Amazon.com Inc (AMZN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 571,668,000 | 511,276,000 | 467,958,000 | 384,452,000 | 278,902,000 |
| Property, plant and equipment | US$ in thousands | 204,177,000 | 186,715,000 | 160,281,000 | 45,014,000 | 72,705,000 |
| Fixed asset turnover | 2.80 | 2.74 | 2.92 | 8.54 | 3.84 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $571,668,000K ÷ $204,177,000K
= 2.80
The fixed asset turnover ratio for Amazon.com Inc. has exhibited a declining trend over the past five years, decreasing from 3.86 in 2019 to 2.82 in 2023. This indicates that the company generated $2.82 in revenue for every $1 invested in fixed assets in 2023. The decreasing trend suggests that Amazon.com Inc. may be becoming less efficient in utilizing its fixed assets to generate sales. This could be due to various factors such as increased investment in fixed assets without a proportional increase in revenue generation or inefficiencies in the utilization of existing fixed assets. It is important for the company to closely monitor and address this trend to ensure optimal utilization of its fixed assets and improve overall operational efficiency.
Peer comparison
Dec 31, 2023