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Amazon.com Inc (AMZN)


This report was prepared for Amazon.com Inc (AMZN), a publicly traded company in the Specialty Retail industry. Amazon.com Inc is an online retailer. The Company sells its products through the website which provides services, such as advertising services and co-branded credit card agreements. It also offers electronic devices like Kindle e-readers and Fire tablets.
The 2016 top 10 largest companies in the Specialty Retail industry (by revenue) are Amazon.com Inc, Best Buy Co Inc, Alibaba Group Holding Ltd, Genuine Parts Co, AutoZone Inc, Canadian Tire Corp Ltd, Canadian Tire Corp Ltd, QVC Group Class A, Advance Auto Parts Inc, Vipshop Holdings Ltd. The data of 25 companies is used to calculate the percentiles. This report is based on 2016* data.

Amazon.com Inc (AMZN)

PercentileGraph 
MetricAMZN50th70th90th
507090
n
Operating Margin (%)3.19.916.327.7n=25
SG&A Expenses (%)20.124.722.017.6n=24
Research & Development (%)11.811.79.21.7n=5
Other Operational Expenses (%)0.13.00.10.1n=19
Cost of Goods Sold (%)65574722n=24
Cash Conversion Cycle (days)-3047-21-41n=20
Days Receivables Outstanding (days)201482n=24
Days of Inventory (days)45966010n=21
Days Payables Outstanding (days)956497232n=24
Fixed Asset Turns (turns)5.39.115.721.2n=25
© 2005-2018 PCOR.com
 
  50 70 90
The blue horizontal bar: Your current rank. The diamond: Your proposed target.
Solid green: The Leaders. Top performers for this metric; achieving a 90th percentile or higher ranking.
Light green: The Challengers. Companies ranked between 70th and 90th percentile.
Yellow: The Followers. Companies ranked between 50th and 70th percentile.
Orange: The Laggers. Companies in the bottom half of the industry (Ranking below the median performer).
*) The number of companies may differ by reported year and metric. YTD represents the latest quarterly data published by companies. Your position in the industry may change over time as we continue to expand our database by adding more companies and latest data released by companies. Please note that not all companies may have published data for the most recent year. Whilst we have taken all reasonable measures to ensure that the results reflected herein are correct, Process Core Group, LP and PCOR, LLC do not accept any liability for the accuracy of the information and no decision should be taken on the basis of the information contained herein before having confirmed the detail from other sources.

Profitability

Your Operating Margin is ranked in the bottom half of the industry (~10th percentile). As a first step consider initiatives that drive your Operating Margin to median performance.
  • Improving your Operating Margin by 6.8% will result in an increase of your annual net profit of $9,200M.
  • Your SG&A Expenses are around the 75th percentile performance. You may look into improving SG&A Expenses by 2.5% and reach industry leaders status.
  • Your Cost of Goods Sold are a major driver of your Operating Margin. Improving Cost of Goods Sold to mere median performance in your industry will gain you 8%.

Asset Efficiency

Your Cash Conversion Cycle is around the 85th percentile performance. You have a strategic advantage over the majority of companies in your industry. Drive your performance to the 90th percentile to join the leaders in your industry by reducing your Cash Conversion Cycle by 11 days.
  • A 11 days Cash Conversion Cycle improvement will free cash in the order of $9,700M.
  • Your Days of Inventory are around the 80th percentile performance. You may look into improving Days of Inventory by 35 days and reach industry leaders status.
Your Fixed Asset Turns is ranked in the bottom half of the industry (~25th percentile). As a first step consider initiatives that drive your Fixed Asset Turns to median performance.

    About this benchmark

    This report is based upon information provided by the subject Company and other companies through their publicly posted annual and/or quarterly reports. Numbers and assumptions are subject to change. These materials present illustrations of potential performance and cost savings, and do not guaranty future results, performance or cost savings. The materials are provided solely for informational purposes and does not constitute advise. Process Core Group makes no representation or warranties of any kind with respect to these materials, and shall not be liable for errors or omissions with respect to these materials.
    The furnishing of this document shall not be construed as an offer or as constituting a binding agreement on our part and/or affiliates to enter into any relationship. We provide this document as guidance only to illustrate estimated comparisons between the subject Company and other companies with respect to certain key performance indicators and drivers.

    About Process Core Group

    Economic challenges, global complexity and ever shorter fulfillment cycle times are driving organizations to create and manage supply chains that rapidly adapt to continuously changing strategic priorities. PCG helps clients achieve supply chain superiority by combining our global industry experience with key skills in supply chain strategy and planning, network management, sourcing, manufacturing, order fulfillment and delivery service management. We help our clients create and manage sustainable capability to make and manage their world-class performing supply chains.