Amazon.com Inc (AMZN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		10.94	12.07	14.23	15.67	13.40
DSO	days	33.36	30.24	25.65	23.30	27.24

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.94
= 33.36

Days of Sales Outstanding (DSO) measures the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates a faster collection of accounts receivable, which is positive for cash flow and liquidity.

Analyzing Amazon.com Inc.'s DSO over the past five years, we observe a general trend of decreasing DSO values from 2019 to 2021, indicating an improvement in their accounts receivable collection efficiency. However, in 2022 and 2023, there was a slight increase in DSO, suggesting a potential slowdown in collections.

The DSO of 33.18 days at the end of 2023 is higher compared to the previous year, indicating that Amazon may be taking longer to collect revenue from customers. This could be a red flag, as an increasing DSO may point to potential issues with customer creditworthiness, collection processes, or shifts in sales terms.

Further analysis of the underlying reasons for the increase in DSO in 2023 is warranted to assess whether this is a temporary fluctuation or a concerning trend that could impact Amazon's working capital management and overall financial health.