Netflix Inc (NFLX)
Payables 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 |
| Payables | US$ in thousands | 899,909 | 641,953 | 598,557 | 607,348 | 747,412 | 534,429 | 615,374 | 591,987 | 671,513 | 560,156 | 504,278 | 617,202 | 837,483 | 643,059 | 622,931 | 532,942 | 656,183 | 541,298 | 446,668 | 545,488 |
| Payables turnover | 23.38 | 32.06 | 34.06 | 32.75 | 26.38 | 37.07 | 31.96 | 33.26 | 28.54 | 33.93 | 36.53 | 28.76 | 20.70 | 25.28 | 25.56 | 29.17 | 23.28 | 26.93 | 30.91 | 24.14 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $21,038,450K ÷ $899,909K
= 23.38
Payables turnover is a financial ratio that measures how efficiently a company is managing its trade credit by paying its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly.
Based on the provided data for Netflix Inc, we observe fluctuations in the payables turnover ratio over the period from March 31, 2020, to December 31, 2024. The payables turnover ratio ranged from a low of 20.70 on December 31, 2021, to a high of 37.07 on September 30, 2023.
Overall, Netflix's payables turnover ratio showed variability but generally remained at relatively high levels throughout the period. This could suggest that the company is effectively managing its accounts payable by paying its suppliers in a timely manner. However, the significant fluctuations in the ratio over the years may also indicate changes in the company's payment policies or supplier relationships.
It is essential to consider other factors and ratios in conjunction with the payables turnover ratio to gain a comprehensive understanding of Netflix's financial performance and management of its working capital.