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-Q (reporting date: 2026-03-31), 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 current, quick, and cash ratios, demonstrates a fluctuating pattern over the observed period. Generally, the ratios exhibit an increasing trend through the first half of 2023, followed by a decline, and then a period of stabilization and further increases towards the end of the forecast period.
- Current Ratio
- The current ratio began at 1.05 and remained consistent through the first two quarters of 2022. An upward trend was then observed, peaking at 1.33 in June 2023. Subsequently, the ratio decreased to 1.12 by December 2023 before stabilizing around the 1.20-1.41 range through March 2026. This suggests a generally healthy ability to cover short-term liabilities with short-term assets, with some fluctuation.
- Quick Ratio
- Similar to the current ratio, the quick ratio remained stable at 0.78 for the initial two quarters of 2022. It then increased, reaching 0.99 in June 2023, before declining to 0.81 by December 2023. The quick ratio then showed a pattern of fluctuation, ending at 1.01 in March 2026. The quick ratio consistently remains below the current ratio, indicating that inventory and other less liquid current assets contribute to the overall current ratio value.
- Cash Ratio
- The cash ratio mirrored the trends of the current and quick ratios, starting at 0.78 and increasing to 0.99 in June 2023. A subsequent decrease to 0.81 was noted by December 2023. The ratio then fluctuated, ultimately reaching 1.01 in March 2026. The cash ratio consistently remains below both the current and quick ratios, highlighting the reliance on assets beyond immediately available cash to meet short-term obligations.
Overall, the observed liquidity ratios suggest a moderate level of liquidity. The increases in all three ratios through the first half of 2023 indicate improved short-term solvency. The subsequent declines and stabilization suggest a potential normalization of liquidity levels, with a slight upward trend towards the end of the period. The consistent relationship between the ratios – current ratio being highest, followed by quick, and then cash – indicates a consistent composition of current assets.
AI Ask an analyst for more
Current Ratio
Netflix Inc., current ratio calculation (quarterly data)
| Mar 31, 2026 | 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 | 17,070,982) | 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 | 12,131,578) | 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 | 1.41 | 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. | 1.92 | 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. | 0.87 | 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. | 2.35 | 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. | — | 1.61 | 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. | 0.67 | 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-Q (reporting date: 2026-03-31), 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 Q1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 17,070,982 ÷ 12,131,578 = 1.41
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 subsequent rise 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. A peak was reached in June 2023 at 1.33 before experiencing a decline.
- Overall Trend
- From the initial observation point, the current ratio generally improved, suggesting strengthening short-term financial health. However, this improvement was not consistent. A noticeable decrease occurred in the latter half of 2023, followed by a recovery and further increase into early 2026. The ratio concluded the period at 1.41, representing the highest value observed.
- Period: March 31, 2022 – June 30, 2023
- During this timeframe, the current ratio demonstrated consistent growth, increasing from 1.05 to 1.33. This indicates a progressive enhancement in the company’s capacity to meet its short-term liabilities with its short-term assets. The increase suggests improved liquidity management or a favorable shift in the composition of current assets and liabilities.
- Period: June 30, 2023 – December 31, 2023
- A decline in the current ratio was observed during this period, falling from 1.33 to 1.12. This suggests a potential weakening in the company’s short-term liquidity position. The decrease could be attributed to factors such as an increase in current liabilities or a decrease in current assets.
- Period: December 31, 2023 – March 31, 2026
- Following the decline, the current ratio experienced fluctuations, moving between 1.07 and 1.41. A recovery was evident, culminating in a ratio of 1.41 by March 31, 2026. This final value represents the strongest liquidity position observed throughout the analyzed period, indicating a renewed ability to comfortably cover short-term obligations.
The fluctuations in the current ratio suggest that the company’s short-term liquidity position is subject to change, potentially influenced by seasonal factors, operational cycles, or strategic financial decisions. The overall trend, however, indicates a generally positive trajectory in liquidity management over the observed timeframe.
AI Ask an analyst for more
Quick Ratio
Netflix Inc., quick ratio calculation (quarterly data)
| Mar 31, 2026 | 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 | 12,259,772) | 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) | 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 | 12,288,450) | 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 | 12,131,578) | 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 | 1.01 | 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. | 1.71 | 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. | 0.71 | 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. | 2.11 | 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. | — | 1.55 | 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. | 0.54 | 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-Q (reporting date: 2026-03-31), 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 Q1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 12,288,450 ÷ 12,131,578 = 1.01
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates fluctuations, generally remaining below one until late 2023, with a notable increase in the most recent quarters. This indicates a varying ability to meet short-term obligations with the most liquid assets. A review of the underlying components reveals the drivers of these changes.
- Overall Trend
- The quick ratio generally remained relatively stable between 0.76 and 0.79 from March 2022 through September 2022. A significant increase is observed from March 2023, peaking at 0.99 in June 2023, before declining to 0.83 in December 2023. The ratio then experiences another increase, reaching 1.01 in March 2026, representing the highest value in the analyzed period.
- Total Quick Assets
- Total quick assets exhibited an initial decline from March 2022 to June 2022, followed by a period of relative stability through December 2022. A substantial increase is then observed from March 2023 through June 2023, followed by a decrease through December 2023. The assets then trend upwards again, culminating in a significant increase to March 2026. This suggests changes in the composition of current assets, potentially related to cash, marketable securities, and accounts receivable.
- Current Liabilities
- Current liabilities consistently increased throughout the analyzed period. The rate of increase accelerated from June 2023, with the largest absolute increases occurring between June 2023 and December 2024. This consistent growth in liabilities likely contributes to the initial lower quick ratio values and necessitates a corresponding increase in quick assets to maintain or improve the ratio.
- Ratio Dynamics
- The fluctuations in the quick ratio are a result of the interplay between quick assets and current liabilities. The increase in the ratio in mid-2023 is attributable to a faster growth rate in quick assets compared to current liabilities. Conversely, the decline in the ratio in late 2023 is due to a more rapid increase in current liabilities. The recent upward trend, culminating in a ratio above one, indicates an improved short-term liquidity position.
In conclusion, the quick ratio demonstrates a strengthening liquidity position over the analyzed period, particularly in the most recent quarters. However, the earlier periods indicate a potential vulnerability in meeting short-term obligations, highlighting the importance of monitoring both quick asset levels and current liability management.
AI Ask an analyst for more
Cash Ratio
Netflix Inc., cash ratio calculation (quarterly data)
| Mar 31, 2026 | 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 | 12,259,772) | 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) | 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 | 12,288,450) | 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 | 12,131,578) | 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 | 1.01 | 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. | 1.14 | 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 | 0.28 | 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. | 1.74 | 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. | — | 0.40 | 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. | 0.15 | 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-Q (reporting date: 2026-03-31), 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 Q1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 12,288,450 ÷ 12,131,578 = 1.01
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 a subsequent recovery towards the end of the observed timeframe.
- Initial Stability (Mar 31, 2022 – Dec 31, 2022)
- The cash ratio remained relatively consistent, fluctuating between 0.76 and 0.79. This suggests a stable, though not exceptionally strong, ability to cover immediate liabilities with available cash during this period. There is a slight dip in the ratio at the end of 2022.
- Improvement (Mar 31, 2023 – Jun 30, 2023)
- A notable increase in the cash ratio is observed, rising from 0.94 to 0.99. This improvement indicates a strengthening of the company’s short-term liquidity position, likely due to an increase in total cash assets relative to current liabilities.
- Decline (Sep 30, 2023 – Jun 30, 2024)
- Following the peak, the cash ratio experienced a decline, falling to 0.66 by June 30, 2024. This decrease suggests a weakening in the company’s immediate liquidity, potentially due to a faster growth in current liabilities compared to cash assets. This is the lowest point in the observed period.
- Recovery and Peak (Sep 30, 2024 – Mar 31, 2026)
- The cash ratio began to recover in the latter half of 2024, reaching 0.86 by September 30, 2024, and continuing to improve to 0.89 by December 31, 2024. This trend continued into 2025, peaking at 0.96 in September 2025, before a slight decrease to 0.83 by December 2025. The ratio then experienced a significant increase, reaching 1.01 by March 31, 2026, indicating a strong short-term liquidity position.
Overall, the cash ratio demonstrates a cyclical pattern. While the company generally maintains a positive cash ratio throughout the period, the fluctuations highlight the importance of monitoring both cash asset levels and current liabilities to ensure continued short-term financial health. The recent upward trend culminating in a ratio of 1.01 suggests improved liquidity as of the latest reporting period.
AI Ask an analyst for more