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)
Netflix Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The payables turnover ratio exhibits fluctuations over the analyzed periods, starting around 23.28 and rising to peak levels such as 37.07, before settling generally in the low to mid-30s range. This indicates variability in how many times the company is able to pay off its suppliers during the periods, with occasional higher turnover suggesting quicker payment cycles.
Working capital turnover shows significant volatility, with some periods experiencing very high ratios, such as 84.84 and 91.06, contrasting with much lower figures near 11 to 15 in other quarters. These spikes suggest that at certain times the company managed to generate much higher revenue relative to its working capital, though the substantial swings may also reflect changes in working capital management or inventory and receivables dynamics.
The average payables payment period generally remains stable, fluctuating between 10 to 16 days. Periods of around 10 to 14 days dominate the timeline, suggesting consistent payment timing to suppliers, with occasional short-term deviations. This steadiness aligns with the moderately stable payables turnover and implies a routine payment schedule without significant delays or early payments altering supplier relationships markedly.
Overall, the data indicates periods of rapid asset utilization and in some cases aggressive working capital management, while payment practices remain relatively consistent. The irregularities in working capital turnover call for further analysis to understand underlying causes, such as changes in inventory levels or receivables collection efficiency.
- Payables Turnover
- Varied between approximately 20.7 and 37.07, showing inconsistent frequency in supplier payments.
- Working Capital Turnover
- Highly variable, with extreme highs over 80 and lows near 11, suggesting fluctuating effectiveness of working capital in generating revenues.
- Average Payables Payment Period
- Relatively stable at approximately 10 to 16 days, indicating consistent payment timing to suppliers.
Turnover Ratios
Average No. Days
Payables Turnover
Netflix Inc., payables turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Cost of revenues | 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) | 5,239,575) | 4,206,589) | 4,018,008) | 3,868,511) | 4,165,160) | 3,867,751) | 3,643,707) | 3,599,701) | |||||||
| Accounts payable | 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) | 837,483) | 643,059) | 622,931) | 532,942) | 656,183) | 541,298) | 446,668) | 545,488) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Payables turnover1 | 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 | 20.70 | 25.28 | 25.56 | 29.17 | 23.28 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | 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 | 18.38 | 22.54 | 20.72 | 18.72 | 15.16 | — | — | — | |||||||
| Comcast Corp. | 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 | 3.09 | 3.16 | 3.10 | 3.03 | 2.91 | — | — | — | |||||||
| Meta Platforms Inc. | 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 | 5.55 | 9.80 | 20.49 | 20.92 | 12.54 | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Payables turnover
= (Cost of revenuesQ2 2025
+ Cost of revenuesQ1 2025
+ Cost of revenuesQ4 2024
+ Cost of revenuesQ3 2024)
÷ Accounts payable
= (5,325,311 + 5,263,147 + 5,767,364 + 5,119,884)
÷ 632,718 = 33.94
2 Click competitor name to see calculations.
The cost of revenues exhibits a generally increasing trend over the presented quarters, starting at approximately 3.60 billion US dollars in March 2020 and escalating to peaks exceeding 5.7 billion US dollars by December 2024. Notably, there are periodic fluctuations within this upward pattern, such as a marked increase in the final quarter of 2021 and again towards the end of 2024. These spikes may indicate seasonality or increased operational activity during certain periods.
Accounts payable shows a more volatile pattern compared to the cost of revenues. Beginning around 545 million US dollars in March 2020, it fluctuates across quarters without a clear linear trend. There are significant rises at several points, for instance in December 2021 and March 2025, where accounts payable approaches or exceeds 899 million US dollars. Conversely, some quarters show dips, like June 2022 and September 2023. This variability may reflect changes in payment cycles, supplier negotiations, or working capital management strategies.
The payables turnover ratio, available from March 2020 onwards, displays considerable variability while hovering mostly within the range of 20.7 to 37.07 times. This ratio spikes notably in certain quarters, such as September 2021 with a turnover of 33.93 and December 2023 with 37.07, indicating faster settlement of payables during these times. Conversely, lower turnover figures, for example around 20.7 in March 2020, suggest slower payment to suppliers. The fluctuations in this ratio imply company responsiveness to supplier credit terms and cash management considerations, with no sustained trend towards either acceleration or deceleration of payables turnover.
Overall, the cost of revenues growth indicates expanding operational scale or rising expenses, while the volatile accounts payable and payables turnover ratios suggest active management of supplier payments with responsiveness to internal or external factors affecting cash flows and credit terms.
- Cost of Revenues
- Gradual increase over time with notable spikes in late 2021 and late 2024; implies growth or seasonal operational intensification.
- Accounts Payable
- Variable pattern with substantial fluctuations; peaks indicate possible shifts in payment practices or supplier terms.
- Payables Turnover Ratio
- Fluctuates without a clear trend; reflects changing pace of payment to suppliers ranging roughly between 20.7 and 37 times annually.
Working Capital Turnover
Netflix Inc., working capital turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Current assets | 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) | 8,069,825) | 9,415,787) | 9,604,276) | 10,107,508) | 9,761,580) | 9,826,480) | 8,564,139) | 6,447,781) | |||||||
| Less: Current liabilities | 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) | 8,488,966) | 8,049,246) | 7,832,888) | 7,961,770) | 7,805,785) | 7,939,795) | 7,626,418) | 7,853,725) | |||||||
| Working capital | 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) | (419,141) | 1,366,541) | 1,771,388) | 2,145,738) | 1,955,795) | 1,886,685) | 937,721) | (1,405,944) | |||||||
| Revenues | 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) | 7,709,318) | 7,483,467) | 7,341,777) | 7,163,282) | 6,644,442) | 6,435,637) | 6,148,286) | 5,767,691) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Working capital turnover1 | 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 | — | 20.95 | 15.57 | 12.30 | 12.78 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | 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 | 2.08 | 1.96 | 1.84 | 1.69 | 1.55 | — | — | — | |||||||
| Charter Communications Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 165.10 | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | 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 | 2.59 | 1.95 | 1.59 | 1.46 | 1.42 | — | — | — | |||||||
| Walt Disney Co. | — | — | — | — | — | — | 54.74 | 45.26 | 420.20 | — | 3,308.88 | 112.96 | 41.96 | 25.38 | 26.13 | 9.70 | 9.36 | 7.30 | 7.58 | 6.70 | — | — | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Working capital turnover
= (RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024)
÷ Working capital
= (11,079,166 + 10,542,801 + 10,246,513 + 9,824,703)
÷ 3,050,771 = 13.67
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends and fluctuations over the reported periods.
- Working Capital
- There is substantial variability in working capital, with values spanning from negative to positive across the quarters. The earliest period starts with a significant negative working capital of approximately -1.4 billion US dollars, shifting to positive territory by the second quarter of 2020 and generally maintaining positive figures with occasional reversals to negative values, such as the fourth quarter of 2021 and the second quarter of 2024. The highest working capital is observed in the fourth quarter of 2025, exceeding 3 billion US dollars. This variability suggests fluctuations in short-term liquidity and operational efficiency over time.
- Revenues
- Revenues exhibit a consistent upward trajectory over the entire period. Starting from approximately 5.77 billion US dollars in the first quarter of 2020, revenues steadily increase each quarter, reaching over 11 billion US dollars by the fourth quarter of 2025. Growth appears relatively stable without clear signs of decline or plateauing, indicating sustained demand and expansion in business activities.
- Working Capital Turnover
- The working capital turnover ratio is available for select periods, showing a highly variable pattern with pronounced peaks and troughs. Ratios range widely, with exceptionally high values recorded in the second and third quarters of 2022 (above 80), suggesting periods of highly efficient use of working capital in generating revenue. However, some quarters show lower turnover values, indicating less efficient use of working capital relative to revenues. The absence of this ratio in earlier periods and in some later ones limits the ability to observe a continuous trend.
Overall, the company appears to manage increasing revenue effectively, while working capital fluctuates significantly, potentially reflecting changes in operational strategies, investment cycles, or external factors affecting liquidity. The variation in working capital turnover metrics suggests intermittent changes in operational efficiency, occasionally achieving very high efficiency in converting working capital into revenue, albeit inconsistently.
Average Payables Payment Period
Netflix Inc., average payables payment period calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Payables turnover | 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 | 20.70 | 25.28 | 25.56 | 29.17 | 23.28 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average payables payment period1 | 11 | 11 | 16 | 11 | 11 | 11 | 14 | 10 | 11 | 11 | 13 | 11 | 10 | 13 | 18 | 14 | 14 | 13 | 16 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | 20 | 21 | 20 | 18 | 16 | 17 | 21 | 16 | 15 | 12 | 15 | 19 | 13 | 11 | 20 | 16 | 18 | 20 | 24 | — | — | — | |||||||
| Comcast Corp. | 119 | 115 | 112 | 115 | 120 | 118 | 123 | 123 | 122 | 121 | 120 | 117 | 113 | 116 | 118 | 115 | 118 | 121 | 125 | — | — | — | |||||||
| Meta Platforms Inc. | 116 | 100 | 93 | 96 | 42 | 52 | 68 | 60 | 43 | 53 | 72 | 61 | 63 | 50 | 66 | 37 | 18 | 17 | 29 | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 33.94 = 11
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibits notable fluctuations over the periods analyzed. Initially, data is absent for the first four quarters before recording a value of 23.28. Subsequently, the ratio increases to a peak of 29.17, followed by a moderate decline and several oscillations between approximately 20.7 and 37.07. Particularly high turnover values are observed around September 2022 (36.53) and December 2023 (37.07), indicating accelerated payment of payables during these periods. The overall trend suggests variability in how quickly payables are settled, without a consistent directional movement over the years.
- Average Payables Payment Period
- The average payables payment period, measured in days, starts at 16 days and shows a downward trend reaching as low as 10 days around September and December 2022. After this low point, the period generally stabilizes between 10 and 14 days, with occasional increases back to 16 days, notably in the March 2025 quarter. These shorter payment periods correspond inversely to the peaks seen in the payables turnover ratio, consistent with quicker payments to suppliers when turnover is higher. The pattern indicates that the company manages its payment cycle actively, with a tendency towards reducing the payment period compared to the earlier quarter observed.
- Relationship Between Metrics
- An inverse relationship is evident between the payables turnover ratio and the average payables payment period. Periods with higher payables turnover correspond to shorter average payment periods, reflecting faster settlement of liabilities. Conversely, when the payment period increases, turnover tends to decrease. This behavior suggests a deliberate management strategy balancing supplier payment timing with operational liquidity considerations.
- Summary
- In summary, the analyzed financial items reveal a dynamic approach to accounts payable management, characterized by variability without a long-term stable pattern. The company appears responsive to changing conditions by adjusting how swiftly it pays its suppliers, evidenced by the fluctuations in both payables turnover and average payment duration. The current trend indicates a preference for maintaining a shorter payment cycle, enhancing turnover efficiency while possibly optimizing working capital usage.