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GuruFocus has detected 3 Warning Signs with Amazon.com Inc $AMZN.
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Amazon.com Inc (NAS:AMZN)
Days Inventory
34.91 (As of Dec. 2016)

Amazon.com Inc's average inventory for the three months ended in Dec. 2016 was $11,079 Mil. Amazon.com Inc's cost of goods sold for the three months ended in Dec. 2016 was $28,959 Mil. Hence, Amazon.com Inc's days inventory for the three months ended in Dec. 2016 was 34.91.

AMZN' s Days Inventory Range Over the Past 10 Years
Min: 31.84   Max: 47.23
Current: 42.65

31.84
47.23

During the past 13 years, Amazon.com Inc's highest Days Inventory was 47.23. The lowest was 31.84. And the median was 41.93.

AMZN's Days Inventory is ranked higher than
79% of the 792 Companies
in the Global Specialty Retail industry.

( Industry Median: 91.88 vs. AMZN: 42.65 )

Amazon.com Inc's days inventory declined from Dec. 2015 (36.03) to Dec. 2016 (34.91).

Inventory can be measured by Days Sales of Inventory (DSI). Amazon.com Inc's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 23.11.

Inventory turnover measures how fast the company turns over its inventory within a year. Amazon.com Inc's inventory turnover for the three months ended in Dec. 2016 was 2.61.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Amazon.com Inc's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.25.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Amazon.com Inc's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (10243 + 11461) / 2 ) / 88265*365
=10852 / 88265*365
=44.88

Amazon.com Inc's Days Inventory for the quarter that ended in Dec. 2016 is calculated as:

Days Inventory (Q: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Sep. 2016 ) + Inventory (Q: Dec. 2016 )) / 2 ) / COGS (Q: Dec. 2016 )*Days in Period
=( (10696 + 11461) / 2 ) / 28959*365 / 4
=11078.5 / 28959*365 / 4
=34.91

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Amazon.com Inc's Days Sales of Inventory for the three months ended in Dec. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=11078.5/43741*365 / 4
=23.11

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Amazon.com Inc's Inventory Turnover for the three months ended in Dec. 2016 is calculated as

3. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Amazon.com Inc's Inventory to Revenue for the three months ended in Dec. 2016 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Amazon.com Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 33.0131.8434.3336.9240.1043.7645.2845.6947.2344.88

Amazon.com Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 43.5434.4646.4344.6644.8036.0347.9445.6043.5334.91
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