Netflix Inc (NFLX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,804,730 | 7,457,020 | 6,624,940 | 7,024,770 | 7,116,910 | 7,353,240 | 7,662,790 | 6,714,590 | 5,147,180 | 6,113,730 | 5,819,450 | 6,008,950 | 6,027,800 | 7,526,680 | 7,777,530 | 8,403,700 | 8,205,550 | 8,392,390 | 7,153,250 | 5,151,880 |
| Short-term investments | US$ in thousands | 1,779,010 | 1,766,900 | 30,973 | 20,973 | 20,973 | 514,201 | 914,201 | 1,112,910 | 911,276 | — | — | — | 0 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 10,755,400 | 10,707,100 | 10,140,000 | 9,289,220 | 8,860,660 | 8,338,720 | 8,675,800 | 8,316,070 | 7,930,970 | 7,765,920 | 7,500,020 | 7,739,660 | 8,488,970 | 8,049,250 | 7,832,890 | 7,961,770 | 7,805,780 | 7,939,800 | 7,626,420 | 7,853,720 |
| Cash ratio | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | 0.71 | 0.94 | 0.99 | 1.06 | 1.05 | 1.06 | 0.94 | 0.66 |
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 is a financial metric that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. It is calculated by dividing a company's cash and cash equivalents by its current liabilities.
Looking at the historical data of Netflix Inc's cash ratio from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over this period. The cash ratio started at 0.66 on March 31, 2020, indicating that Netflix had $0.66 in cash and cash equivalents for every dollar of current liabilities.
The cash ratio increased to 1.06 by September 30, 2020, and remained relatively stable around this level for the next few quarters. This indicates that Netflix improved its ability to cover its short-term liabilities with cash during this period.
However, from December 31, 2021, the cash ratio began to decline, reaching a low of 0.66 on June 30, 2024. This downward trend suggests that Netflix's ability to cover its short-term liabilities with cash and cash equivalents decreased during this period.
Overall, fluctuations in the cash ratio of Netflix Inc over the years indicate variations in the company's liquidity position and its ability to meet short-term financial obligations with available cash resources. Management should closely monitor this ratio to ensure sufficient liquidity levels for operational needs and financial stability.