Amazon.com Inc (AMZN)
Payables 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 |
| Payables | US$ in thousands | 84,981,000 | 72,004,000 | 69,481,000 | 66,907,000 | 79,600,000 | 67,760,000 | 71,219,000 | 68,547,000 | 78,664,000 | 71,474,000 | 66,090,000 | 63,926,000 | 72,539,000 | 58,334,000 | 51,036,000 | 40,056,000 | 47,183,000 | 35,794,000 | 36,063,000 | 31,809,000 |
| Payables turnover | 4.56 | 3.60 | 3.67 | 3.76 | 3.10 | 5.34 | 4.94 | 5.06 | 4.34 | 4.58 | 4.82 | 4.73 | 3.89 | 4.38 | 4.68 | 5.56 | 4.43 | 5.38 | 4.99 | 5.35 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $387,561,000K ÷ $84,981,000K
= 4.56
Amazon.com Inc.'s payables turnover ratio has shown fluctuations over the past eight quarters. The payables turnover ratio measures how efficiently a company is managing its payments to suppliers. A higher ratio indicates that the company is paying its suppliers more frequently, which may be a sign of strong cash flow management.
In Q4 2023, the payables turnover ratio was 3.59, which decreased from the previous quarter's ratio of 4.14. This decrease may suggest that Amazon.com Inc. took longer to pay its suppliers during this period compared to the previous quarter.
Overall, the payables turnover ratio for Amazon.com Inc. has varied between 3.59 and 4.34 over the past eight quarters, with an average ratio of approximately 4.00. This indicates that the company generally pays its suppliers every 3 to 4 months, which could be considered a reasonable level of efficiency in managing its payables.
Investors and analysts may want to monitor the trend of the payables turnover ratio over time to assess if there are any significant changes in the company's payment practices and cash flow management.
Peer comparison
Dec 31, 2023