Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

Netflix Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Receivables turnover 36.92 40.92 44.36 43.55
Payables turnover 20.70 23.28 18.45 17.70 21.30
Working capital turnover 12.78 4.93 5.31
Average No. Days
Average receivable collection period 10 9 8 8
Average payables payment period 18 16 20 21 17

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.