Netflix Inc (NFLX)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 21,038,500 19,715,400 19,168,300 17,332,700 15,276,300
Inventory US$ in thousands 408,936 392,735 323,818 203,042
Inventory turnover 48.21 48.81 53.53 75.24

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $21,038,500K ÷ $—K
= —

The inventory turnover ratio of Netflix Inc has shown a decreasing trend over the years. It decreased from 75.24 in December 31, 2020, to 53.53 in December 31, 2021, and further declined to 48.81 by December 31, 2022. There was a slight decrease to 48.21 by December 31, 2023. However, the data for December 31, 2024, is not available.

A decreasing inventory turnover ratio could indicate potential issues with managing inventory efficiently or a slowdown in sales relative to the amount of inventory on hand. It may suggest that the company is holding onto its inventory for a longer period, which can tie up cash and increase storage costs. Further analysis of the company's inventory management practices and sales performance would provide more insights into the reasons behind this trend.


See also:

Netflix Inc Inventory Turnover