Netflix Inc (NFLX)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,804,730 | 7,457,020 | 6,624,940 | 7,024,770 | 7,116,910 | 7,353,240 | 7,662,790 | 6,714,590 | 5,147,180 | 6,113,730 | 5,819,450 | 6,008,950 | 6,027,800 | 7,526,680 | 7,777,530 | 8,403,700 | 8,205,550 | 8,392,390 | 7,153,250 | 5,151,880 |
| Short-term investments | US$ in thousands | 1,779,010 | 1,766,900 | 30,973 | 20,973 | 20,973 | 514,201 | 914,201 | 1,112,910 | 911,276 | — | — | — | 0 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 2,402,410 | 1,251,780 | 1,237,660 | 1,192,740 | 1,639,260 | 1,289,680 | 1,229,480 | 1,143,610 | 2,424,390 | 1,436,300 | 887,640 | 845,285 | 913,883 | 801,665 | 756,687 | 623,240 | 742,169 | 620,082 | 640,471 | 541,631 |
| 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 |
| Quick ratio | 1.11 | 0.98 | 0.78 | 0.89 | 0.99 | 1.10 | 1.13 | 1.08 | 1.07 | 0.97 | 0.89 | 0.89 | 0.82 | 1.03 | 1.09 | 1.13 | 1.15 | 1.14 | 1.02 | 0.72 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,804,730K
+ $1,779,010K
+ $2,402,410K)
÷ $10,755,400K
= 1.11
The quick ratio is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher generally indicates that a company has an acceptable level of liquidity, as it suggests that the company can cover its current liabilities using its quick assets.
For Netflix Inc, the quick ratio has shown some fluctuations over the reported periods. As of December 31, 2024, the quick ratio stands at 1.11, indicating that Netflix has $1.11 in quick assets available to cover each $1 of current liabilities. This suggests that Netflix has a strong ability to meet its short-term obligations.
It is important to note that the quick ratio for Netflix has varied over time, ranging from a low of 0.72 on March 31, 2020, to a high of 1.15 on December 31, 2020. The ratio dipped below 1 in some periods, such as December 31, 2021, indicating a potential liquidity strain.
Overall, evaluating the quick ratio for Netflix Inc can provide insights into the company's liquidity position and its ability to meet short-term financial obligations using its quick assets. It is important for investors and analysts to track these ratios over time to assess any changes or trends in the company's liquidity position.