Amazon.com Inc (AMZN)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	407,692,000	387,831,000	372,084,000	341,030,000	281,892,000
Inventory	US$ in thousands	34,214,000	33,318,000	34,405,000	32,640,000	23,795,000
Inventory turnover		11.92	11.64	10.81	10.45	11.85

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $407,692,000K ÷ $34,214,000K
= 11.92

To analyze Amazon.com Inc's inventory turnover, we consider the data provided for the years 2020 to 2024. Inventory turnover is a key efficiency ratio that measures how many times a company's inventory is sold and replaced over a certain period.

Based on the data provided, we observe the following trends in Amazon's inventory turnover:
- In 2020, the inventory turnover was 11.85, indicating that Amazon's inventory was turning over approximately 11.85 times during that year.
- The inventory turnover decreased to 10.45 in 2021, suggesting a slight decrease in the efficiency of inventory management.
- However, there was a slight improvement in 2022, with the inventory turnover increasing to 10.81.
- In 2023, the inventory turnover further improved to 11.64, showcasing an enhanced efficiency in managing inventory turnover.
- By the end of 2024, the inventory turnover reached 11.92, indicating that Amazon was turning its inventory over nearly 12 times during the year.

Overall, the trend in Amazon's inventory turnover shows fluctuations over the years, with some variations in efficiency levels. A higher inventory turnover ratio signifies that the company is selling its inventory quickly, which can be positive in terms of liquidity and potentially reducing holding costs. However, significant changes in inventory turnover should be further investigated to understand the underlying factors impacting the company's inventory management practices.