Netflix Inc (NFLX)
Current ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 6,178,500 | 5,327,760 | 5,877,160 | 4,168,910 |
| Total current liabilities | US$ in thousands | 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 | 6,855,700 | 7,257,900 | 6,933,980 | 6,857,810 |
| Current ratio | 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 | 0.90 | 0.73 | 0.85 | 0.61 |
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 exhibited fluctuations over the past eight quarters. The current ratio measures the company's ability to meet its short-term obligations with its short-term assets. An upward trend in the current ratio indicates an improved short-term liquidity position.
From Dec 31, 2022, to Sep 30, 2023, the current ratio increased from 1.17 to 1.29, reflecting a strengthening liquidity position. However, in the subsequent quarter, the ratio further improved to 1.33, indicating a strong ability to cover short-term liabilities.
Although the current ratio declined slightly to 1.26 on Mar 31, 2023, it remained above 1, signifying a healthy short-term liquidity position. The current ratio then decreased to 1.12 on Dec 31, 2023, indicating a slight reduction in the ability to cover short-term obligations with current assets.
Overall, while there have been fluctuations, the current ratio has generally remained above 1 in each period, suggesting that Netflix Inc. has maintained a relatively strong short-term liquidity position. However, management may need to monitor the trend to ensure the company can continue meeting its short-term obligations effectively.