Netflix Inc (NFLX)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 26.38 | 28.54 | 20.70 | 23.28 | 18.45 | |
| Number of days of payables | days | 13.84 | 12.79 | 17.64 | 15.68 | 19.79 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 26.38
= 13.84
To analyze the number of days of payables for Netflix Inc., we calculate the number of days it takes for the company to pay its suppliers for goods and services. The trend in the number of days of payables shows the efficiency of the company's payment cycle.
In 2023, Netflix's number of days of payables increased to 13.84 days from 12.79 days in 2022. This indicates that the company took slightly longer to pay its suppliers, which may suggest a less favorable payment cycle.
Comparing to earlier years, the number of days of payables had shown a decreasing trend from 17.64 days in 2021 to 19.79 days in 2019. This improvement suggests that Netflix had been managing its payables more efficiently during these periods.
Overall, the analysis reveals fluctuations in Netflix's number of days of payables, with a slight increase in 2023 but an improving trend in previous years. This metric is important in understanding the company's financial management and vendor relationships.