Amazon.com Inc. (NASDAQ:AMZN)

The data reveals several trends and fluctuations in key operational efficiency ratios and associated period metrics over the observed periods.

Inventory Turnover

This ratio shows some variability across quarters. It peaked at 10.9 during September 2021 and reached a low of approximately 7.3 in September 2022. From early 2023 onwards, the turnover ratio generally increased, reaching values above 9.0 by mid to late 2024, indicating a trend towards more efficient inventory management in recent periods.

Payables Turnover

The payables turnover ratio exhibits fluctuations between roughly 3.2 and 4.3. The ratio increased from around 3.2 in early 2020 to a peak of 4.34 in June 2023, demonstrating accelerating payment to suppliers during that time. Subsequently, it declined somewhat but remained above the initial low levels, suggesting some variation in payment cycles.

Working Capital Turnover

There is significant volatility in working capital turnover figures. The ratio was high in the early to middle periods, with peaks such as 69.81 in June 2021 and 60.82 in March 2021, but dropped markedly to values around 19.23 to 31.5 in late 2020 and early 2021. Data gaps are present for some intermediate periods. From early 2024 onward, the ratio showed strengthening trends, rising from around 39.93 in September 2024 to 76.74 in March 2025, indicating improving efficiency in utilizing working capital over time.

Average Inventory Processing Period

The average number of days to process inventory generally increased from 33 days in September 2020 to a high around 50 days in September 2022, suggesting slower inventory turnover in that interval. After this peak, the period declined to values near 37-40 days by early 2024 and remained relatively stable around this shorter duration through early 2025, reflecting enhanced inventory management speeds.

Average Payables Payment Period

The average days payable fluctuated notably, with a decreasing trend from 113 days in March 2020 to lows near 84-86 days between late 2022 and mid-2023, indicating faster payments during that span. Later, the period grew back into the 90s and early 100s by late 2024 and early 2025, reflecting more extended payment terms or slower payables turnover in those recent quarters.

Overall, the company’s operational efficiency metrics demonstrate periods of both tightening and loosening management of inventory and payables. Recent data suggest a trend towards improved inventory turnover and working capital utilization, while the payment period to suppliers has shown some lengthening after prior reductions. This mixed pattern may reflect adjustments in supply chain strategies, cash flow management, or market conditions influencing operational cycle timings.

The quarterly financial data reveals several notable trends and patterns in cost of sales, inventories, and inventory turnover ratios over the analyzed periods.

Cost of Sales

The cost of sales exhibits a generally increasing trend across the periods, reflecting growth in business activity or higher input costs. From approximately 44.3 billion USD in Q1 2020, it rises steadily with some fluctuations, reaching close to 98.9 billion USD by Q4 2024. Some quarters, especially Q4 of each year, consistently show higher costs, indicating possible seasonality effects. There are minor declines or slower growth in certain quarters, such as Q1 2023 and Q1 2025, suggesting possible cost management or seasonal downturns.

Inventories

Inventories show an upward trend initially, increasing from around 18.9 billion USD in Q1 2020 to a peak near 38.2 billion USD during mid-2022. However, the data indicates some volatility after this point, with inventories decreasing slightly in several quarters from late 2022 through early 2025, showing a range roughly between 31 billion and 36 billion USD. This fluctuation may reflect adjustments in inventory management strategy or responses to demand changes.

Inventory Turnover Ratio

The inventory turnover ratio starts at 9.8 in Q1 2020 (with prior quarters missing data), then shows a mostly stable pattern around 7.3 to 10.9 across the periods. Notably, there is a decline in turnover ratio in late 2020 into 2021 (falling to approximately 7.3-8.4), indicating a slower inventory movement during these quarters. Thereafter, the ratio improves somewhat, almost reaching 9.9 in mid-2024 before fluctuating slightly again. These changes suggest varying efficiency in inventory management, possibly tied to supply chain conditions or demand variability.

Overall, the data suggests continual growth in sales cost consistent with expanding operations, accompanied by active inventory management that has adapted to changing market conditions. The inventory turnover ratio's variability points to intermittent shifts in inventory efficiency, which may warrant further analysis to optimize working capital and reduce holding costs.

The analysis of the provided financial data reveals several notable trends regarding cost of sales, accounts payable, and payables turnover ratios over multiple quarterly periods.

Cost of Sales

The cost of sales exhibits a generally increasing trend over the observed timeframe. Starting at approximately 44,257 million USD in March 2020, it rises significantly to a peak near 92,553 million USD by December 2024. The data features some fluctuations, with occasional decreases in certain quarters (e.g., from 82,835 million USD in December 2020 to 66,499 million USD in March 2022), yet the overall trajectory reflects growth indicative of expanding operations or rising input costs.

Accounts Payable

Accounts payable also show an upward trajectory from 40,056 million USD in March 2020 to around 94,363 million USD in December 2024, consistent with the rising cost of sales. This increase suggests growing liabilities toward suppliers, which might coincide with the company's scaling activities or extended credit terms. Fluctuations are observed throughout multiple quarters, exemplifying periodic variations in payment cycles or inventory purchases.

Payables Turnover Ratio

The payables turnover ratio, reported intermittently starting from March 2021, fluctuates between approximately 3.22 and 4.34 times per year. Notably, the ratio peaks near 4.34 in June 2023 and remains mostly above 3.5 in subsequent quarters. These figures imply that accounts payable turnover speeds up or slows down somewhat variably, reflecting changes in how efficiently the company manages its payables. A generally moderate ratio suggests a balanced payment behavior to suppliers without aggressive delay or overly rapid settlements.

Overall, the synchronized increases in cost of sales and accounts payable indicate business growth, while the relatively stable payables turnover ratio suggests consistent supplier payment management amid expanding scale. Periodic fluctuations in these metrics may reflect seasonal or operational factors impacting procurement and payment practices.

Working Capital

The working capital exhibits significant fluctuations over the analyzed periods. Starting at 6,274 million US dollars in March 2020, it increased sharply to peak levels around mid-2021, reaching values above 23,000 million US dollars in June 2021. Thereafter, a notable decline is observed, with working capital turning negative from March 2022 and remaining negative through the end of 2023. From early 2024, the trend reverses, with working capital recovering to positive values and stabilizing above 8,000 million US dollars by March 2025. This pattern indicates periods of both liquidity expansions and contractions, suggesting varying operational and financial conditions across the quarters.

Net Sales

Net sales displayed an overall upward trajectory with some cyclicality consistent with typical seasonal patterns. The sales value began at approximately 75,452 million US dollars in March 2020 and progressively increased, occasionally experiencing quarterly dips, such as in the first quarter of 2022. The highest recorded sales occurred by the end of 2024, reaching approximately 187,792 million US dollars in December 2024, before a slight decrease to 155,667 million US dollars in March 2025. Despite some fluctuations, the general trend reflects robust revenue growth over the span of five years.

Working Capital Turnover

Working capital turnover ratios were reported intermittently. Available data from late 2020 through 2021 show very high turnover ratios, peaking at 69.81 in June 2021 and remaining elevated, which indicates efficient utilization of working capital relative to net sales during this period. Data gaps exist between late 2021 and early 2024. When turnover values resume in 2024, they exhibit generally lower figures ranging from approximately 39.93 to 77.32, indicating variability in how effectively the company is generating sales from working capital during these quarters. Overall, the ratio tends to reflect fluctuations in working capital levels combined with strong net sales performance.

The inventory turnover ratio and the average inventory processing period data reflect notable trends over the analyzed quarters. The inventory turnover ratio, which had no available data prior to March 31, 2020, begins at 9.8 and experiences a general decline through mid-2022, reaching a low of 7.3 in September 2022. Following this period, the ratio shows a recovery trend with fluctuations, peaking again at 9.94 by June 30, 2024, before slightly declining towards March 31, 2025.

Inversely, the average inventory processing period demonstrates a complementary trend. Starting with 37 days in March 2020, it decreases to a low of 33 days by September 2020 and then steadily increases, reaching a high of 50 days by September 2022. After this peak, the period shortens consistently, dropping to approximately 37 days by June 2024, with minor variations thereafter.

Inventory Turnover Ratio

The ratio begins at 9.8 and peaks at 10.9 in September 2021 before declining significantly to 7.3 in September 2022. Post this trough, it exhibits recovery, reaching a high point near 9.94 in mid-2024, followed by slight fluctuations.

Average Inventory Processing Period

This metric shows an initial reduction to 33 days, then increases sharply to 50 days by late 2022, indicating slower inventory movement. Subsequently, it decreases steadily to around 37–40 days by early 2025.

The inverse relationship between these two metrics aligns with expectations, as lower inventory turnover is commonly associated with longer inventory processing periods. The slowdown in turnover and increase in processing days during 2021 and 2022 suggest challenges in inventory management or changing market conditions affecting sales velocity. The trend reversal starting late 2022 indicates efforts toward optimizing inventory levels and improving turnover efficiency, contributing to faster inventory processing as reflected in the data.

Payables Turnover

The payables turnover ratio demonstrates moderate fluctuations over the analyzed periods, initially increasing from 3.22 to a peak around 4.34 before showing a slight decline towards the last recorded period at 3.70. The ratio generally remains within the range of approximately 3.2 to 4.3, indicating varying efficiency in the company’s ability to settle payables. The upward trends suggest periods of faster payment cycles, while the subsequent decreases could indicate a relative slowing in the payment process or changes in purchasing and credit terms.

Average Payables Payment Period

The average payables payment period, measured in days, inversely correlates with the payables turnover ratio. It begins at approximately 113 days and decreases to as low as 84 days at certain points, highlighting intervals where the company accelerated payments to suppliers. Later, the period increases again, reaching values above 100 days towards the end of the timeline, indicating a lengthening of the payment period. This pattern suggests that while the company managed to shorten its payment duration during some quarters, it reverted to more extended payment cycles in other periods, which could be part of strategic cash flow management.

Overall Trends and Insights

The data reveals a dynamic approach to payables management, with alternating phases of faster and slower payments. The correlation between the turnover ratio and payment period is consistent with standard financial principles, with higher turnover ratios matching shorter payment periods and vice versa. These shifts may reflect responses to internal liquidity requirements, negotiations with suppliers, or external economic conditions impacting credit terms. The variability indicates an ongoing adjustment process rather than a steady trend in one direction.