Amazon.com Inc (AMZN)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	387,831,000	372,084,000	341,030,000	281,892,000	211,276,000
Payables	US$ in thousands	84,981,000	79,600,000	78,664,000	72,539,000	47,183,000
Payables turnover		4.56	4.67	4.34	3.89	4.48

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $387,831,000K ÷ $84,981,000K
= 4.56

The payables turnover ratio for Amazon.com Inc. has shown fluctuations over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its suppliers in a given period.

In 2023, the payables turnover ratio decreased slightly to 3.59 from 3.63 in 2022, suggesting a marginal decrease in the company's ability to efficiently manage its accounts payable obligations. However, it remains relatively stable compared to prior years.

In 2021 and 2020, the payables turnover ratio was 3.46 and 3.22 respectively, showing some variability in the company's payables management efficiency during those years. It appears that Amazon.com Inc. struggled slightly with managing its supplier payments in 2020, as indicated by the lower ratio.

In contrast, in 2019, the payables turnover ratio was higher at 3.51, indicating that the company was more efficient in managing its accounts payable that year compared to 2020.

Overall, the payables turnover ratio for Amazon.com Inc. exhibits some variability but has generally remained within a relatively stable range over the past five years. It is essential for the company to monitor this ratio to ensure effective management of its accounts payable and maintain healthy supplier relationships.