Netflix Inc (NFLX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,918,130 | 9,266,470 | 8,069,820 | 9,761,580 | 6,178,500 |
| Total current liabilities | US$ in thousands | 8,860,660 | 7,930,970 | 8,488,970 | 7,805,780 | 6,855,700 |
| Current ratio | 1.12 | 1.17 | 0.95 | 1.25 | 0.90 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,918,130K ÷ $8,860,660K
= 1.12
The current ratio of Netflix Inc. has fluctuated over the past five years. The ratio measures the company's ability to meet its short-term obligations with its short-term assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, while a ratio below 1 suggests the opposite.
In 2023, the current ratio of 1.12 indicates that Netflix has $1.12 in current assets for every $1 of current liabilities, representing a slight decrease from the previous year. This may raise concerns about the company's ability to cover its short-term obligations.
In 2022, the current ratio of 1.17 showed an improvement from the previous year, suggesting that the company had a slightly stronger ability to meet its short-term obligations.
In 2021, the current ratio of 0.95 was below 1, indicating that Netflix had fewer current assets than current liabilities, which may raise concerns about its short-term liquidity.
In 2020, the current ratio of 1.25 reflected an improvement from the previous year, indicating that the company had a strong ability to cover its short-term obligations.
In 2019, the current ratio of 0.90 was below 1, signaling that Netflix had fewer current assets than current liabilities, potentially indicating a lower short-term liquidity position.
Overall, the current ratio trend indicates some fluctuations in the company's ability to meet its short-term obligations, suggesting the need for careful monitoring of its liquidity position.