Netflix Inc (NFLX)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 23.38 | 26.38 | 28.54 | 20.70 | 23.28 | |
| Number of days of payables | days | 15.61 | 13.84 | 12.79 | 17.64 | 15.68 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 23.38
= 15.61
To analyze Netflix Inc's number of days of payables, we observe a trend of the company's payment cycle over the years. The data shows that as of December 31, 2020, the number of days of payables was 15.68 days. Subsequently, it increased to 17.64 days by December 31, 2021, indicating a slight extension in the company's payment terms.
However, there was a notable decrease in the number of days of payables to 12.79 days by December 31, 2022, suggesting that Netflix was managing its payables more efficiently or negotiating better payment terms with suppliers.
By December 31, 2023, the number of days of payables increased slightly to 13.84 days, still lower than the levels seen in 2020 and 2021. This indicates that the company continued to effectively manage its payables.
Finally, as of December 31, 2024, the number of days of payables rose again to 15.61 days, showing a moderate increase from the previous year but still below the levels seen in 2020 and 2021.
Overall, Netflix Inc's number of days of payables fluctuated over the years, with a general trend of efficient management and control of payment cycles, allowing the company to effectively utilize its working capital resources.