Amazon.com Inc (AMZN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		11.64	10.81	10.45	11.85	10.31
DOH	days	31.36	33.75	34.93	30.81	35.41

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.64
= 31.36

Days of Inventory on Hand (DOH) is a key efficiency ratio that helps in evaluating how effectively a company manages its inventory. Lower DOH values indicate that a company is selling its inventory quickly, while higher values may suggest potential issues with inventory management or sales.

Analyzing Amazon.com Inc.'s DOH over the past five years, we observe a fluctuating trend. The company's DOH decreased from 45.20 days in 2019 to 37.23 days in 2020, indicating an improvement in inventory turnover efficiency. However, in the following years, the DOH increased to 43.74 days in 2021 and 43.48 days in 2022 before dropping slightly to 39.91 days in 2023.

The upward trend in DOH from 2020 to 2022 may suggest potential challenges in inventory management or slower inventory turnover during those years. However, the slight decrease in DOH in 2023 indicates a potential improvement in the efficiency of inventory management.

It is essential for Amazon.com Inc. to monitor and manage its inventory effectively to ensure optimal levels that balance between meeting customer demand and minimizing carrying costs. Further analysis of the company's operations, supply chain management, and sales strategies would provide more insights into the factors influencing its DOH levels over the years.