Amazon.com Inc (AMZN)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	407,692,000	399,530,000	393,764,000	390,337,000	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
Inventory	US$ in thousands	34,214,000	36,103,000	34,109,000	31,147,000	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
Inventory turnover		11.92	11.07	11.54	12.53	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

December 31, 2024 calculation

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

The inventory turnover of Amazon.com Inc has shown fluctuations over the given time period. The ratio indicates how many times a company's inventory is sold and replaced over a specific period.

Amazon's inventory turnover ranged from a high of 13.19 in June 2021 to a low of 6.98 in June 2023. Generally, a higher inventory turnover ratio suggests that the company's inventory is efficiently managed and quickly converted into sales. Conversely, a lower ratio may imply either slow-moving inventory or overstocking.

The trend of Amazon's inventory turnover ratio shows some volatility, with peaks and troughs, but there seems to be a decreasing trend overall from 2021 to 2024, with the ratio declining from 13.19 in June 2021 to 11.92 in December 2024.

It would be advisable for Amazon to closely monitor its inventory levels and management practices to ensure optimal efficiency and cost-effectiveness in its operations. Further analysis of the reasons behind the fluctuations in the inventory turnover ratio would be beneficial for the company to make informed decisions regarding inventory management strategies.