Amazon.com Inc (AMZN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		11.92	11.07	11.54	12.53	11.63	7.31	6.98	7.36	7.18	9.87	9.21	9.92	10.45	10.59	13.19	12.68	11.85	10.76	12.19	11.81
DOH	days	30.63	32.98	31.62	29.13	31.38	49.90	52.32	49.62	50.82	36.97	39.61	36.81	34.93	34.48	27.66	28.77	30.81	33.93	29.94	30.91

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.92
= 30.63

The days of inventory on hand (DOH) for Amazon.com Inc have shown fluctuations over the past several quarters. The trend indicates that the company has generally been able to manage its inventory efficiently, with some periods of higher DOH potentially indicating challenges in inventory turnover.

For instance, the DOH decreased from 30.91 days on March 31, 2020, to 27.66 days on June 30, 2021, suggesting a more efficient management of inventory during this period. However, there was a notable increase in DOH to 52.32 days on June 30, 2023, followed by a decrease to 29.13 days on March 31, 2024.

Although a higher DOH may indicate slower inventory turnover and tie up capital in excess inventory, it could also signal robust sales, especially during peak periods. On the other hand, a lower DOH may indicate a risk of stockouts or missed sales opportunities.

It is important for Amazon.com Inc to monitor its DOH closely to strike a balance between having sufficient inventory to meet customer demand and minimizing carrying costs. Additionally, the company should assess the reasons behind any significant fluctuations in DOH and take appropriate actions to optimize its inventory management processes.