Netflix Inc (NFLX)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 39,000,950 | 37,587,270 | 36,304,240 | 34,932,230 | 33,723,290 | 32,742,520 | 32,126,440 | 31,909,280 | 31,615,550 | 31,472,820 | 31,030,700 | 30,402,340 | 29,697,850 | 28,632,970 | 27,585,140 | 26,391,650 | 24,996,060 | 23,819,050 | 22,628,310 | 21,403,140 |
| Receivables | US$ in thousands | 2,402,410 | 1,251,780 | 1,237,660 | 1,192,740 | 1,639,260 | 1,289,680 | 1,229,480 | 1,143,610 | 2,424,390 | 1,436,300 | 887,640 | 845,285 | 913,883 | 801,665 | 756,687 | 623,240 | 742,169 | 620,082 | 640,471 | 541,631 |
| Receivables turnover | 16.23 | 30.03 | 29.33 | 29.29 | 20.57 | 25.39 | 26.13 | 27.90 | 13.04 | 21.91 | 34.96 | 35.97 | 32.50 | 35.72 | 36.46 | 42.35 | 33.68 | 38.41 | 35.33 | 39.52 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $39,000,950K ÷ $2,402,410K
= 16.23
The receivables turnover ratio of Netflix Inc, calculated by dividing net credit sales by average accounts receivable, fluctuated over the periods analyzed. The ratio was relatively high in the range of 33 to 42 from March 2020 to March 2021, indicating that Netflix was efficient in collecting receivables during those periods. However, from September 2021 to December 2024, the ratio declined significantly, reaching as low as 13.04 in December 2022 and 16.23 in December 2024.
A decreasing trend in receivables turnover may suggest that the company is taking longer to collect payments from its customers, which could potentially indicate issues with credit policies, customer payments, or an increase in outstanding receivables. It is important for Netflix to address this trend to ensure healthy cash flow and efficient working capital management.
Overall, a declining receivables turnover ratio for Netflix Inc may warrant further investigation into the company's credit and collection practices to improve efficiency in receivables management.