Netflix Inc (NFLX)
Payables 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 |
| Payables | US$ in thousands | 899,909 | 747,412 | 671,513 | 837,483 | 656,183 |
| Payables turnover | 23.38 | 26.38 | 28.54 | 20.70 | 23.28 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $21,038,500K ÷ $899,909K
= 23.38
Netflix Inc's payables turnover has shown fluctuation over the years according to the provided data.
- In December 31, 2020, the payables turnover was 23.28, indicating that the company took approximately 23.28 days to pay off its accounts payable during that period.
- By December 31, 2021, the payables turnover decreased to 20.70, suggesting that the company took longer to pay off its accounts payable, extending to around 20.70 days.
- The payables turnover then increased significantly to 28.54 by December 31, 2022, showing that the company was able to manage its accounts payable more efficiently, taking only about 28.54 days to pay off its suppliers and vendors.
- In the following years, Netflix maintained relatively strong payables turnover ratios, with 26.38 by December 31, 2023, and 23.38 by December 31, 2024.
Overall, the trend in Netflix Inc's payables turnover indicates some variability in the efficiency of managing its accounts payable. The increase in payables turnover from 2021 to 2022 suggests improved efficiency in settling its payables, which could potentially have positive implications for the company's working capital management and relationships with suppliers.