Amazon.com Inc (AMZN)

Days of sales outstanding (DSO)

		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
Receivables turnover		10.94	12.68	13.40	13.86	12.07	13.82	13.90	14.64	14.23	15.96	16.48	17.20	15.68	16.64	16.10	16.54	13.42	15.65	14.99	15.05
DSO	days	33.36	28.78	27.24	26.33	30.24	26.40	26.27	24.93	25.65	22.87	22.15	21.22	23.28	21.93	22.68	22.06	27.20	23.32	24.36	24.25

December 31, 2023 calculation

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

The Days Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect payment from its customers after making a sale. A lower DSO is typically preferable as it indicates that the company is collecting revenue more quickly.

Analyzing Amazon.com Inc.'s DSO from Q1 2022 to Q4 2023 reveals a fluctuating trend. In Q1 2022, the DSO was 24.83 days, suggesting efficient collection of revenue. Subsequently, the DSO increased to 26.14 days in Q2 2022 before declining to 26.28 days in Q3 2022.

However, there was a significant jump in DSO to 30.08 days in Q4 2022, indicating a potential lag in revenue collection. This trend reversed in Q1 2023 with a decrease in DSO to 26.18 days, which continued to improve in Q2 2023 to 27.08 days and in Q3 2023 to 28.61 days, though still higher than previous quarters.

In Q4 2023, the DSO decreased to 33.18 days, marking a substantial increase from the previous quarter. This suggests that Amazon.com Inc. took longer to collect payments from customers during this period, which could potentially impact cash flow and liquidity.

Overall, while Amazon.com Inc. has shown variability in its DSO over the analyzed period, it is essential for the company to monitor and manage its collection processes effectively to ensure timely receipt of payments and maintain healthy cash flows.