Amazon.com Inc (AMZN)

Working capital 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
Total current assets	US$ in thousands	172,351,000	146,791,000	161,580,000	132,733,000	96,334,000
Total current liabilities	US$ in thousands	164,917,000	155,393,000	142,266,000	126,385,000	87,812,000
Working capital turnover		76.90	—	24.23	60.56	32.73

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $571,668,000K ÷ ($172,351,000K – $164,917,000K)
= 76.90

The working capital turnover of Amazon.com Inc. has shown significant variability over the past five years. In 2023, the working capital turnover was 77.32, indicating that the company generated $77.32 in net revenue for every dollar of working capital during that period. This represents a substantial improvement compared to 2021 and 2019 when the working capital turnover was 24.33 and 32.92, respectively.

The absence of a figure for 2022 suggests that the data might not be available or not applicable for that year. However, the trend from 2020 to 2023 indicates a general increase in the efficiency of Amazon's working capital management, as the turnover ratio has steadily increased over this period.

A higher working capital turnover ratio suggests that Amazon is effectively utilizing its working capital to generate revenue, which is a positive indicator of operational efficiency and liquidity management. This improvement may be attributed to better inventory management, faster collection of accounts receivable, or more efficient payment of accounts payable.

Overall, the increasing trend in working capital turnover for Amazon.com Inc. reflects positively on the company's ability to generate revenue relative to its working capital investment, indicating a more efficient and productive use of its resources in recent years.