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: 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 analysis of operating activity ratios reveals a profile of consistent supplier management juxtaposed with significant volatility in working capital efficiency over the period from March 2022 to June 2026.
- Payables Turnover
- The payables turnover ratio exhibits moderate fluctuation, generally oscillating between 23 and 37. A peak of 37.07 was recorded in September 2023, followed by a decline to a period low of 23.38 by December 2024. A subsequent recovery is observed toward the end of the observed period, with the ratio increasing to 30.22 by June 2026, suggesting a relatively stable management of accounts payable relative to costs.
- Working Capital Turnover
- A pronounced downward trend and high volatility are observed in the working capital turnover ratio. Initial values in early 2022 were exceptionally high, peaking at 91.06 in June 2022, before experiencing a sharp contraction to 11.35 by June 2023. Although a temporary spike to 55.26 occurred in March 2024, the ratio generally remained at lower levels throughout 2025 and early 2026, indicating a significant shift in the efficiency of working capital utilization to generate revenue.
- Average Payables Payment Period
- The average payables payment period remains remarkably consistent, staying within a narrow range of 10 to 16 days. This stability indicates a disciplined and uniform approach to settling obligations with suppliers. The slight extension to 16 days in December 2024 corresponds with the observed dip in payables turnover during the same period, though the payment cycle quickly reverted to a range of 12 to 14 days in subsequent quarters.
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Turnover Ratios
Average No. Days
Payables Turnover
Netflix Inc., payables turnover calculation (quarterly data)
| 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 | 6,036,965) | 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 | 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 | 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. | 8.61 | 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. | 3.22 | 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. | 2.62 | 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 | ||||||
| Trade Desk Inc. | — | 0.25 | 0.21 | 0.21 | 0.20 | 0.21 | 0.18 | 0.18 | 0.17 | 0.18 | 0.16 | 0.18 | 0.17 | 0.18 | 0.15 | 0.16 | 0.16 | 0.17 | ||||||
Based on: 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 Q2 2026 Calculation
Payables turnover
= (Cost of revenuesQ2 2026
+ Cost of revenuesQ1 2026
+ Cost of revenuesQ4 2025
+ Cost of revenuesQ3 2025)
÷ Accounts payable
= (6,036,965 + 5,888,238 + 6,522,621 + 6,164,250)
÷ 814,551 = 30.22
2 Click competitor name to see calculations.
The analysis of operating activity reveals a general expansion in cost of revenues accompanied by a cyclical pattern in payables management. While overall expenditures have increased over the observed period, the efficiency and timing of payments to suppliers fluctuate with a distinct seasonal regularity.
- Cost of Revenues Trend
- A sustained upward trajectory in the cost of revenues is observed, rising from $4,284,705 thousand in March 2022 to $6,036,965 thousand by June 2026. This growth indicates an expansion in the operational scale or an increase in the cost of content production and distribution over the multi-year period.
- Accounts Payable Dynamics
- Accounts payable demonstrate significant volatility, characterized by recurring peaks. The balance reached its highest levels in December 2024 ($899,909 thousand) and December 2025 ($900,612 thousand). These spikes suggest a periodic accumulation of short-term obligations toward the end of each calendar year.
- Payables Turnover Cyclicality
- The payables turnover ratio exhibits a clear seasonal contraction every fourth quarter. Significant dips are recorded in December 2022 (28.54), December 2023 (26.38), December 2024 (23.38), and December 2025 (25.84). These lows indicate a slower rate of payment to suppliers or a strategic extension of payment terms at year-end.
- Turnover Recovery and Stability
- Following the annual December declines, the turnover ratio typically recovers in the first and second quarters of the following year. For instance, the ratio rose from 25.84 in December 2025 to 30.22 by June 2026, suggesting a return to more rapid payment cycles in the first half of the year.
- Efficiency Observations
- The highest turnover efficiency was observed in September 2023, with a ratio of 37.07, coinciding with a relatively low accounts payable balance of $534,429 thousand. The overall trend suggests that while the volume of business has grown, the company maintains a consistent pattern of managing its short-term liabilities in a cyclical manner.
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Working Capital Turnover
Netflix Inc., working capital turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Current assets | 13,853,303) | 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 | 12,134,898) | 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 | 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 | 12,559,938) | 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 | 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. | 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. | 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 | ||||||
| Trade Desk Inc. | — | 1.51 | 1.45 | 1.31 | 1.27 | 1.18 | 0.99 | 1.04 | 1.09 | 1.13 | 1.08 | 0.98 | 0.97 | 1.00 | 0.87 | 0.91 | 0.91 | 0.92 | ||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | 54.74 | 45.26 | 420.20 | — | 3,308.88 | 112.96 | 41.96 | 25.38 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Working capital turnover
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Working capital
= (12,559,938 + 12,249,757 + 12,050,762 + 11,510,307)
÷ 1,718,405 = 28.15
2 Click competitor name to see calculations.
A consistent upward trajectory in revenues is observed from March 31, 2022, through June 30, 2026, with quarterly figures rising from approximately 7.87 billion USD to 12.56 billion USD. In contrast, working capital exhibits significant volatility throughout the period, which directly results in wide fluctuations in the working capital turnover ratio.
- Revenue Growth Patterns
- Revenue demonstrates steady and uninterrupted growth over the analyzed timeframe. The growth is characterized by a gradual climb, surpassing the 10 billion USD quarterly threshold by late 2024 and maintaining a positive slope through the end of the period.
- Working Capital Volatility
- Working capital shows an erratic pattern, characterized by periods of rapid expansion and contraction. A notable peak occurred in March 2026, reaching approximately 4.94 billion USD. Conversely, a significant deficit was recorded on June 30, 2024, where working capital dropped to negative 524.45 million USD. This instability suggests fluctuating short-term asset and liability management strategies.
- Working Capital Turnover Dynamics
- The turnover ratio experienced a sharp decline from its peak of 91.06 in June 2022 to a low of 11.35 by June 2023. This contraction is attributed to the substantial increase in working capital relative to revenue growth during that window. A temporary spike to 55.26 occurred in March 2024, coinciding with a reduction in working capital. The ratio remained volatile in the final two years, reaching its lowest point of 9.49 in March 2026, indicating that the growth in working capital significantly outpaced revenue growth during that specific quarter.
- Operational Efficiency Correlation
- The inverse relationship between working capital levels and the turnover ratio is evident. Periods of high efficiency (higher turnover ratios) are linked to leaner working capital positions, whereas the trend toward the end of the period suggests a shift toward a more capital-intensive short-term operating structure, reducing the turnover velocity of working capital.
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Average Payables Payment Period
Netflix Inc., average payables payment period calculation (quarterly data)
| 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 | 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 | 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. | 42 | 37 | 27 | 24 | 20 | 21 | 20 | 18 | 16 | 17 | 21 | 16 | 15 | 12 | 15 | 19 | 13 | 11 | ||||||
| Comcast Corp. | 113 | 117 | 115 | 123 | 119 | 115 | 112 | 115 | 120 | 118 | 123 | 123 | 122 | 121 | 120 | 117 | 113 | 116 | ||||||
| Meta Platforms Inc. | 139 | 125 | 90 | 83 | 116 | 100 | 93 | 96 | 42 | 52 | 68 | 60 | 43 | 53 | 72 | 61 | 63 | 50 | ||||||
| Trade Desk Inc. | — | 1,460 | 1,773 | 1,705 | 1,802 | 1,713 | 2,035 | 2,011 | 2,089 | 1,989 | 2,314 | 2,085 | 2,151 | 2,026 | 2,430 | 2,246 | 2,230 | 2,184 | ||||||
Based on: 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 Q2 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 30.22 = 12
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a consistent and efficient management of accounts payable, characterized by a rapid turnover of obligations. The data indicates a recurring seasonal trend where payment durations extend slightly during the final quarter of the calendar year.
- Payables Turnover Dynamics
- The turnover ratio exhibits periodic volatility, ranging from a minimum of 23.38 in December 2024 to a peak of 37.07 in September 2023. A discernible cyclical pattern is present, with turnover rates consistently decelerating in December across consecutive years, which suggests a recurring shift in procurement or payment scheduling at the close of the calendar year.
- Average Payables Payment Period Analysis
- The payment period remains remarkably short, typically oscillating between 10 and 11 days for the majority of the quarters analyzed. However, a consistent expansion of this period is observed during the fourth quarter of each year, reaching a maximum of 16 days in December 2024. This trend reflects a temporary increase in the duration required to settle liabilities with suppliers before returning to baseline levels in the following quarter.
- Correlation Between Turnover and Payment Duration
- An inverse relationship is strictly maintained between the payables turnover ratio and the average payment period. The peaks in the payment period correlate precisely with the troughs in turnover, confirming that the observable fluctuations are driven by changes in the velocity of payment cycles rather than structural shifts in overall credit terms.
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