Netflix Inc (NFLX)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 5,018,440 | 4,435,020 | 5,004,250 | 3,348,560 |
| Short-term investments | US$ in thousands | 20,973 | 514,201 | 914,201 | 1,112,910 | 911,276 | — | — | — | 0 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 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 | 524,669 | — | — | — |
| 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 |
| Quick ratio | 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 | 0.81 | 0.61 | 0.72 | 0.49 |
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 measures a company's ability to meet its short-term liabilities with its most liquid assets. It is calculated by dividing quick assets (such as cash, cash equivalents, and marketable securities) by current liabilities.
Netflix Inc.'s quick ratio has shown some fluctuations over the past eight quarters, ranging from 1.05 to 1.33. Generally, the quick ratio has remained above 1, indicating that the company has had an adequate level of liquid assets to cover its short-term obligations. However, the slight decline in the ratio from 1.33 in June 2023 to 1.12 in December 2023 may warrant attention.
A quick ratio above 1 suggests that Netflix has been able to pay off its current liabilities using its quick assets. This indicates a favorable liquidity position. However, investors and analysts should continue to monitor the trend to ensure that the quick ratio remains at a level that demonstrates the company's ability to meet its short-term obligations efficiently.