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.