Netflix Inc (NFLX)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 13,100,400 | 12,129,100 | 9,615,550 | 9,921,310 | 9,918,130 | 10,779,500 | 11,506,300 | 10,482,600 | 9,266,470 | 8,816,900 | 7,840,780 | 8,098,020 | 8,069,820 | 9,415,790 | 9,604,280 | 10,107,500 | 9,761,580 | 9,826,480 | 8,564,140 | 6,447,780 |
| 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 |
| Current ratio | 1.22 | 1.13 | 0.95 | 1.07 | 1.12 | 1.29 | 1.33 | 1.26 | 1.17 | 1.14 | 1.05 | 1.05 | 0.95 | 1.17 | 1.23 | 1.27 | 1.25 | 1.24 | 1.12 | 0.82 |
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, which measures its ability to cover short-term obligations with its current assets, has shown fluctuations over the past few years. From March 31, 2020, at 0.82, the ratio increased steadily to reach a peak of 1.33 on June 30, 2023. This upward trend indicates an improvement in Netflix's liquidity position and its ability to meet short-term liabilities comfortably.
However, starting from March 31, 2024, the current ratio began to decline, dropping to 0.95 on June 30, 2024. This decrease suggests a potential deterioration in the company's liquidity position, as its current assets may no longer be sufficient to cover its current liabilities as effectively as before.
Overall, while Netflix's current ratio has shown both positive and negative variations in recent periods, it is essential for investors and stakeholders to continue monitoring this ratio to assess the company's short-term liquidity and financial health accurately.