Netflix Inc (NFLX)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 16.23 | 20.57 | 13.04 | 32.50 | 33.68 | |
| DSO | days | 22.48 | 17.74 | 27.99 | 11.23 | 10.84 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 16.23
= 22.48
Based on the provided data, Netflix Inc's Days Sales Outstanding (DSO) has shown fluctuations over the years. In December 31, 2020, the DSO was at 10.84 days, indicating that on average, it took the company approximately 10.84 days to collect revenue from its sales.
By December 31, 2021, the DSO increased slightly to 11.23 days, suggesting a marginal delay in collecting sales revenue compared to the previous year.
The DSO spiked significantly to 27.99 days by December 31, 2022, which could signal potential challenges in collecting receivables promptly and efficiently.
However, by December 31, 2023, the DSO reduced to 17.74 days, indicating an improvement in the company's efficiency in collecting sales revenue compared to the previous year.
In the latest available data as of December 31, 2024, the DSO increased to 22.48 days, suggesting a moderate delay in collecting sales revenue compared to the previous year.
Overall, fluctuations in Netflix Inc's DSO might point to changes in its credit policies, customer payment behaviors, or operational efficiency in managing accounts receivable. Monitoring DSO trends can provide insights into the company's liquidity management and effectiveness in converting sales into cash.