Netflix Inc (NFLX)
Working capital 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 |
| Total current assets | US$ in thousands | 13,100,400 | 9,918,130 | 9,266,470 | 8,069,820 | 9,761,580 |
| Total current liabilities | US$ in thousands | 10,755,400 | 8,860,660 | 7,930,970 | 8,488,970 | 7,805,780 |
| Working capital turnover | 16.63 | 31.89 | 23.67 | — | 12.78 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $39,001,000K ÷ ($13,100,400K – $10,755,400K)
= 16.63
The working capital turnover of Netflix Inc has shown a fluctuating trend over the years. It stood at 12.78 in December 31, 2020, increased to 23.67 by December 31, 2022, and further rose to 31.89 by December 31, 2023. The significant increase in the working capital turnover indicates that Netflix has been efficiently utilizing its working capital to generate revenue. However, there was a noticeable decline to 16.63 by December 31, 2024. It suggests that the company may have experienced changes in its operations or management of working capital during that period. Overall, the varying levels of working capital turnover reflect Netflix's ability to manage its working capital effectively for revenue generation.