Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Amazon.com Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 9.15 8.40 8.34 9.80 8.08
Receivables turnover 16.86 19.32 23.26 26.09 22.26
Payables turnover 3.59 3.63 3.46 3.22 3.51
Working capital turnover 77.32 24.33 60.82 32.92
Average No. Days
Average inventory processing period 40 43 44 37 45
Add: Average receivable collection period 22 19 16 14 16
Operating cycle 62 62 60 51 61
Less: Average payables payment period 102 101 105 113 104
Cash conversion cycle -40 -39 -45 -62 -43

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Amazon.com Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Amazon.com Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Amazon.com Inc. payables turnover ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Amazon.com Inc. number of days of inventory outstanding improved from 2021 to 2022 and from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Amazon.com Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Amazon.com Inc. number of days of payables outstanding decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Amazon.com Inc. cash conversion cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Inventory Turnover

Amazon.com Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales 304,739 288,831 272,344 233,307 165,536
Inventories 33,318 34,405 32,640 23,795 20,497
Short-term Activity Ratio
Inventory turnover1 9.15 8.40 8.34 9.80 8.08
Benchmarks
Inventory Turnover, Competitors2
Home Depot Inc. 4.20 4.55 5.25 5.00 5.10
Lowe’s Cos. Inc. 3.50 3.65 3.71 3.73 3.85
TJX Cos. Inc. 6.21 5.82 5.66 6.13 6.08
Inventory Turnover, Sector
Consumer Discretionary Distribution & Retail 6.18 6.10 6.36 6.83 6.07
Inventory Turnover, Industry
Consumer Discretionary 7.05 6.73 7.05 7.53 7.82

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 304,739 ÷ 33,318 = 9.15

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Amazon.com Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

Amazon.com Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net sales 574,785 513,983 469,822 386,064 280,522
Customer receivables, net 34,100 26,600 20,200 14,800 12,600
Short-term Activity Ratio
Receivables turnover1 16.86 19.32 23.26 26.09 22.26
Benchmarks
Receivables Turnover, Competitors2
Home Depot Inc. 47.45 44.12 44.15 52.34 55.89
Lowe’s Cos. Inc.
TJX Cos. Inc. 88.70 93.79 69.69 108.00 112.54
Receivables Turnover, Sector
Consumer Discretionary Distribution & Retail 23.15 26.52 30.59 35.28 33.53
Receivables Turnover, Industry
Consumer Discretionary 17.96 17.99 21.11 21.76 21.69

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Receivables turnover = Net sales ÷ Customer receivables, net
= 574,785 ÷ 34,100 = 16.86

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Amazon.com Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Payables Turnover

Amazon.com Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales 304,739 288,831 272,344 233,307 165,536
Accounts payable 84,981 79,600 78,664 72,539 47,183
Short-term Activity Ratio
Payables turnover1 3.59 3.63 3.46 3.22 3.51
Benchmarks
Payables Turnover, Competitors2
Home Depot Inc. 9.14 7.45 7.52 9.33 9.16
Lowe’s Cos. Inc. 6.16 5.65 5.51 6.42 5.85
TJX Cos. Inc. 9.53 7.77 5.09 11.17 10.53
Payables Turnover, Sector
Consumer Discretionary Distribution & Retail 4.61 4.48 4.19 4.25 4.75
Payables Turnover, Industry
Consumer Discretionary 5.23 4.84 4.67 4.77 5.59

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 304,739 ÷ 84,981 = 3.59

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Amazon.com Inc. payables turnover ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Working Capital Turnover

Amazon.com Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current assets 172,351 146,791 161,580 132,733 96,334
Less: Current liabilities 164,917 155,393 142,266 126,385 87,812
Working capital 7,434 (8,602) 19,314 6,348 8,522
 
Net sales 574,785 513,983 469,822 386,064 280,522
Short-term Activity Ratio
Working capital turnover1 77.32 24.33 60.82 32.92
Benchmarks
Working Capital Turnover, Competitors2
Home Depot Inc. 16.81 417.56 24.87 76.81 59.68
Lowe’s Cos. Inc. 50.26 245.54 24.92 530.50
TJX Cos. Inc. 23.22 17.40 6.51 23.97 13.27
Working Capital Turnover, Sector
Consumer Discretionary Distribution & Retail 42.11 21.83 63.17 38.37
Working Capital Turnover, Industry
Consumer Discretionary 16.06 19.31 10.96 13.27 32.45

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Working capital turnover = Net sales ÷ Working capital
= 574,785 ÷ 7,434 = 77.32

2 Click competitor name to see calculations.


Average Inventory Processing Period

Amazon.com Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 9.15 8.40 8.34 9.80 8.08
Short-term Activity Ratio (no. days)
Average inventory processing period1 40 43 44 37 45
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Home Depot Inc. 87 80 70 73 72
Lowe’s Cos. Inc. 104 100 98 98 95
TJX Cos. Inc. 59 63 65 60 60
Average Inventory Processing Period, Sector
Consumer Discretionary Distribution & Retail 59 60 57 53 60
Average Inventory Processing Period, Industry
Consumer Discretionary 52 54 52 48 47

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 9.15 = 40

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Amazon.com Inc. number of days of inventory outstanding improved from 2021 to 2022 and from 2022 to 2023.

Average Receivable Collection Period

Amazon.com Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 16.86 19.32 23.26 26.09 22.26
Short-term Activity Ratio (no. days)
Average receivable collection period1 22 19 16 14 16
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Home Depot Inc. 8 8 8 7 7
Lowe’s Cos. Inc.
TJX Cos. Inc. 4 4 5 3 3
Average Receivable Collection Period, Sector
Consumer Discretionary Distribution & Retail 16 14 12 10 11
Average Receivable Collection Period, Industry
Consumer Discretionary 20 20 17 17 17

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 16.86 = 22

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Amazon.com Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.

Operating Cycle

Amazon.com Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 40 43 44 37 45
Average receivable collection period 22 19 16 14 16
Short-term Activity Ratio
Operating cycle1 62 62 60 51 61
Benchmarks
Operating Cycle, Competitors2
Home Depot Inc. 95 88 78 80 79
Lowe’s Cos. Inc.
TJX Cos. Inc. 63 67 70 63 63
Operating Cycle, Sector
Consumer Discretionary Distribution & Retail 75 74 69 63 71
Operating Cycle, Industry
Consumer Discretionary 72 74 69 65 64

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 40 + 22 = 62

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

Amazon.com Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 3.59 3.63 3.46 3.22 3.51
Short-term Activity Ratio (no. days)
Average payables payment period1 102 101 105 113 104
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Home Depot Inc. 40 49 49 39 40
Lowe’s Cos. Inc. 59 65 66 57 62
TJX Cos. Inc. 38 47 72 33 35
Average Payables Payment Period, Sector
Consumer Discretionary Distribution & Retail 79 81 87 86 77
Average Payables Payment Period, Industry
Consumer Discretionary 70 75 78 76 65

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.59 = 102

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Amazon.com Inc. number of days of payables outstanding decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Cash Conversion Cycle

Amazon.com Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 40 43 44 37 45
Average receivable collection period 22 19 16 14 16
Average payables payment period 102 101 105 113 104
Short-term Activity Ratio
Cash conversion cycle1 -40 -39 -45 -62 -43
Benchmarks
Cash Conversion Cycle, Competitors2
Home Depot Inc. 55 39 29 41 39
Lowe’s Cos. Inc.
TJX Cos. Inc. 25 20 -2 30 28
Cash Conversion Cycle, Sector
Consumer Discretionary Distribution & Retail -4 -7 -18 -23 -6
Cash Conversion Cycle, Industry
Consumer Discretionary 2 -1 -9 -11 -1

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 40 + 22102 = -40

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Amazon.com Inc. cash conversion cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.