Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Netflix Inc., short-term (operating) activity ratios
Based on: 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Netflix Inc. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Netflix Inc. payables turnover ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Netflix Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Receivables Turnover
Netflix Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 29,697,844 | 24,996,056 | 20,156,447 | 15,794,341 | 11,692,713 | |
| Trade receivables | 804,320 | 610,819 | 454,399 | 362,712 | — | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 36.92 | 40.92 | 44.36 | 43.55 | — | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Alphabet Inc. | 6.55 | 5.90 | 6.39 | 6.57 | 6.05 | |
| Charter Communications Inc. | 20.04 | 21.85 | 20.55 | 25.18 | 25.43 | |
| Comcast Corp. | 9.69 | 9.03 | 9.65 | 8.51 | 9.89 | |
| Meta Platforms Inc. | 8.40 | 7.58 | 7.43 | 7.36 | 6.97 | |
| Twitter Inc. | 4.17 | 3.57 | 4.07 | 3.86 | 3.68 | |
| Walt Disney Co. | 5.04 | 5.15 | 4.49 | 6.37 | 6.39 | |
| Receivables Turnover, Sector | ||||||
| Media & Entertainment | 7.75 | 7.32 | 7.37 | 7.91 | 7.95 | |
| Receivables Turnover, Industry | ||||||
| Communication Services | 7.98 | 7.44 | 7.28 | 7.17 | 7.88 | |
Based on: 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).
1 2021 Calculation
Receivables turnover = Revenues ÷ Trade receivables
= 29,697,844 ÷ 804,320 = 36.92
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Netflix Inc. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Payables Turnover
Netflix Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenues | 17,332,683 | 15,276,319 | 12,440,213 | 9,967,538 | 7,659,666 | |
| Accounts payable | 837,483 | 656,183 | 674,347 | 562,985 | 359,555 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 20.70 | 23.28 | 18.45 | 17.70 | 21.30 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Alphabet Inc. | 18.38 | 15.16 | 12.93 | 13.60 | 14.53 | |
| Charter Communications Inc. | 43.48 | 39.23 | 37.18 | 36.75 | 35.87 | |
| Comcast Corp. | 3.09 | 2.91 | 3.18 | 3.50 | 3.67 | |
| Meta Platforms Inc. | 5.55 | 12.54 | 9.37 | 11.41 | 14.35 | |
| Twitter Inc. | 8.85 | 7.03 | 7.06 | 6.65 | 5.04 | |
| Walt Disney Co. | 2.76 | 3.33 | 3.05 | 5.03 | 4.67 | |
| Payables Turnover, Sector | ||||||
| Media & Entertainment | 6.58 | 6.80 | 6.15 | 7.85 | 7.79 | |
| Payables Turnover, Industry | ||||||
| Communication Services | 5.12 | 4.98 | 4.83 | 5.27 | 5.16 | |
Based on: 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).
1 2021 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 17,332,683 ÷ 837,483 = 20.70
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Netflix Inc. payables turnover ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |
Working Capital Turnover
Netflix Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 8,069,825 | 9,761,580 | 6,178,504 | 9,694,135 | 7,669,974 | |
| Less: Current liabilities | 8,488,966 | 7,805,785 | 6,855,696 | 6,487,320 | 5,466,312 | |
| Working capital | (419,141) | 1,955,795 | (677,192) | 3,206,815 | 2,203,662 | |
| Revenues | 29,697,844 | 24,996,056 | 20,156,447 | 15,794,341 | 11,692,713 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | 12.78 | — | 4.93 | 5.31 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Alphabet Inc. | 2.08 | 1.55 | 1.51 | 1.35 | 1.11 | |
| Charter Communications Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | 2.59 | 1.42 | 1.38 | 1.28 | 0.91 | |
| Twitter Inc. | 0.77 | 0.56 | 0.51 | 0.54 | 0.52 | |
| Walt Disney Co. | 26.13 | 7.58 | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Media & Entertainment | 3.92 | 2.74 | 3.19 | 2.98 | 2.59 | |
| Working Capital Turnover, Industry | ||||||
| Communication Services | 8.16 | 4.57 | 6.66 | 6.34 | 5.34 | |
Based on: 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).
1 2021 Calculation
Working capital turnover = Revenues ÷ Working capital
= 29,697,844 ÷ -419,141 = —
2 Click competitor name to see calculations.
Average Receivable Collection Period
Netflix Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 36.92 | 40.92 | 44.36 | 43.55 | — | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 10 | 9 | 8 | 8 | — | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Alphabet Inc. | 56 | 62 | 57 | 56 | 60 | |
| Charter Communications Inc. | 18 | 17 | 18 | 14 | 14 | |
| Comcast Corp. | 38 | 40 | 38 | 43 | 37 | |
| Meta Platforms Inc. | 43 | 48 | 49 | 50 | 52 | |
| Twitter Inc. | 88 | 102 | 90 | 95 | 99 | |
| Walt Disney Co. | 72 | 71 | 81 | 57 | 57 | |
| Average Receivable Collection Period, Sector | ||||||
| Media & Entertainment | 47 | 50 | 49 | 46 | 46 | |
| Average Receivable Collection Period, Industry | ||||||
| Communication Services | 46 | 49 | 50 | 51 | 46 | |
Based on: 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).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 36.92 = 10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Netflix Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Payables Payment Period
Netflix Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 20.70 | 23.28 | 18.45 | 17.70 | 21.30 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 18 | 16 | 20 | 21 | 17 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Alphabet Inc. | 20 | 24 | 28 | 27 | 25 | |
| Charter Communications Inc. | 8 | 9 | 10 | 10 | 10 | |
| Comcast Corp. | 118 | 125 | 115 | 104 | 100 | |
| Meta Platforms Inc. | 66 | 29 | 39 | 32 | 25 | |
| Twitter Inc. | 41 | 52 | 52 | 55 | 72 | |
| Walt Disney Co. | 132 | 110 | 120 | 73 | 78 | |
| Average Payables Payment Period, Sector | ||||||
| Media & Entertainment | 55 | 54 | 59 | 46 | 47 | |
| Average Payables Payment Period, Industry | ||||||
| Communication Services | 71 | 73 | 76 | 69 | 71 | |
Based on: 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).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 20.70 = 18
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |