Amazon.com Inc (AMZN)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	10.94	12.68	13.40	13.86	12.07	13.82	13.90	14.64	14.23	15.96	16.48	17.20	15.68	16.64	16.10	16.54	13.42	15.65	14.99	15.05
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
Working capital turnover	76.90	—	—	—	—	—	—	—	24.23	31.41	19.18	69.60	60.62	31.36	18.84	47.03	32.78	38.21	35.29	41.93

Amazon.com Inc.'s activity ratios reflect its efficiency in managing various aspects of its operations.

- Inventory turnover has shown a stable trend over the quarters, ranging from 7.30 to 9.15. This indicates that Amazon is effectively managing its inventory and rapidly converting it into sales within a short period, which is crucial in the retail industry.

- Receivables turnover has generally been high, ranging from 11.00 to 14.70. This suggests that Amazon is efficiently collecting payments from its customers, reducing the risk of bad debts and improving cash flow.

- Payables turnover has also been consistent, ranging from 3.59 to 4.34. A higher payables turnover indicates that Amazon is taking longer to pay its suppliers, potentially benefiting from extended payment terms and improving its cash conversion cycle.

- The working capital turnover ratio for Q4 2023 is notably high at 77.32, indicating that Amazon is generating substantial revenue relative to its working capital. However, the absence of data for previous quarters limits a full comparison of the trend.

Overall, Amazon.com Inc.'s activity ratios suggest effective management of inventory, receivables, and payables, contributing to its operational efficiency and financial health.

Average number of days

		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
Days of inventory on hand (DOH)	days	31.38	49.90	52.32	49.62	50.82	36.97	39.61	36.81	34.93	34.48	27.66	28.77	30.81	33.93	29.94	30.91	35.80	35.57	37.70	35.23
Days of sales outstanding (DSO)	days	33.36	28.78	27.24	26.33	30.24	26.40	26.27	24.93	25.65	22.87	22.15	21.22	23.28	21.93	22.68	22.06	27.20	23.32	24.36	24.25
Number of days of payables	days	80.03	101.48	99.35	97.16	117.57	68.36	73.94	72.11	84.19	79.67	75.80	77.13	93.92	83.38	77.96	65.67	82.41	67.85	73.17	68.20

Activity ratios such as Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables provide insights into Amazon.com Inc.'s efficiency in managing its inventories, collecting receivables, and paying off its payables.

1. Days of Inventory on Hand (DOH):
- Amazon's DOH has generally decreased from Q2 2022 to Q4 2023, indicating an improvement in inventory management efficiency.
- The company has been able to turn over its inventory faster in recent quarters, which could result in lower carrying costs and reduced risk of obsolete inventory.

2. Days of Sales Outstanding (DSO):
- Amazon's DSO has fluctuated over the quarters but has shown a general downward trend from Q1 2022 to Q4 2023, indicating a faster collection of receivables.
- A lower DSO suggests that the company is collecting payments from customers more quickly, improving cash flow and reducing the risk of bad debts.

3. Number of Days of Payables:
- Amazon's number of days of payables has varied over the quarters but has remained within a relatively stable range, indicating consistent payment terms with suppliers.
- The company's ability to manage its payables effectively may help in optimizing cash flow and maintaining good relationships with suppliers.

Overall, the trends in these activity ratios suggest that Amazon.com Inc. has been successful in enhancing its operational efficiency and working capital management, which can positively impact its financial performance and liquidity position.

Long-term

	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
Fixed asset turnover	2.80	2.80	2.76	2.74	2.74	2.82	2.78	2.82	2.92	3.10	3.31	8.01	8.55	3.47	3.71	3.79	3.84	3.91	3.88	3.94
Total asset turnover	1.08	1.13	1.12	1.12	1.11	1.17	1.15	1.16	1.11	1.19	1.23	1.29	1.20	1.23	1.24	1.33	1.24	1.33	1.31	1.35

The fixed asset turnover ratio for Amazon.com Inc. remained relatively stable over the last eight quarters, ranging from 2.75 to 2.84. This indicates that the company generated approximately $2.75 to $2.84 in revenue for every dollar invested in fixed assets during this period. The consistent high fixed asset turnover suggests that Amazon is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio for Amazon fluctuated slightly between 1.09 and 1.17 over the same period. This ratio signifies that the company generated between $1.09 and $1.17 in revenue for every dollar of assets it owned. Although there was some variability, the total asset turnover ratio generally reflects that Amazon effectively utilizes its total assets to generate revenue.

Overall, both the fixed asset turnover and total asset turnover ratios indicate that Amazon.com Inc. efficiently leverages its assets to drive revenue generation and are indicative of the company's strong operational efficiency and effectiveness in utilizing its assets for sales generation.