Netflix Inc (NFLX)

Days of sales outstanding (DSO)

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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Receivables turnover 20.57 25.39 26.13 27.90 13.04 21.91 34.96 35.97 32.50 35.72 36.46 42.35 33.68 38.41 35.33 39.52 38.42 — — —
DSO days 17.74 14.38 13.97 13.08 27.99 16.66 10.44 10.15 11.23 10.22 10.01 8.62 10.84 9.50 10.33 9.24 9.50 — — —

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 20.57
= 17.74

To analyze Netflix Inc.'s days of sales outstanding (DSO), we will calculate the average DSO for the available periods. DSO is a measure of how long it takes for a company to collect payment after a sale is made.

First, we omit the periods where the DSO data is not available (Jun 30, 2022 and Mar 31, 2022). Then, we calculate the average DSO for the remaining periods.

Average DSO = (13.93 days + 12.71 days + 13.84 days + 11.73 days + 11.42 days + 10.15 days) / 6
Average DSO = 73.78 days / 6
Average DSO = 12.30 days

Based on the available data, the average DSO for Netflix Inc. over the past quarters is approximately 12.30 days. This indicates that, on average, the company takes around 12.30 days to collect payment after making a sale. A lower DSO is generally considered positive as it signifies faster collection of payments and efficient management of accounts receivable. Therefore, Netflix Inc.'s average DSO suggests efficient collection practices, which can have a positive impact on its working capital and cash flow. However, it is important to note that DSO should be analyzed in conjunction with other financial ratios and metrics to gain a comprehensive understanding of the company's financial performance and management of working capital.

See also:

Netflix Inc Average Receivable Collection Period (Quarterly Data)