with the most value is short-term investment and that is value at $308,401 (in thousands). The other assets that show value in the current assets section is cash and cash equivalent: $84,013 (in thousands), net receivables: $21,495 (in thousands) and other current assets $8,989 (in thousands). There are other assets that are held for longer periods that is valuable to the company and those are property plant and equipment ($45,719 (in thousands)), goodwill ($15,504 (in thousands)), and intangible assets ($6,437 (in thousands)). Since 2014 ($68,394 (in thousands)) to 2016 ($422,898 (in thousands)) Shopify’s total assets have increased $354,514 (in …show more content…

“Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services” (Investopedia, 2014, par 2). The total revenue can be consider the total sales. For the 3 years of 2014 to 2016 the total revenue and gross profit have increased, which means that Shopify is able to show growth in the amount of sales it has had and will continue to have. This growth is due an increase in the amount of sellers opening stores on Shopify. “Shopify has been growing like gangbusters and there has acquisition interest from a big suitor. The number of merchants reached 400,000 for the quarter, up 45% year-over-year” (Vena, 2017, par 4). The drastic increase in the amount of people becoming seller on Shopify has led to an increase in revenue and overall Shopify’s

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