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.


See also:

Netflix Inc Payables Turnover