Netflix Inc (NFLX)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 12,440,210 | 11,707,590 | 11,140,800 | 10,537,570 |
| Payables | US$ in thousands | 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 | 674,347 | 444,129 | 442,194 | 439,496 |
| Payables turnover | 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 | 18.45 | 26.36 | 25.19 | 23.98 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $19,715,360K ÷ $747,412K
= 26.38
The payables turnover ratio for Netflix Inc. shows the company's efficiency in managing its accounts payable. The ratio is calculated by dividing the total purchases made on credit by the average accounts payable balance during the period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.
Looking at the data provided, we see fluctuations in Netflix's payables turnover ratio over the past eight quarters. In the most recent quarter, the payables turnover ratio was 26.38, which decreased from 37.07 in the previous quarter. This may indicate that Netflix is taking longer to pay off its suppliers compared to the previous quarter.
When comparing the latest ratio with the same period in the previous year, we see a slight increase from 28.54 in Dec 2022 to 26.38 in Dec 2023. This suggests that Netflix has improved its efficiency in paying off its accounts payable.
It's important to note that a low payables turnover ratio may signal potential liquidity issues or strained relationships with suppliers, whereas a very high ratio may indicate aggressive supplier payment tactics that could strain supplier relationships.
Overall, Netflix's payables turnover ratio has shown fluctuations, and it is essential for the company to manage its payables effectively to maintain good relationships with its suppliers and ensure smooth operations.