Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Amazon.com Inc., short-term (operating) activity ratios
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
| 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 | 6.99 | 6.67 | 7.04 | 7.48 | 7.72 | |
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
| 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 | 17.84 | 17.95 | 21.21 | 21.81 | 21.46 | |
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
| 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 | 5.18 | 4.80 | 4.66 | 4.74 | 5.51 | |
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
| 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 | 14.99 | 18.57 | 11.02 | 13.68 | 25.90 | |
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
| 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 | 55 | 52 | 49 | 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
| 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
| 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 | 75 | 69 | 66 | 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
| 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 | 76 | 78 | 77 | 66 | |
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
| 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 | -2 | |
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 + 22 – 102 = -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. |