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: 2025-09-30), 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), 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).
The analysis of the quarterly financial ratios reveals several notable trends over the observed periods.
- Payables Turnover
- The payables turnover ratio exhibits considerable fluctuation across the quarters. Initially, there was a decline from 29.17 in March 2021 to a low of 20.7 by December 2021. Following this, a significant increase occurred in the first half of 2022, peaking at 36.53 in June 2022, before decreasing again towards the end of 2024 and the beginning of 2025. Overall, the ratio demonstrates volatility, with values oscillating between approximately 20 and 37, indicating variability in how quickly the company settles its payables over time.
- Working Capital Turnover
- This ratio shows an overall upward trend in early 2022, reaching an exceptionally high peak of 91.06 in June 2022, which is a remarkable jump from previous quarters. Subsequently, the ratio declines significantly and continues to fluctuate with values generally between 11 and 55 in later periods. The data indicates some irregularities or extraordinary events that could have temporarily boosted efficiency in working capital utilization during early 2022, followed by normalization and some degree of instability thereafter.
- Average Payables Payment Period
- The average payables payment period in days reflects relative stability with minor variations. The range spans mostly between 10 to 14 days in most quarters, with a few exceptions such as a rise to 18 days in December 2021 and 16 days in December 2024. These figures suggest that the company maintains consistent payment terms with suppliers but occasionally experiences temporary changes in payment timing, potentially influenced by operational or strategic factors.
In summary, the payables turnover and working capital turnover ratios show significant fluctuations and some exceptional values, particularly in mid-2022. The average payables payment period remains relatively stable, indicating consistent payment behavior despite variability in asset and liability management efficiency. These trends could imply periods of both increased efficiency and possible challenges in managing payables and working capital.
Turnover Ratios
Average No. Days
Payables Turnover
Netflix Inc., payables turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cost of revenues | 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) | 5,239,575) | 4,206,589) | 4,018,008) | 3,868,511) | ||||||
| Accounts payable | 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) | 837,483) | 643,059) | 622,931) | 532,942) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | 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 | 20.70 | 25.28 | 25.56 | 29.17 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 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 | 18.38 | 22.54 | 20.72 | 18.72 | ||||||
| Comcast Corp. | 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 | 3.09 | 3.16 | 3.10 | 3.03 | ||||||
| Meta Platforms Inc. | 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 | 5.55 | 9.80 | 20.49 | 20.92 | ||||||
| Trade Desk Inc. | — | 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 | 0.13 | 0.16 | 0.16 | 0.17 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Payables turnover
= (Cost of revenuesQ3 2025
+ Cost of revenuesQ2 2025
+ Cost of revenuesQ1 2025
+ Cost of revenuesQ4 2024)
÷ Accounts payable
= (6,164,250 + 5,325,311 + 5,263,147 + 5,767,364)
÷ 793,233 = 28.39
2 Click competitor name to see calculations.
The analysis of the financial data over the multiple quarters reveals several patterns in the cost of revenues, accounts payable, and payables turnover for the company.
- Cost of Revenues
- The cost of revenues generally exhibits an upward trend over the observed period. Starting from approximately 3.87 billion US dollars in the first quarter of 2021, it increases with some fluctuations to reach over 6.16 billion US dollars by the third quarter of 2025. Notable spikes occur in the fourth quarter of 2021 and the fourth quarter of 2024, indicating periods of significantly higher costs, which may be associated with seasonal factors or increased operational activity. Despite some quarters showing slight declines or stability, the long-term pattern is growth in cost of revenues.
- Accounts Payable
- Accounts payable values show variability but remain within a range roughly between 500 million and 900 million US dollars throughout the quarters. The data reflects occasional peaks, such as near 900 million in the fourth quarter of 2024, indicating potentially higher outstanding obligations at those times. There is no clear linear trend, as the figures fluctuate up and down possibly in response to changes in procurement activity, payment policies, or vendor terms.
- Payables Turnover Ratio
- The payables turnover ratio, reflecting the frequency of accounts payable being paid off during the period, shows variation between approximately 20.7 and 37.07. Higher ratios occur sporadically, suggesting periods when payables were settled more rapidly. For example, the turnover spikes to above 36 in mid-2022 and third quarter of 2023, implying stronger payment activity. Lower values, such as around 20.7 in the fourth quarter of 2021, indicate slower payment cycles. Overall, the ratio does not follow a consistent trend but oscillates, reflective of changing working capital management or supplier payment strategies.
In summary, the company exhibits increasing costs of revenues over time, with variable accounts payable and fluctuating payables turnover ratios. These patterns suggest growth in operational scale with adjustments in payment terms and supplier management across the analyzed periods.
Working Capital Turnover
Netflix Inc., working capital turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Current assets | 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) | 8,069,825) | 9,415,787) | 9,604,276) | 10,107,508) | ||||||
| Less: Current liabilities | 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) | 8,488,966) | 8,049,246) | 7,832,888) | 7,961,770) | ||||||
| Working capital | 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) | (419,141) | 1,366,541) | 1,771,388) | 2,145,738) | ||||||
| Revenues | 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) | 7,709,318) | 7,483,467) | 7,341,777) | 7,163,282) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | 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 | — | 20.95 | 15.57 | 12.30 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 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 | 2.08 | 1.96 | 1.84 | 1.69 | ||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 165.10 | — | — | ||||||
| Meta Platforms Inc. | 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 | 2.59 | 1.95 | 1.59 | 1.46 | ||||||
| Trade Desk Inc. | — | 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 | 0.93 | 1.03 | 1.02 | 0.99 | ||||||
| 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 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Working capital turnover
= (RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024)
÷ Working capital
= (11,510,307 + 11,079,166 + 10,542,801 + 10,246,513)
÷ 3,231,076 = 13.43
2 Click competitor name to see calculations.
The financial data over the series of quarters reveals several notable trends and fluctuations across working capital, revenues, and working capital turnover.
- Working Capital
- Working capital exhibits considerable volatility throughout the observed periods. Initially, it decreases from approximately 2,145 million USD at the end of Q1 2021 to a negative value of about -419 million USD by Q4 2021. This sharp decline indicates potential liquidity or short-term financial management challenges during that period. Subsequently, working capital recovers and demonstrates a fluctuating but largely upward trajectory starting from Q1 2022, reaching peaks exceeding 3,200 million USD by Q3 2025. Despite some intermediate periods of decline, such as in mid-2024, the overall trend from early 2022 onward suggests an improved liquidity position or better short-term asset and liability management.
- Revenues
- Revenues show a consistent and steady increase across all quarters. Beginning at approximately 7,163 million USD in Q1 2021, revenue grows gradually each quarter, surpassing 11,510 million USD by Q3 2025. This persistent upward trend indicates continuous business expansion or growth in sales, maintaining strong top-line momentum without noticeable decline or stagnation over the entire period.
- Working Capital Turnover
- The working capital turnover ratio displays significant fluctuation and some irregularities during the timeline. Initially, values increase from 12.3 to 20.95 through Q3 2021 but data for Q4 2021 is missing, which limits clarity for that quarter. Afterward, an unusually high turnover ratio is observed in Q1 and Q2 2022, reaching 84.84 and 91.06 respectively, indicating highly efficient use of working capital relative to sales during those quarters. However, the ratio declines sharply afterward, oscillating between lower values of approximately 11 and 31 through 2023 and into 2024, with some gaps in data again impacting full continuity. From late 2024 to mid-2025, the working capital turnover stabilizes around levels ranging roughly from 13 to 20, suggesting more balanced working capital management compared to previous volatile quarters.
Overall, the data points to a company experiencing revenue growth with fluctuating but improving liquidity and working capital management. The volatility in working capital and its turnover ratio, particularly around late 2021 and early 2022, may warrant further investigation to understand underlying causes. The sustained increase in revenues reflects ongoing business strength, while the later stabilization in working capital turnover indicates a potentially more controlled and efficient operational environment towards the end of the observed period.
Average Payables Payment Period
Netflix Inc., average payables payment period calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||
| Payables turnover | 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 | 20.70 | 25.28 | 25.56 | 29.17 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average payables payment period1 | 13 | 11 | 11 | 16 | 11 | 11 | 11 | 14 | 10 | 11 | 11 | 13 | 11 | 10 | 13 | 18 | 14 | 14 | 13 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 24 | 20 | 21 | 20 | 18 | 16 | 17 | 21 | 16 | 15 | 12 | 15 | 19 | 13 | 11 | 20 | 16 | 18 | 20 | ||||||
| Comcast Corp. | 123 | 119 | 115 | 112 | 115 | 120 | 118 | 123 | 123 | 122 | 121 | 120 | 117 | 113 | 116 | 118 | 115 | 118 | 121 | ||||||
| Meta Platforms Inc. | 83 | 116 | 100 | 93 | 96 | 42 | 52 | 68 | 60 | 43 | 53 | 72 | 61 | 63 | 50 | 66 | 37 | 18 | 17 | ||||||
| Trade Desk Inc. | — | 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 | 2,728 | 2,308 | 2,256 | 2,205 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 28.39 = 13
2 Click competitor name to see calculations.
The analysis of the payables turnover ratio and the average payables payment period over multiple quarters reveals notable fluctuations in the company's payment dynamics and supplier management efficiency.
- Payables Turnover Ratio Trends
- The payables turnover ratio exhibits significant variability throughout the observed periods. Initially, the ratio starts relatively high, indicating a brisk rate of payable settlements, then declines towards the end of 2021, suggesting slower payments or increased payables. In 2022, the ratio recovers to a peak mid-year before progressively declining again approaching 2025. These fluctuations imply changes in payment policies, possibly reflecting shifting negotiation power with suppliers or cash flow management adjustments.
- Average Payables Payment Period Trends
- The average payment period generally ranges between 10 to 18 days, with occasional peaks coinciding with lower turnover ratios. Early in the timeline, payment periods are shorter, indicating a prompt settlement of obligations. However, certain quarters (e.g., end of 2021 and early 2025) show elongation in the days payable outstanding, suggesting either strategic delay in payments or transient cash flow constraints. Despite these variations, the company maintains payment periods mostly within a two-week window.
- Relationship Between Metrics
- There is an inverse relationship observed between the payables turnover ratio and the average payment period, as expected from their calculation linkage. Periods with higher turnover ratios correspond with shorter payment periods, denoting faster cycling through payables. Conversely, dips in turnover align with extended payment durations. This pattern consistently holds, underscoring a stable operational interplay between payable management and settlement timelines.
- Overall Insights
- The data suggests that the company occasionally adjusts its payables payment timing, possibly to optimize working capital or respond to external financial conditions. While generally maintaining prompt payment practices, periodic elongations in payment terms may indicate tactical cash preservation efforts. The variability in payables turnover points to adaptive payables management rather than a static approach.