Netflix Inc (NFLX)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | 48.21 | 48.81 | 53.53 | 75.24 | |
| DOH | days | — | 7.57 | 7.48 | 6.82 | 4.85 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The days of inventory on hand (DOH) for Netflix Inc have exhibited an upward trend over the years based on the provided data. As of December 31, 2020, the company had an inventory holding period of 4.85 days, which increased to 6.82 days by December 31, 2021. This trend continued, with the DOH reaching 7.48 days by the end of 2022 and further increasing to 7.57 days by the end of 2023. However, there is missing data for December 31, 2024.
The rising trend in DOH suggests that Netflix is taking longer to convert its inventory into sales, which could potentially indicate inefficiencies in inventory management. This increase in DOH could be a result of various factors such as changes in demand patterns, production issues, or supply chain disruptions.
It would be important for Netflix to closely monitor its inventory levels and implement appropriate strategies to optimize inventory turnover and minimize excess inventory holding costs. Maintaining an optimal balance between inventory levels and customer demand is crucial for enhancing operational efficiency and profitability in the long run.