Amazon.com Inc (AMZN)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	636,907,000	618,656,000	601,945,000	587,658,000	571,668,000	550,716,000	534,914,000	521,895,000	511,276,000	499,803,000	483,634,000	475,856,000	467,958,000	456,610,000	442,115,000	417,869,000	384,831,000	346,713,000	320,581,000	295,093,000
Property, plant and equipment	US$ in thousands	252,665,000	237,917,000	220,717,000	209,950,000	204,177,000	196,468,000	193,784,000	190,754,000	186,715,000	177,195,000	173,706,000	168,468,000	160,281,000	147,152,000	133,502,000	52,161,000	45,014,000	99,981,000	86,517,000	77,779,000
Fixed asset turnover		2.52	2.60	2.73	2.80	2.80	2.80	2.76	2.74	2.74	2.82	2.78	2.82	2.92	3.10	3.31	8.01	8.55	3.47	3.71	3.79

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $636,907,000K ÷ $252,665,000K
= 2.52

The fixed asset turnover ratio of Amazon.com Inc has exhibited a declining trend over the last few years, indicating a diminishing efficiency in generating sales revenue from its fixed assets. The ratio decreased from 3.79 in March 2020 to 2.52 in December 2024. This decline suggests that Amazon has been less effective in utilizing its long-term assets, such as property, plant, and equipment, to generate sales. A lower fixed asset turnover may imply that Amazon is not efficiently leveraging its investments in fixed assets to drive revenue growth. This trend is worth further investigation to understand the underlying reasons and potential implications for the company's financial performance and operational efficiency.