Netflix Inc (NFLX)
Current ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
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 |
Current ratio | 1.22 | 1.12 | 1.17 | 0.95 | 1.25 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $13,100,400K ÷ $10,755,400K
= 1.22
The current ratio of Netflix Inc has fluctuated over the five-year period from December 31, 2020, to December 31, 2024. The current ratio is a measure of the company's ability to meet its short-term obligations with its current assets.
In December 2020, the current ratio was 1.25, indicating that Netflix had $1.25 in current assets for every $1 in current liabilities. However, by the end of December 2021, the current ratio decreased to 0.95, suggesting a potential liquidity concern as the company may have had difficulties meeting its short-term obligations with its current assets.
Subsequently, the current ratio improved in the following years, reaching 1.17 at the end of December 2022, 1.12 by December 2023, and 1.22 by December 2024. These ratios show a positive trend in Netflix's ability to cover its short-term liabilities with its current assets.
Overall, while there was a temporary decrease in the current ratio in 2021, Netflix managed to strengthen its liquidity position in the subsequent years, indicating a more favorable ability to meet its short-term obligations.