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Amazon.com (AMZN) Cash Conversion Cycle : -7.93 (As of Mar. 2024)


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What is Amazon.com Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Amazon.com's Days Sales Outstanding for the three months ended in Mar. 2024 was 29.08.
Amazon.com's Days Inventory for the three months ended in Mar. 2024 was 25.49.
Amazon.com's Days Payable for the three months ended in Mar. 2024 was 62.5.
Therefore, Amazon.com's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was -7.93.


Amazon.com Cash Conversion Cycle Historical Data

The historical data trend for Amazon.com's Cash Conversion Cycle 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 Cash Conversion Cycle Chart

Amazon.com Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.63 -19.71 -20.56 -10.58 -6.71

Amazon.com Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cash Conversion Cycle Get a 7-Day Free Trial 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 -3.91 -0.25 -2.67 -5.04 -7.93

Competitive Comparison of Amazon.com's Cash Conversion Cycle

For the Internet Retail subindustry, Amazon.com's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Amazon.com's Cash Conversion Cycle Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Amazon.com's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Amazon.com's Cash Conversion Cycle falls into.



Amazon.com Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Amazon.com's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=30.04+25.7-62.45
=-6.71

Amazon.com's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=29.08+25.49-62.5
=-7.93

* 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) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Amazon.com Cash Conversion Cycle Related Terms

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


Amazon.com (AMZN) Business Description

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 in 2021. Retail-related revenue represents approximately 80% of the total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (10%-15%), advertising services (5%), and other. International segments constitute 25%-30% of Amazon's non-AWS sales, led by Germany, the United Kingdom, and Japan.
Executives
Adam Selipsky officer: CEO Amazon Web Services PO BOX 81226, SEATTLE WA 98108
Douglas J Herrington officer: CEO Worldwide Amazon Stores PO BOX 81226, SEATTLE WA 98108
David Zapolsky officer: Senior Vice President PO BOX 81226, SEATTLE WA 98108
Andrew R Jassy director, officer: President and CEO PO BOX 81226, SEATTLE WA 98108-1226
Shelley Reynolds officer: Vice President PO BOX 81226, SEATTLE WA 98108
Brian T Olsavsky officer: Senior Vice President and CFO PO BOX 81226, SEATTLE WA 98108
Daniel P Huttenlocher director ONE RIVERFRONT PLAZA, CORNING NY 14831
Brad D Smith director 1040 13TH AVE, HUNTINGTON WV 25701
Jeffrey P Bezos director, 10 percent owner, officer: Chairman, CEO and President PO BOX 81226, SEATTLE WA 98108-1226
David H Clark officer: Senior Vice President PO BOX 81226, SEATTLE WA 98108
Jonathan Rubinstein director APPLE COMPUTER INC, 1 INFINITE LOOP, CUPERTINO CA 95014
Edith W Cooper director C/O ETSY, INC., 117 ADAMS STREET, BROOKLYN NY 11249
Judith A Mcgrath director PO BOX 81226, SEATTLE WA 98108
Jeffrey A Wilke officer: CEO Worldwide Consumer PO BOX 81226, SEATTLE WA 98108-1226
Patricia Q Stonesifer director PO BOX 81226, SEATTLE WA 98108-1226

Amazon.com (AMZN) Headlines

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