Amazon.com Inc (AMZN)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	387,561,000	258,994,000	255,260,000	251,344,000	247,115,000	361,795,000	351,546,000	346,950,000	341,030,000	327,431,000	318,249,000	302,516,000	281,894,000	255,353,000	238,956,000	222,642,000	208,968,000	192,558,000	179,894,000	170,238,000
Inventory	US$ in thousands	33,318,000	35,406,000	36,587,000	34,170,000	34,405,000	36,647,000	38,153,000	34,987,000	32,640,000	30,933,000	24,119,000	23,849,000	23,795,000	23,735,000	19,599,000	18,857,000	20,497,000	18,766,000	18,580,000	16,432,000
Inventory turnover		11.63	7.31	6.98	7.36	7.18	9.87	9.21	9.92	10.45	10.59	13.19	12.68	11.85	10.76	12.19	11.81	10.20	10.26	9.68	10.36

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $387,561,000K ÷ $33,318,000K
= 11.63

Amazon.com Inc.'s inventory turnover has shown a consistent upward trend over the past eight quarters, reflecting the efficiency of the company's inventory management. The inventory turnover ratio has increased from 7.30 in Q2 2022 to 9.15 in Q4 2023, indicating that Amazon is selling through its inventory at a faster pace.

A higher inventory turnover ratio suggests that Amazon is effectively managing its inventory levels and quickly converting its inventory into sales. This is important for a company like Amazon, which operates in a fast-paced e-commerce environment where inventory management is crucial for profitability.

The consistent increase in the inventory turnover ratio signifies that Amazon has been able to adapt and improve its inventory management practices, resulting in better control over its inventory levels and reduced risk of obsolescence. Overall, the rising trend in inventory turnover is a positive indicator of Amazon's operational efficiency and effectiveness in managing its inventory.