Amazon.com Inc (AMZN)

Days of sales outstanding (DSO)

		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
Receivables turnover		11.49	11.98	12.01	12.30	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
DSO	days	31.78	30.47	30.38	29.67	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.49
= 31.78

The Days of Sales Outstanding (DSO) metric for Amazon.com Inc shows the number of days it takes for the company to collect revenue from its sales. Looking at the historical data, we observe a relatively stable trend in the DSO metric from March 31, 2020, to June 30, 2021, with figures ranging between 21 to 23 days. However, from December 31, 2021, onwards, there has been a noticeable increase in the DSO, reaching 33.36 days by December 31, 2023.

This upward trend may suggest potential challenges in collecting revenue efficiently or could be reflective of changes in Amazon's sales and credit policies. A higher DSO could indicate slower collections from customers, which may impact cash flow and working capital management. It is crucial for Amazon to closely monitor and manage this metric to ensure timely collection of receivables and maintain healthy liquidity levels.

The recent increase in DSO, especially in the last few quarters, warrants further investigation to identify the underlying factors driving this trend. Addressing any issues related to delays in receivables collection could help improve the company's financial health and operational efficiency in the long run.