Amazon.com Inc (AMZN)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	571,668,000	511,276,000	467,958,000	384,452,000	278,902,000
Receivables	US$ in thousands	52,253,000	42,360,000	32,891,000	24,542,000	20,816,000
Receivables turnover		10.94	12.07	14.23	15.67	13.40

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $571,668,000K ÷ $52,253,000K
= 10.94

The receivables turnover ratio measures how many times a company can convert its accounts receivable into cash during a specific period. A higher receivables turnover ratio indicates that the company is collecting its outstanding invoices more efficiently.

Analyzing Amazon.com Inc.'s receivables turnover over the past five years, we observe a decreasing trend from 2019 to 2023. In 2019, the receivables turnover ratio was 13.48, indicating that Amazon converted its accounts receivable into cash approximately 13.48 times during the year.

Subsequently, the ratio decreased to 15.73 in 2020, then to 14.28 in 2021, further dropping to 12.13 in 2022, and finally to 11.00 in 2023. The declining trend suggests that Amazon's ability to collect its outstanding invoices has weakened over the years.

A lower receivables turnover ratio could indicate potential issues with the company's credit policy, customer creditworthiness, collection process inefficiencies, or changes in sales volume or seasonality. It may also suggest that the company is extending longer credit terms to customers, leading to a longer collection cycle.

Further analysis and comparison with industry benchmarks or Amazon's competitors would provide more insights into the reasons behind the declining receivables turnover ratio and its potential impact on the company's overall financial performance and liquidity.