Netflix Inc (NFLX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,116,910 | 5,147,180 | 6,027,800 | 8,205,550 | 5,018,440 |
| Short-term investments | US$ in thousands | 20,973 | 911,276 | 0 | — | — |
| Receivables | US$ in thousands | 1,639,260 | 2,424,390 | 913,883 | 742,169 | 524,669 |
| Total current liabilities | US$ in thousands | 8,860,660 | 7,930,970 | 8,488,970 | 7,805,780 | 6,855,700 |
| Quick ratio | 0.99 | 1.07 | 0.82 | 1.15 | 0.81 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,116,910K
+ $20,973K
+ $1,639,260K)
÷ $8,860,660K
= 0.99
The quick ratio of Netflix Inc. has fluctuated over the past five years. In 2023, the quick ratio stands at 1.12, down slightly from 1.17 in 2022 and up from 0.95 in 2021. The ratio indicates the company's ability to meet short-term obligations using its most liquid assets. A quick ratio above 1 suggests that Netflix has an adequate level of liquid assets to cover its short-term liabilities, providing a strong indication of financial stability. However, the downward trend from 2022 to 2023 warrants attention, as it may indicate a decrease in the company's ability to quickly cover its short-term obligations with its liquid assets. Further analysis of the components of the quick ratio and the company's overall liquidity position would be necessary to fully assess the implications of this trend.