Amazon.com Inc (AMZN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 30.63 | 32.98 | 31.62 | 29.13 | 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 |
| Days of sales outstanding (DSO) | days | 31.78 | 30.47 | 30.38 | 29.67 | 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 |
| Number of days of payables | days | 84.48 | 77.26 | 75.84 | 68.33 | 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 |
| Cash conversion cycle | days | -22.07 | -13.81 | -13.84 | -9.53 | -15.29 | -22.80 | -19.79 | -21.21 | -36.51 | -4.99 | -8.06 | -10.37 | -23.60 | -22.32 | -25.98 | -27.14 | -39.84 | -27.52 | -25.34 | -12.69 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 30.63 + 31.78 – 84.48
= -22.07
The cash conversion cycle of Amazon.com Inc has shown fluctuations over the years. The cycle represents the time it takes for the company to convert its resources (inventory and accounts receivable) into cash, and then reinvest that cash back into the business.
From March 2020 to December 2020, the company had a negative cash conversion cycle, indicating efficient management of its working capital. However, the cycle trended upwards from March 2021 to December 2022, suggesting a potential slowdown in converting resources into cash.
In the most recent periods up to December 2024, the cash conversion cycle decreased significantly, signifying improved efficiency in managing working capital. This trend indicates that the company has been able to optimize its operations to generate cash more quickly, which may positively impact its liquidity and overall financial health.
Overall, analyzing the cash conversion cycle provides insights into Amazon.com Inc's ability to efficiently manage its working capital and convert resources into cash, which is crucial for sustaining operations and facilitating further growth.
Peer comparison
Dec 31, 2024