Netflix Inc (NFLX)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 39,001,000 | 33,723,300 | 31,615,600 | 29,697,800 | 24,996,100 |
| Receivables | US$ in thousands | 2,402,410 | 1,639,260 | 2,424,390 | 913,883 | 742,169 |
| Receivables turnover | 16.23 | 20.57 | 13.04 | 32.50 | 33.68 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $39,001,000K ÷ $2,402,410K
= 16.23
The receivables turnover ratio for Netflix Inc declined from 33.68 in December 2020 to 32.50 in December 2021, indicating a slightly less efficient management of receivables during that period. However, a more significant decrease was observed in December 2022, with the ratio dropping to 13.04, suggesting a potential issue with collecting accounts receivable in a timely manner.
Subsequently, there was a partial improvement in receivables turnover in December 2023, with the ratio increasing to 20.57, although it remained below the initial levels. By December 2024, the receivables turnover ratio further improved to 16.23, indicating a step towards better management of receivables compared to the previous year.
Overall, fluctuations in the receivables turnover ratio for Netflix Inc over the analyzed period highlight the importance of monitoring and addressing changes in the efficiency of collecting accounts receivable to maintain healthy cash flows and financial performance.