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: 2026-03-31), 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 operating activity ratios exhibit varied trends over the observed period. Payables turnover generally fluctuated between approximately 26 and 37, while working capital turnover demonstrated more significant volatility. The average payables payment period remained relatively stable for most of the period, with a noticeable increase towards the end of the observation window.
- Payables Turnover
- Payables turnover began at 28.76 and increased to 36.53 before declining to 28.54 by the end of 2022. The first half of 2023 showed a slight recovery, peaking at 37.07 in the third quarter, followed by a decrease to 25.84 by the end of 2023. This pattern continued into 2024, with fluctuations around the 30-34 range, before declining to 26.71 by March 2026. This suggests potential shifts in the company’s supplier credit terms or purchasing patterns.
- Working Capital Turnover
- Working capital turnover experienced substantial fluctuations. It started at 84.84, peaked at 91.06, then dramatically decreased to 23.67 by the end of 2022. The decline continued into the first half of 2023, reaching a low of 11.35. A partial recovery occurred in late 2023 and early 2024, reaching 55.26, but then decreased again to 16.63 by the end of 2024. Further fluctuations were observed, with a low of 9.49 in March 2026. These changes indicate significant variations in the relationship between current assets and current liabilities, potentially reflecting changes in working capital management strategies or operational efficiency.
- Average Payables Payment Period
- The average payables payment period remained consistently around 10 to 13 days for most of the period, indicating stable payment practices. However, a noticeable increase to 16 days was observed in December 2024, and this trend continued with periods of 14 days in both March and December 2025, and again in March 2026. This lengthening of the payment period could suggest a deliberate strategy to manage cash flow or potentially indicate some difficulty in meeting payment obligations.
Overall, the observed trends suggest a dynamic operating environment. The fluctuations in working capital turnover warrant further investigation to understand the underlying drivers. The recent increase in the average payables payment period also merits attention, as it could signal a change in financial strategy or potential liquidity concerns.
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Turnover Ratios
Average No. Days
Payables Turnover
Netflix Inc., payables turnover calculation (quarterly data)
| 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 | 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 | 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 | 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. | 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. | 3.12 | 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. | 2.91 | 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: 2026-03-31), 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 Q1 2026 Calculation
Payables turnover
= (Cost of revenuesQ1 2026
+ Cost of revenuesQ4 2025
+ Cost of revenuesQ3 2025
+ Cost of revenuesQ2 2025)
÷ Accounts payable
= (5,888,238 + 6,522,621 + 6,164,250 + 5,325,311)
÷ 894,681 = 26.71
2 Click competitor name to see calculations.
The accounts payable turnover ratio exhibits fluctuations over the observed period, spanning from March 31, 2022, to March 31, 2026. Generally, the ratio demonstrates a pattern of variability without a consistently strong upward or downward trajectory. Initial values indicate a relatively high turnover, followed by periods of decline and subsequent recovery.
- Overall Trend
- The ratio began at 28.76 in March 2022, increased to a peak of 37.07 in September 2022, then decreased to 23.38 in December 2024. A slight recovery is observed in the most recent period, reaching 26.71 in March 2026. This suggests a cyclical pattern, potentially influenced by changes in purchasing practices, supplier credit terms, or the timing of payments.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to June 2022, the ratio increased significantly, from 28.76 to 36.53. This suggests a faster rate of paying suppliers during this period. A subsequent decrease to 28.54 by December 2022 indicates a slowing of this pace. The first half of 2023 shows relative stability, fluctuating between 31.96 and 33.26.
- Recent Performance (2024-2026)
- A notable decline in the ratio is observed from September 2023 (28.39) to December 2024 (23.38), representing the lowest point in the observed period. This could indicate a lengthening of the time taken to settle obligations with suppliers. The ratio shows a modest increase in the final two periods, reaching 26.71 in March 2026, but remains below the levels seen in the earlier part of the observation window.
- Relationship to Cost of Revenues
- Cost of revenues generally increased over the period. While accounts payable also increased, the fluctuations in the payables turnover ratio suggest that the timing and volume of purchases and payments did not consistently align with the growth in cost of revenues. Periods of higher cost of revenues did not always correspond to higher payables turnover, and vice versa.
In conclusion, the payables turnover ratio demonstrates a dynamic pattern, influenced by various factors. The recent decline warrants further investigation to determine the underlying causes and potential implications for liquidity and supplier relationships.
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Working Capital Turnover
Netflix Inc., working capital turnover calculation (quarterly data)
| 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 | 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 | 12,131,578) | 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 | 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 | 12,249,757) | 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 | 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. | 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. | 3.41 | 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: 2026-03-31), 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 Q1 2026 Calculation
Working capital turnover
= (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
÷ Working capital
= (12,249,757 + 12,050,762 + 11,510,307 + 11,079,166)
÷ 4,939,404 = 9.49
2 Click competitor name to see calculations.
The working capital turnover ratio exhibits considerable fluctuation throughout the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicate a relatively efficient utilization of working capital, followed by a period of declining efficiency and subsequent volatility.
- Initial Period (Mar 31, 2022 – Jun 30, 2022)
- The working capital turnover ratio began at 84.84 and increased to 91.06. This suggests an improving ability to generate revenue from each dollar of working capital during this timeframe. The company was effectively managing its short-term assets and liabilities to support sales.
- Decline and Volatility (Sep 30, 2022 – Dec 31, 2022)
- A significant decline in the ratio is observed from September 30, 2022 (29.95) through December 31, 2022 (23.67). This decrease indicates a less efficient use of working capital, potentially due to increases in working capital components without a corresponding rise in revenue, or a decrease in revenue. The ratio then experiences a substantial increase to 31.89 by December 31, 2022, indicating a recovery in efficiency, though remaining below the initial levels.
- Fluctuating Efficiency (Mar 31, 2023 – Dec 31, 2024)
- From March 31, 2023, to December 31, 2024, the ratio continues to fluctuate. It declines to a low of 11.35 by June 30, 2023, then rises to 55.26 by March 31, 2024, before decreasing again to 16.63 by December 31, 2024. This period demonstrates inconsistent performance in utilizing working capital to generate sales. The absence of a value for June 30, 2024, prevents a complete assessment of the trend during that quarter.
- Recent Trend (Mar 31, 2025 – Dec 31, 2025)
- The ratio shows a moderate increase to 20.30 by March 31, 2025, followed by a slight decrease to 13.67 by June 30, 2025. A subsequent increase to 22.16 by December 31, 2025, suggests a potential stabilization, though still at a level considerably lower than the initial values observed in 2022. The final value of 9.49 for March 31, 2026, indicates a further decline in working capital turnover.
Overall, the working capital turnover ratio demonstrates a pattern of initial efficiency, followed by a period of significant volatility and a general downward trend. The fluctuations suggest potential changes in the company’s operational strategies, inventory management, or credit policies. The recent decline warrants further investigation to determine the underlying causes and potential implications for profitability and liquidity.
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Average Payables Payment Period
Netflix Inc., average payables payment period calculation (quarterly data)
| 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 | 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 | 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. | 37 | 27 | 24 | 20 | 21 | 20 | 18 | 16 | 17 | 21 | 16 | 15 | 12 | 15 | 19 | 13 | 11 | ||||||
| Comcast Corp. | 117 | 115 | 123 | 119 | 115 | 112 | 115 | 120 | 118 | 123 | 123 | 122 | 121 | 120 | 117 | 113 | 116 | ||||||
| Meta Platforms Inc. | 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: 2026-03-31), 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 Q1 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 26.71 = 14
2 Click competitor name to see calculations.
The average payables payment period exhibited relative stability over the observed period, with fluctuations primarily occurring between 10 and 14 days. An initial period of consistency at 13 days in March 2022, followed by a decrease to 10 days in June 2022, establishes an early trend. This trend continued with 11 days in both September 2022 and March 2023, indicating a period of controlled payment practices.
- Overall Trend
- The period generally remained within a narrow range, suggesting consistent supplier relationships and effective cash management related to accounts payable. However, a slight increase in the average payment period was observed towards the end of the analyzed timeframe.
A noticeable increase to 14 days occurred in December 2022 and again in December 2023, potentially indicating a strategic decision to extend payment terms or a temporary liquidity constraint. Following these peaks, the period returned to 11 days in the subsequent quarters of both years. A further lengthening of the payment period is evident in the later quarters, reaching 13 days in September 2025, 14 days in December 2025, and remaining at 14 days through March 2026.
- Recent Developments
- The consistent 14-day payment period observed in the final three quarters suggests a potential shift in payment strategy or a change in supplier agreements. This warrants further investigation to determine the underlying cause and potential implications for supplier relationships and cash flow.
The fluctuations, while generally contained, suggest a dynamic approach to managing accounts payable. The recent trend towards a longer payment period should be monitored to assess its sustainability and impact on financial performance.
- Key Observations
- The average payables payment period remained relatively stable for the majority of the analyzed period, with a recent trend indicating a potential lengthening of payment terms. This shift requires further scrutiny to understand its drivers and consequences.
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