Could you please elaborate on Amazon's net working capital? Specifically, how is it calculated, and what does it signify in terms of the company's financial health and operational efficiency? Additionally, how does Amazon's net working capital compare to its competitors within the retail industry? Are there any key factors that contribute to its current state, and what impact could potential changes have on the company's overall performance?
7 answers
CryptoAlchemyMaster
Mon Sep 02 2024
From fiscal years ending December 2019 to 2023, Amazon.com's net working capital averaged at a negative value of -53.666 billion.
isabella_bailey_economist
Mon Sep 02 2024
Amazon's ability to maintain a negative net working capital position is often attributed to its strong cash flow and effective inventory management.
Riccardo
Mon Sep 02 2024
This negative net working capital indicates that Amazon's current liabilities exceed its current assets, which is a common practice for technology and e-commerce companies.
Alessandro
Mon Sep 02 2024
Despite the negative average, Amazon's net working capital varied throughout the period, reflecting the dynamic nature of its business operations.
Silvia
Mon Sep 02 2024
The median net working capital for the same period was -59.573 billion, highlighting a slightly more negative median position compared to the average.