Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

$24.99

Current Ratio
since 2005

Microsoft Excel

Calculation

Netflix Inc., current ratio, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in thousands


The analysis of the current assets, current liabilities, and current ratio over the given period reveals several important trends and changes in the company's short-term financial position.

Current Assets
Current assets showed an overall increasing trend from 2005 through 2024, starting at approximately 244 million US$ in 2005 and reaching over 13 billion US$ by 2024. Despite some fluctuations, the growth was substantial, with marked increases particularly noticeable after 2010, indicating an improvement in the company's ability to cover its short-term obligations with liquid or near-liquid assets. Notably, the asset values saw significant jumps around 2011-2013 and again progressively from 2016 onwards.
Current Liabilities
Current liabilities also demonstrated a growing trend over the same period, starting from about 138 million US$ in 2005 and rising to roughly 10.75 billion US$ by 2024. The increases in liabilities were substantial, especially between 2010 and 2017, with liabilities peaking and showing some volatility in the later years, reflecting a higher level of short-term obligations synchronizing with the asset increases. This upward movement suggests increased operational or financing activities requiring short-term funding.
Current Ratio
The current ratio, which measures the company's ability to cover its short-term liabilities with short-term assets, started at a healthy 1.77 in 2005. It peaked at 2.21 in 2006, indicating a strong liquidity position. However, from 2007 onwards, the ratio exhibited a general downward trend, interspersed with minor recoveries, falling as low as 0.9 in 2019, which may point to liquidity pressures during that year. In subsequent years, the ratio fluctuated between 0.9 and 1.25, ending at 1.22 in 2024. The fluctuating and sometimes below or near 1 value indicating periods where current liabilities sometimes approached or exceeded current assets, suggesting potential short-term liquidity stress at times despite overall asset growth.

In summary, while the company substantially increased both its current assets and liabilities over the analyzed years, implying business growth and expanded operations, the current ratio trends indicate challenges in consistently maintaining strong short-term liquidity. The ratio’s decline around the late 2010s highlights moments where liabilities rose faster than assets, warranting attention to working capital management going forward.


Comparison to Competitors

Netflix Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Media & Entertainment)


Comparison to Industry (Communication Services)