Amazon.com Inc (AMZN)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		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	10.20	10.26	9.68	10.36
DOH	days	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	35.80	35.57	37.70	35.23

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.63
= 31.38

To analyze Amazon.com Inc.'s days of inventory on hand (DOH) over the past eight quarters, the trend indicates a fluctuating pattern. The DOH decreased from 46.77 days in Q2 2022 to 39.91 days in Q4 2023, showing an improvement in managing inventory. However, the DOH increased to 45.57 days in Q2 2023 before decreasing again in Q3 2023 to 43.39 days.

Overall, the average DOH over the past eight quarters is around 44 days, suggesting that Amazon has been able to efficiently manage its inventory levels relative to its sales volume. It is crucial for companies like Amazon, operating in the e-commerce sector, to strike a balance between having enough inventory to meet customer demand promptly while minimizing excess inventory that could tie up capital.

Further analysis of the drivers behind changes in DOH, such as sales growth, supply chain disruptions, or changes in customer preferences, would provide more insights into Amazon's inventory management effectiveness. Monitoring DOH over time and benchmarking it against industry peers can help assess Amazon's inventory efficiency and operational performance.