Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Netflix Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The liquidity position, as indicated by the presented ratios, demonstrates a generally stable trend with some fluctuations over the observed period. The current, quick, and cash ratios all exhibit similar patterns, suggesting a consistent relationship between current assets, liquid assets, and readily available cash. An initial period of improvement is followed by a period of decline, then a subsequent recovery.
- Current Ratio
- The current ratio experienced a gradual increase from 1.05 in the first quarter of 2022 to 1.33 in the second quarter of 2023. This indicates improving ability to cover short-term liabilities with short-term assets. A subsequent decline to 0.95 by the second quarter of 2024 suggests a weakening in this ability. However, the ratio recovered to 1.22 by the end of 2024 and remained relatively stable through the first half of 2025, ending at 1.19. This suggests a cyclical pattern with periods of strengthening and weakening liquidity.
- Quick Ratio
- The quick ratio mirrored the trend of the current ratio, increasing from 0.78 in the first quarter of 2022 to 0.99 in the second quarter of 2023. This indicates an improvement in the ability to meet short-term obligations with the most liquid assets. A similar decline to 0.66 was observed by the second quarter of 2024, followed by a recovery to 0.89 by the end of 2024 and stabilization at 0.83 by the end of 2025. The quick ratio consistently remained below 1 throughout the period, indicating that the company may need to liquidate current assets to cover immediate liabilities.
- Cash Ratio
- The cash ratio followed the same general pattern as the current and quick ratios, increasing from 0.78 in the first quarter of 2022 to 0.99 in the second quarter of 2023, then declining to 0.66 by the second quarter of 2024. A recovery to 0.89 by the end of 2024 was observed, followed by stabilization at 0.83 by the end of 2025. The cash ratio consistently demonstrates a strong position in terms of immediately available funds, though it also experienced the same cyclical fluctuations as the other liquidity measures.
Overall, the observed liquidity ratios suggest a business that maintains a reasonable, though sometimes fluctuating, ability to meet its short-term obligations. The consistent correlation between the three ratios indicates that changes in liquidity are driven by overall shifts in current asset management rather than specific changes in inventory or other less liquid components.
Current Ratio
Netflix Inc., current ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Current assets | 13,020,191) | 12,962,935) | 11,993,106) | 11,697,632) | 13,100,379) | 12,129,099) | 9,615,553) | 9,921,313) | 9,918,133) | 10,779,474) | 11,506,336) | 10,482,623) | 9,266,473) | 8,816,903) | 7,840,778) | 8,098,015) | |||||
| Current liabilities | 10,980,930) | 9,731,859) | 8,942,335) | 9,718,519) | 10,755,400) | 10,707,126) | 10,139,999) | 9,289,217) | 8,860,655) | 8,338,718) | 8,675,805) | 8,316,070) | 7,930,974) | 7,765,924) | 7,500,022) | 7,739,656) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 1.19 | 1.33 | 1.34 | 1.20 | 1.22 | 1.13 | 0.95 | 1.07 | 1.12 | 1.29 | 1.33 | 1.26 | 1.17 | 1.14 | 1.05 | 1.05 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | 2.01 | 1.75 | 1.90 | 1.77 | 1.84 | 1.95 | 2.08 | 2.15 | 2.10 | 2.04 | 2.17 | 2.35 | 2.38 | 2.52 | 2.81 | 2.87 | |||||
| Comcast Corp. | 0.88 | 0.88 | 0.91 | 0.65 | 0.68 | 0.72 | 0.66 | 0.59 | 0.60 | 0.70 | 0.76 | 0.69 | 0.78 | 0.84 | 0.88 | 0.86 | |||||
| Meta Platforms Inc. | 2.60 | 1.98 | 1.97 | 2.66 | 2.98 | 2.73 | 2.83 | 2.68 | 2.67 | 2.57 | 2.32 | 2.07 | 2.20 | 2.57 | 2.52 | 2.81 | |||||
| Trade Desk Inc. | — | 1.71 | 1.71 | 1.81 | 1.86 | 1.85 | 1.80 | 1.79 | 1.72 | 1.87 | 1.87 | 1.90 | 1.90 | 1.91 | 1.92 | 1.91 | |||||
| Walt Disney Co. | 0.71 | 0.72 | 0.67 | 0.68 | 0.73 | 0.72 | 0.75 | 0.84 | 1.05 | 1.07 | 1.01 | 0.99 | 1.00 | 1.02 | 1.06 | 1.10 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 13,020,191 ÷ 10,980,930 = 1.19
2 Click competitor name to see calculations.
The current ratio exhibited a generally increasing trend from March 31, 2022, through June 30, 2023, followed by fluctuations and a slight decline towards the end of the observed period. Initial values hovered around 1.05, indicating a basic ability to cover short-term obligations with short-term assets. The ratio peaked at 1.34 in June 2023 before experiencing some volatility.
- Overall Trend
- From the first half of 2022 to the first half of 2023, the current ratio demonstrated consistent improvement. This suggests a strengthening short-term financial position during this period. However, the subsequent quarters reveal a less consistent pattern, with the ratio decreasing to 0.95 by June 2024 before recovering somewhat.
- Period of Growth (Mar 31, 2022 – Jun 30, 2023)
- The current ratio increased from 1.05 to 1.33 over this period. This growth indicates that current assets were increasing at a faster rate than current liabilities, or that current liabilities were being reduced more rapidly than current assets. This improvement could be attributed to effective working capital management or increased liquidity.
- Period of Volatility (Jul 31, 2023 – Dec 31, 2025)
- Following the peak in June 2023, the current ratio experienced fluctuations. It decreased to 1.12 by December 2023, then rose to 1.22 by December 2024, before declining again to 1.19 by December 2025. This volatility suggests a less stable short-term financial position compared to the prior period. The dip to 0.95 in June 2024 is notable, indicating a temporary weakening in the ability to cover short-term liabilities.
- Recent Performance (Mar 31, 2024 – Dec 31, 2025)
- The most recent data shows a slight recovery from the low of 0.95 in June 2024, reaching 1.19 by December 2025. While this represents an improvement, the ratio remains below the peak observed in June 2023. The current ratio at the end of the observed period is 1.19, which still indicates a reasonable, but not exceptionally strong, ability to meet short-term obligations.
In conclusion, the current ratio demonstrates a period of strengthening liquidity followed by increased volatility. While the ratio remains above 1.0 for most of the observed period, the fluctuations and recent decline warrant continued monitoring to ensure sustained short-term financial health.
Quick Ratio
Netflix Inc., quick ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cash and cash equivalents | 9,033,681) | 9,287,287) | 8,177,405) | 7,199,848) | 7,804,733) | 7,457,025) | 6,624,939) | 7,024,766) | 7,116,913) | 7,353,245) | 7,662,788) | 6,714,594) | 5,147,176) | 6,113,733) | 5,819,449) | 6,008,946) | |||||
| Short-term investments | 28,678) | 37,105) | 213,115) | 1,171,142) | 1,779,006) | 1,766,902) | 30,973) | 20,973) | 20,973) | 514,201) | 914,201) | 1,112,910) | 911,276) | —) | —) | —) | |||||
| Total quick assets | 9,062,359) | 9,324,392) | 8,390,520) | 8,370,990) | 9,583,739) | 9,223,927) | 6,655,912) | 7,045,739) | 7,137,886) | 7,867,446) | 8,576,989) | 7,827,504) | 6,058,452) | 6,113,733) | 5,819,449) | 6,008,946) | |||||
| Current liabilities | 10,980,930) | 9,731,859) | 8,942,335) | 9,718,519) | 10,755,400) | 10,707,126) | 10,139,999) | 9,289,217) | 8,860,655) | 8,338,718) | 8,675,805) | 8,316,070) | 7,930,974) | 7,765,924) | 7,500,022) | 7,739,656) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.83 | 0.96 | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | 1.85 | 1.56 | 1.72 | 1.60 | 1.66 | 1.76 | 1.90 | 1.98 | 1.94 | 1.87 | 2.02 | 2.20 | 2.22 | 2.29 | 2.62 | 2.72 | |||||
| Comcast Corp. | 0.70 | 0.69 | 0.71 | 0.51 | 0.53 | 0.60 | 0.54 | 0.49 | 0.50 | 0.56 | 0.61 | 0.55 | 0.62 | 0.63 | 0.68 | 0.71 | |||||
| Meta Platforms Inc. | 2.42 | 1.67 | 1.71 | 2.50 | 2.82 | 2.57 | 2.69 | 2.55 | 2.55 | 2.43 | 2.20 | 1.91 | 2.01 | 2.34 | 2.34 | 2.62 | |||||
| Trade Desk Inc. | — | 1.64 | 1.68 | 1.79 | 1.83 | 1.81 | 1.75 | 1.77 | 1.69 | 1.84 | 1.84 | 1.87 | 1.87 | 1.88 | 1.87 | 1.85 | |||||
| Walt Disney Co. | 0.55 | 0.57 | 0.54 | 0.55 | 0.54 | 0.53 | 0.57 | 0.69 | 0.85 | 0.87 | 0.83 | 0.83 | 0.83 | 0.87 | 0.91 | 0.98 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,062,359 ÷ 10,980,930 = 0.83
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates fluctuations, generally remaining below one until the latter half of 2023, after which it exhibited increased volatility. An initial period of relative stability is followed by a notable improvement and subsequent decline.
- Initial Stability (Mar 31, 2022 – Dec 31, 2022)
- The quick ratio remained relatively consistent, fluctuating between 0.76 and 0.79. This suggests a stable, though limited, ability to meet short-term obligations with highly liquid assets during this timeframe. The ratio consistently indicates that the entity possesses less than one dollar of quick assets for every dollar of current liabilities.
- Improvement and Peak (Mar 31, 2023 – Jun 30, 2023)
- A significant increase in the quick ratio is observed, rising from 0.94 in March 2023 to a peak of 0.99 in June 2023. This improvement indicates a strengthening of the entity’s short-term liquidity position, with quick assets approaching the level of current liabilities. This period represents the strongest liquidity position observed throughout the analyzed timeframe.
- Subsequent Decline and Volatility (Sep 30, 2023 – Dec 31, 2024)
- Following the peak, the quick ratio experienced a decline, falling to 0.81 by December 2023 and further to 0.66 by June 2024. This suggests a weakening of the short-term liquidity position. A partial recovery to 0.86 and 0.89 is then seen in the subsequent two quarters, followed by a decline to 0.76 by March 2025. This period is characterized by increased volatility, indicating potential shifts in the composition of quick assets and current liabilities.
- Recent Trend (Mar 31, 2025 – Dec 31, 2025)
- The quick ratio shows a slight increase to 0.96 in September 2025, before decreasing to 0.83 by December 2025. This suggests a recent stabilization, though still below the peak observed in June 2023. The latest value indicates a return to a liquidity position similar to that observed in the latter half of 2023.
Overall, the quick ratio demonstrates a pattern of initial stability, a period of improvement, followed by a decline and increased fluctuation. While the ratio occasionally exceeds 0.9, it frequently remains below 1, indicating a potential vulnerability in meeting short-term obligations without relying on inventory liquidation.
Cash Ratio
Netflix Inc., cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cash and cash equivalents | 9,033,681) | 9,287,287) | 8,177,405) | 7,199,848) | 7,804,733) | 7,457,025) | 6,624,939) | 7,024,766) | 7,116,913) | 7,353,245) | 7,662,788) | 6,714,594) | 5,147,176) | 6,113,733) | 5,819,449) | 6,008,946) | |||||
| Short-term investments | 28,678) | 37,105) | 213,115) | 1,171,142) | 1,779,006) | 1,766,902) | 30,973) | 20,973) | 20,973) | 514,201) | 914,201) | 1,112,910) | 911,276) | —) | —) | —) | |||||
| Total cash assets | 9,062,359) | 9,324,392) | 8,390,520) | 8,370,990) | 9,583,739) | 9,223,927) | 6,655,912) | 7,045,739) | 7,137,886) | 7,867,446) | 8,576,989) | 7,827,504) | 6,058,452) | 6,113,733) | 5,819,449) | 6,008,946) | |||||
| Current liabilities | 10,980,930) | 9,731,859) | 8,942,335) | 9,718,519) | 10,755,400) | 10,707,126) | 10,139,999) | 9,289,217) | 8,860,655) | 8,338,718) | 8,675,805) | 8,316,070) | 7,930,974) | 7,765,924) | 7,500,022) | 7,739,656) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.83 | 0.96 | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | 1.23 | 0.99 | 1.09 | 1.04 | 1.07 | 1.15 | 1.29 | 1.40 | 1.36 | 1.39 | 1.52 | 1.67 | 1.64 | 1.76 | 2.04 | 2.16 | |||||
| Comcast Corp. | 0.28 | 0.29 | 0.30 | 0.20 | 0.18 | 0.23 | 0.17 | 0.16 | 0.15 | 0.19 | 0.22 | 0.17 | 0.17 | 0.20 | 0.25 | 0.30 | |||||
| Meta Platforms Inc. | 1.95 | 1.20 | 1.26 | 2.07 | 2.32 | 2.13 | 2.15 | 2.07 | 2.05 | 2.00 | 1.79 | 1.48 | 1.51 | 1.84 | 1.82 | 2.08 | |||||
| Trade Desk Inc. | — | 0.48 | 0.57 | 0.65 | 0.67 | 0.66 | 0.60 | 0.62 | 0.55 | 0.71 | 0.70 | 0.73 | 0.71 | 0.74 | 0.73 | 0.71 | |||||
| Walt Disney Co. | 0.17 | 0.16 | 0.17 | 0.16 | 0.17 | 0.17 | 0.20 | 0.23 | 0.46 | 0.41 | 0.37 | 0.31 | 0.40 | 0.42 | 0.45 | 0.48 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 9,062,359 ÷ 10,980,930 = 0.83
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates fluctuations, generally indicating a variable capacity to meet short-term obligations with solely cash and cash equivalents. An initial period of relative stability is followed by improvement, then a decline, and finally a period of renewed strengthening.
- Initial Stability (Mar 31, 2022 - Dec 31, 2022)
- The cash ratio begins at 0.78 and remains relatively consistent, oscillating between 0.76 and 0.79 throughout this timeframe. This suggests a stable, though not exceptionally strong, short-term liquidity position. The company maintains approximately 78-79 cents of cash for every dollar of current liabilities.
- Improvement (Mar 31, 2023 - Jun 30, 2023)
- A notable increase is observed, with the cash ratio rising from 0.94 to 0.99. This indicates a strengthening of the company’s immediate liquidity, with nearly a dollar of cash available for each dollar of current liabilities. This improvement is likely attributable to an increase in total cash assets during this period.
- Decline (Sep 30, 2023 - Jun 30, 2024)
- Following the peak, the cash ratio experiences a downward trend, decreasing from 0.94 to 0.66. This decline suggests a weakening in the company’s ability to cover its current liabilities with available cash. The decrease is more pronounced in the latter half of this period, coinciding with a substantial increase in current liabilities.
- Recovery and Stabilization (Sep 30, 2024 - Dec 31, 2025)
- The cash ratio begins to recover, rising to 0.86 by September 30, 2024, and peaking at 0.96 by September 30, 2025. However, it concludes the analyzed period at 0.83. This indicates a renewed strengthening of short-term liquidity, although the final value suggests a slight pullback. The company demonstrates an ability to rebuild its cash position relative to its current obligations during this phase.
Overall, the cash ratio exhibits cyclical behavior. While the company generally maintains a positive cash ratio throughout the period, the fluctuations highlight a dynamic liquidity position that is sensitive to changes in both cash holdings and current liabilities.