Netflix Inc (NFLX)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 21,038,450 | 20,578,570 | 20,389,480 | 19,888,810 | 19,715,360 | 19,812,040 | 19,669,910 | 19,687,200 | 19,168,280 | 19,003,700 | 18,421,630 | 17,748,880 | 17,332,690 | 16,258,270 | 15,919,430 | 15,545,130 | 15,276,320 | 14,577,180 | 13,807,350 | 13,169,300 |
| Inventory | US$ in thousands | — | 437,653 | 0 | -31,662,100 | 408,936 | 482,375 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Inventory turnover | — | 47.02 | — | — | 48.21 | 41.07 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $21,038,450K ÷ $—K
= —
The inventory turnover ratio for Netflix Inc provides insight into how efficiently the company is managing its inventory. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally seen as a positive sign.
Based on the available data, Netflix's inventory turnover was not calculable for the periods up to March 31, 2023. However, in the subsequent quarters, the inventory turnover ratio showed significant improvement. For example, as of September 30, 2023, the inventory turnover ratio was 41.07, indicating that Netflix was selling and replenishing its inventory more than 41 times during that period.
By December 31, 2024, the inventory turnover ratio had increased further to 47.02, which suggests that Netflix continued to efficiently manage its inventory levels, selling and replenishing inventory almost 47 times during that period.
Overall, the trend of increasing inventory turnover ratios for Netflix from September 30, 2023, to December 31, 2024, indicates an improvement in the company's inventory management efficiency, which could lead to better liquidity and profitability in the future.