Amazon.com Inc (AMZN)
Payables 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 |
| Payables | US$ in thousands | 94,363,000 | 84,981,000 | 79,600,000 | 78,664,000 | 72,539,000 |
| Payables turnover | 4.32 | 4.56 | 4.67 | 4.34 | 3.89 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $407,692,000K ÷ $94,363,000K
= 4.32
The payables turnover ratio for Amazon.com Inc has shown a consistent upward trend over the years from 2020 to 2024. This indicates that the company is managing its accounts payable effectively, as it is taking fewer days to pay its suppliers. The increase in the payables turnover ratio signifies a more efficient use of working capital and better management of short-term liabilities. Amazon's ability to negotiate favorable credit terms with its suppliers and promptly settle its payables is reflected in the improving trend of this ratio. Overall, the increasing trend in the payables turnover ratio suggests strong financial health and effective working capital management for Amazon.com Inc.
Peer comparison
Dec 31, 2024