Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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)
Turnover Ratios
Average No. Days
Netflix Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 short-term operating activity ratios exhibit a divergence between the stability of payment obligations and the volatility of working capital efficiency. While the management of payables remains highly consistent, the utilization of working capital to generate revenue shows significant fluctuations over the observed period.
- Payables Turnover
- The payables turnover ratio demonstrates a cyclical pattern, generally fluctuating between 23.38 and 37.07. Peak efficiency was observed in September 2023 at 37.07, while the lowest point occurred in December 2024 at 23.38. A recurring tendency for the ratio to decline during the December quarters suggests a seasonal shift in the timing of supplier payments or a temporary increase in outstanding payables at year-end.
- Working Capital Turnover
- This ratio displays extreme volatility, indicating substantial shifts in the relationship between net working capital and revenue. High efficiency was noted in the first half of 2022, with peaks of 84.84 and 91.06. Subsequently, a marked decline occurred, with values dropping to a range between 9.49 and 14.73 during various periods in 2023 and early 2026. Frequent spikes and dips suggest a dynamic approach to liquidity management or significant changes in the balance of current assets and liabilities.
- Average Payables Payment Period
- The payment period remains remarkably stable, ranging from a minimum of 10 days to a maximum of 16 days. For the majority of the period, the cycle fluctuates minimally between 11 and 14 days. This consistency indicates a disciplined and predictable approach to settling short-term obligations, irrespective of the wider fluctuations seen in working capital turnover.
Overall, the operational data suggests a company that maintains a very tight and controlled payment cycle while experiencing significant variability in the efficiency of its working capital deployment.
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Payables Turnover
Netflix Inc., payables turnover calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | 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) | |||||||||||||||||||||||||
| Cost of revenues | 6,079,016) | 6,036,965) | 5,888,238) | 6,522,621) | 6,164,250) | 5,325,311) | 5,263,147) | 5,767,364) | 5,119,884) | 5,174,143) | 4,977,073) | 5,307,485) | 4,930,788) | 4,673,470) | 4,803,625) | 5,404,160) | 4,788,665) | 4,690,755) | 4,284,705) | ||||||
| Accounts payable | 860,098) | 814,551) | 894,681) | 900,612) | 793,233) | 632,718) | 614,489) | 899,909) | 641,953) | 598,557) | 607,348) | 747,412) | 534,429) | 615,374) | 591,987) | 671,513) | 560,156) | 504,278) | 617,202) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | 28.52 | 30.22 | 26.71 | 25.84 | 28.39 | 33.94 | 34.70 | 23.38 | 32.06 | 34.06 | 32.75 | 26.38 | 37.07 | 31.96 | 33.26 | 28.54 | 33.93 | 36.53 | 28.76 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 8.39 | 8.61 | 9.94 | 13.32 | 14.92 | 18.27 | 17.53 | 18.32 | 20.32 | 22.98 | 22.01 | 17.79 | 22.59 | 24.29 | 30.41 | 24.61 | 19.65 | 27.29 | 33.89 | ||||||
| Comcast Corp. | 3.11 | 3.22 | 3.12 | 3.16 | 2.97 | 3.06 | 3.17 | 3.27 | 3.16 | 3.04 | 3.10 | 2.96 | 2.97 | 3.00 | 3.01 | 3.05 | 3.13 | 3.23 | 3.16 | ||||||
| Meta Platforms Inc. | 2.40 | 2.62 | 2.91 | 4.07 | 4.37 | 3.14 | 3.65 | 3.92 | 3.79 | 8.78 | 7.00 | 5.35 | 6.08 | 8.44 | 6.90 | 5.06 | 6.01 | 5.82 | 7.25 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 Q3 2026 Calculation
Payables turnover
= (Cost of revenuesQ3 2026
+ Cost of revenuesQ2 2026
+ Cost of revenuesQ1 2026
+ Cost of revenuesQ4 2025)
÷ Accounts payable
= (6,079,016 + 6,036,965 + 5,888,238 + 6,522,621)
÷ 860,098 = 28.52
2 Click competitor name to see calculations.
An analysis of the operating activity ratios from March 2022 through September 2026 reveals a general upward trajectory in costs and liabilities, paired with a cyclical pattern in payables turnover. The cost of revenues exhibited consistent growth over the period, rising from 4.28 billion US dollars in the first quarter of 2022 to peak at 6.52 billion US dollars by December 2025, before stabilizing around 6.08 billion US dollars by the end of the observed period.
- Accounts Payable Trends
- Accounts payable experienced significant fluctuations, though the overall trend moved upward. The balance rose from 617.2 million US dollars in March 2022 to a high of 900.6 million US dollars in December 2025. Notable peaks in payables consistently occurred toward the end of the calendar year, specifically in December of 2022, 2023, 2024, and 2025, suggesting a recurring year-end accumulation of short-term obligations.
- Payables Turnover Volatility
- The payables turnover ratio demonstrated a cyclical pattern of contraction and expansion. The ratio reached its highest points in June 2022 (36.53) and September 2023 (37.07), indicating periods of rapid payment of obligations relative to the cost of revenues. Conversely, the ratio consistently dipped during the fourth quarter of each year, reaching its lowest point of 23.38 in December 2024. This recurring seasonal decline indicates a slower turnover of payables at year-end.
- Correlation Between Costs and Turnover
- While the cost of revenues grew steadily, the payables turnover ratio did not follow a linear path, instead fluctuating between a range of approximately 23 and 37. The divergence seen in December 2024, where the turnover ratio hit a minimum despite rising costs, suggests an intentional or operational extension of payment terms during that period. By the third quarter of 2026, the ratio stabilized at 28.52, aligning closely with the levels observed at the beginning of the analysis period in 2022.
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Working Capital Turnover
Netflix Inc., working capital turnover calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | 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 | 13,222,337) | 13,853,303) | 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) | ||||||
| Less: Current liabilities | 12,300,860) | 12,134,898) | 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) | ||||||
| Working capital | 921,477) | 1,718,405) | 4,939,404) | 2,039,261) | 3,231,076) | 3,050,771) | 1,979,113) | 2,344,979) | 1,421,973) | (524,446) | 632,096) | 1,057,478) | 2,440,756) | 2,830,531) | 2,166,553) | 1,335,499) | 1,050,979) | 340,756) | 358,359) | ||||||
| Revenues | 12,874,176) | 12,559,938) | 12,249,757) | 12,050,762) | 11,510,307) | 11,079,166) | 10,542,801) | 10,246,513) | 9,824,703) | 9,559,310) | 9,370,440) | 8,832,825) | 8,541,668) | 8,187,301) | 8,161,503) | 7,852,053) | 7,925,589) | 7,970,141) | 7,867,767) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | 53.97 | 28.15 | 9.49 | 22.16 | 13.43 | 13.67 | 20.30 | 16.63 | 26.43 | — | 55.26 | 31.89 | 13.41 | 11.35 | 14.73 | 23.67 | 29.95 | 91.06 | 84.84 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 1.96 | 2.05 | 4.12 | 3.90 | 5.18 | 4.71 | 5.11 | 4.69 | 4.43 | 3.90 | 3.60 | 3.43 | 3.30 | 3.18 | 3.06 | 2.96 | 2.82 | 2.51 | 2.33 | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 4.25 | 3.30 | 3.41 | 3.00 | 5.24 | 4.92 | 3.02 | 2.48 | 2.71 | 3.03 | 3.02 | 2.53 | 2.65 | 3.04 | 4.33 | 3.59 | 3.32 | 3.54 | 3.13 | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | 54.74 | 45.26 | 420.20 | — | 3,308.88 | 112.96 | 41.96 | 25.38 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 Q3 2026 Calculation
Working capital turnover
= (RevenuesQ3 2026
+ RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025)
÷ Working capital
= (12,874,176 + 12,559,938 + 12,249,757 + 12,050,762)
÷ 921,477 = 53.97
2 Click competitor name to see calculations.
An analysis of operating activity ratios reveals a significant divergence between consistent revenue expansion and highly volatile working capital management. While the top line demonstrates a steady upward trajectory, the efficiency with which working capital is utilized to generate that revenue fluctuates considerably over the analyzed period.
- Revenue Growth Trends
- Revenues exhibit a consistent and uninterrupted increase, rising from 7.87 billion US$ in March 2022 to 12.87 billion US$ by September 2026. This steady growth indicates a stable expansion of the company's core earning capacity over the five-year period.
- Working Capital Volatility
- Working capital displays extreme variability and lacks a linear trend. Significant fluctuations are observed, including a peak of 4.94 billion US$ in March 2026 and a notable dip into negative territory, reaching -524.45 million US$ in June 2024. These swings suggest periodic shifts in the balance between current assets and current liabilities.
- Working Capital Turnover Dynamics
- The turnover ratio shows a general downward trend from its initial highs in early 2022, where it exceeded 91.00. A sharp decline is noted through 2023, with the ratio frequently falling between 11.00 and 14.00. The ratio became non-calculable in June 2024 due to the negative working capital position. While a recovery to 53.97 is observed in September 2026, the overall pattern indicates that the efficiency of working capital utilization has become less predictable compared to the start of the period.
- Correlation Analysis
- An inverse relationship is evident between working capital levels and the turnover ratio. Periods of increased working capital, such as the spike in March 2026, correlate with significant drops in the turnover ratio (reaching a period low of 9.49). Conversely, the higher turnover ratios observed in 2022 were associated with significantly lower working capital requirements relative to total revenues.
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Average Payables Payment Period
Netflix Inc., average payables payment period calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | 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 | |||||||||||||||||||||||||
| Payables turnover | 28.52 | 30.22 | 26.71 | 25.84 | 28.39 | 33.94 | 34.70 | 23.38 | 32.06 | 34.06 | 32.75 | 26.38 | 37.07 | 31.96 | 33.26 | 28.54 | 33.93 | 36.53 | 28.76 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average payables payment period1 | 13 | 12 | 14 | 14 | 13 | 11 | 11 | 16 | 11 | 11 | 11 | 14 | 10 | 11 | 11 | 13 | 11 | 10 | 13 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 43 | 42 | 37 | 27 | 24 | 20 | 21 | 20 | 18 | 16 | 17 | 21 | 16 | 15 | 12 | 15 | 19 | 13 | 11 | ||||||
| Comcast Corp. | 117 | 113 | 117 | 115 | 123 | 119 | 115 | 112 | 115 | 120 | 118 | 123 | 123 | 122 | 121 | 120 | 117 | 113 | 116 | ||||||
| Meta Platforms Inc. | 152 | 139 | 125 | 90 | 83 | 116 | 100 | 93 | 96 | 42 | 52 | 68 | 60 | 43 | 53 | 72 | 61 | 63 | 50 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 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 Q3 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 28.52 = 13
2 Click competitor name to see calculations.
The analysis of short-term operating activity ratios reveals a high degree of consistency in the management of accounts payable, characterized by a rapid turnover cycle and a consistently short payment window.
- Payables Turnover Trends
- The payables turnover ratio exhibits moderate volatility, fluctuating between a low of 23.38 in December 2024 and a peak of 37.07 in September 2023. Throughout the observed period, the ratio generally oscillates between 26 and 34, indicating a steady and frequent settlement of obligations relative to credit purchases.
- Average Payables Payment Period Analysis
- The average time taken to settle payables remains remarkably short, consistently ranging between 10 and 16 days. This suggests a strategic preference for prompt payment or the adherence to strict vendor credit terms. A recurring seasonal pattern is observable, with the payment period typically expanding during the final quarter of the calendar year, reaching a maximum of 16 days in December 2024.
- Operational Liquidity and Credit Management
- The stability of the payment period, despite the fluctuations in the turnover ratio, points to a disciplined approach to working capital management. The minimal variance in the days required to pay suppliers indicates that the organization does not rely on extending payables to finance its operations, which suggests a strong liquid position and the maintenance of favorable supplier relationships.
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