Netflix Inc (NFLX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,804,730 | 7,116,910 | 5,147,180 | 6,027,800 | 8,205,550 |
| Short-term investments | US$ in thousands | 1,779,010 | 20,973 | 911,276 | 0 | — |
| Total current liabilities | US$ in thousands | 10,755,400 | 8,860,660 | 7,930,970 | 8,488,970 | 7,805,780 |
| Cash ratio | 0.89 | 0.81 | 0.76 | 0.71 | 1.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,804,730K
+ $1,779,010K)
÷ $10,755,400K
= 0.89
The cash ratio of Netflix Inc has shown a fluctuating trend over the past five years, starting at 1.05 in December 2020 and decreasing to 0.71 by December 2021. Subsequently, there was a gradual improvement with the ratio increasing to 0.76 in December 2022, 0.81 in December 2023, and reaching 0.89 by December 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has improved over the period under review. However, it is worth noting that the cash ratio is still relatively low, suggesting that Netflix may need to ensure its liquidity position remains strong to meet its financial obligations efficiently.