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Amazon.com Inventory Turnover

: 2.87 (As of Jun. 2022)
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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Amazon.com's Cost of Goods Sold for the three months ended in Jun. 2022 was $104,838 Mil. Amazon.com's Average Total Inventories for the quarter that ended in Jun. 2022 was $36,570 Mil. Amazon.com's Inventory Turnover for the quarter that ended in Jun. 2022 was 2.87.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Amazon.com's Days Inventory for the three months ended in Jun. 2022 was 31.83.

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's Inventory-to-Revenue for the quarter that ended in Jun. 2022 was 0.30.


Amazon.com Inventory Turnover Historical Data

The historical data trend for Amazon.com's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Amazon.com Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Inventory Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.62 12.16 12.83 15.11 14.30

Amazon.com Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.99 3.48 3.79 3.01 2.87

Amazon.com Inventory Turnover Calculation

Amazon.com's Inventory Turnover for the fiscal year that ended in Dec. 2021 is calculated as

Inventory Turnover (A: Dec. 2021 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2021 ) / ((Total Inventories (A: Dec. 2020 ) + Total Inventories (A: Dec. 2021 )) / count )
=403507 / ((23795 + 32640) / 2 )
=403507 / 28217.5
=14.30

Amazon.com's Inventory Turnover for the quarter that ended in Jun. 2022 is calculated as

Inventory Turnover (Q: Jun. 2022 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2022 ) / ((Total Inventories (Q: Mar. 2022 ) + Total Inventories (Q: Jun. 2022 )) / count )
=104838 / ((34987 + 38153) / 2 )
=104838 / 36570
=2.87

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Amazon.com  (NAS:AMZN) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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

Amazon.com's Days Inventory for the three months ended in Jun. 2022 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2022 )/Cost of Goods Sold (Q: Jun. 2022 )*Days in Period
=36570/104838*365 / 4
=31.83

2. 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's Inventory to Revenue for the quarter that ended in Jun. 2022 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=36570 / 121234
=0.30

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.


Amazon.com Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Amazon.com's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Amazon.com Business Description

Amazon.com logo
Address
410 Terry Avenue North, Seattle, WA, USA, 98109-5210
Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $578 billion in estimated physical/digital online gross merchandise volume, or GMV, in 2021. Retail related revenue represents approximately 80% of total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (10% to 15%), advertising services (5%), and other the remainder. International segments constitute 25% to 30% of Amazon's non-AWS sales, led by Germany, the United Kingdom, and Japan.
Executives
Jassy Andrew R director, officer: President and CEO PO BOX 81226 SEATTLE WA 98108-1226
Cooper Edith W director C/O ETSY, INC. 117 ADAMS STREET BROOKLYN NY 11249
Selipsky Adam officer: CEO Amazon Web Services PO BOX 81226 SEATTLE WA 98108
Clark David H officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108
Alexander Keith Brian director P.O. BOX 81226 SEATTLE WA 98108-1226
Nooyi Indra K director 700 ANDERSON HILL RD PURCHASE NY 10577
Bezos Jeffrey P director, 10 percent owner, officer: Chairman, CEO and President PO BOX 81226 PO BOX 81226 SEATTLE WA 98108-1226
Mcgrath Judith A director PO BOX 81226 SEATTLE WA 98108
Zapolsky David officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108
Brewer Rosalind G director C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202
Wilke Jeffrey A officer: CEO Worldwide Consumer PO BOX 81226 SEATTLE WA 98108-1226
Huttenlocher Daniel P director ONE RIVERFRONT PLAZA CORNING NY 14831
Weeks Wendell P director ONE RIVERFRONT PLZ CORNING NY 14831
Olsavsky Brian T officer: Senior Vice President and CFO PO BOX 81226 SEATTLE WA 98108
Gordon William B director

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