Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Netflix Inc., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.19 | 1.22 | 1.12 | 1.17 | 0.95 | |
| Quick ratio | 1.14 | 1.18 | 1.07 | 1.12 | 0.91 | |
| Cash ratio | 0.83 | 0.89 | 0.81 | 0.76 | 0.71 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The liquidity position, as indicated by the presented ratios, demonstrates a generally improving trend over the five-year period. All three measured ratios – current, quick, and cash – exhibit increases from 2021 to 2024, suggesting enhanced short-term solvency. However, a slight moderation in liquidity is observed in the most recent year, 2025.
- Current Ratio
- The current ratio increased from 0.95 in 2021 to 1.22 in 2024, indicating a growing ability to cover short-term liabilities with short-term assets. The ratio experienced a minor decrease to 1.19 in 2025, but remains above the level observed in 2021. This suggests a stable, though slightly diminished, capacity to meet immediate obligations.
- Quick Ratio
- Similar to the current ratio, the quick ratio shows an upward trajectory from 0.91 in 2021 to 1.18 in 2024. This improvement suggests an increasing ability to meet short-term obligations with the most liquid assets, excluding inventory. A slight decline to 1.14 in 2025 is noted, but the ratio remains healthy and above the initial value.
- Cash Ratio
- The cash ratio consistently increased from 0.71 in 2021 to 0.89 in 2024, demonstrating a strengthening ability to cover immediate liabilities with only cash and cash equivalents. The ratio decreased slightly to 0.83 in 2025, but continues to indicate a strong liquid position. This ratio consistently remains the lowest of the three, which is typical as companies utilize assets beyond cash for operations.
Overall, the trend suggests a strengthening liquidity profile from 2021 through 2024, followed by a modest pullback in 2025. The ratios remain at levels that generally indicate a comfortable short-term financial position, although the slight decrease in 2025 warrants continued monitoring.
Current Ratio
Netflix Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 13,020,191) | 13,100,379) | 9,918,133) | 9,266,473) | 8,069,825) | |
| Current liabilities | 10,980,930) | 10,755,400) | 8,860,655) | 7,930,974) | 8,488,966) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.19 | 1.22 | 1.12 | 1.17 | 0.95 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Alphabet Inc. | 2.01 | 1.84 | 2.10 | 2.38 | 2.93 | |
| Comcast Corp. | 0.88 | 0.68 | 0.60 | 0.78 | 0.85 | |
| Meta Platforms Inc. | 2.60 | 2.98 | 2.67 | 2.20 | 3.15 | |
| Trade Desk Inc. | — | 1.86 | 1.72 | 1.90 | 1.71 | |
| Walt Disney Co. | 0.71 | 0.73 | 1.05 | 1.00 | 1.08 | |
| Current Ratio, Sector | ||||||
| Media & Entertainment | — | 1.59 | 1.67 | 1.77 | 2.08 | |
| Current Ratio, Industry | ||||||
| Communication Services | — | 1.24 | 1.31 | 1.29 | 1.42 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 13,020,191 ÷ 10,980,930 = 1.19
2 Click competitor name to see calculations.
The current ratio exhibits a fluctuating pattern over the five-year period. Initially, the ratio was below one, indicating potential short-term liquidity concerns, but subsequently improved and remained above one for the majority of the analyzed timeframe.
- Current Ratio Trend
- In 2021, the current ratio stood at 0.95, suggesting that current liabilities exceeded current assets. This implies a potential challenge in meeting short-term obligations with available current assets. A significant increase was observed in 2022, with the ratio rising to 1.17, indicating improved liquidity. The ratio experienced a slight decrease in 2023 to 1.12, but continued to demonstrate a position where current assets exceeded current liabilities. Further improvement occurred in 2024, reaching 1.22, the highest value within the observed period. A minor decline to 1.19 was noted in 2025.
The observed trend suggests a strengthening of the short-term financial position, particularly from 2021 to 2024. While a slight decrease occurred in the most recent year, the ratio remained above 1.0, generally considered a benchmark for adequate short-term liquidity. The fluctuations suggest a dynamic management of current assets and liabilities.
- Comparative Analysis of Current Assets and Liabilities
- The increase in the current ratio from 2021 to 2022 is attributable to a larger decrease in current liabilities than the increase in current assets. From 2022 to 2024, the current ratio increased due to a more substantial growth in current assets compared to current liabilities. The slight decrease in the current ratio from 2024 to 2025 is due to a larger increase in current liabilities than current assets.
Overall, the current ratio indicates a generally improving liquidity position, although the most recent year shows a stabilization of this trend. Continued monitoring of this ratio, alongside other liquidity metrics, is recommended to assess the company’s ongoing ability to meet its short-term obligations.
Quick Ratio
Netflix Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 9,033,681) | 7,804,733) | 7,116,913) | 5,147,176) | 6,027,804) | |
| Short-term investments | 28,678) | 1,779,006) | 20,973) | 911,276) | —) | |
| Trade receivables | 2,031,476) | 1,335,304) | 1,287,054) | 988,898) | 804,320) | |
| Other | 1,428,302) | 1,749,412) | 1,084,257) | 1,826,388) | 913,883) | |
| Total quick assets | 12,522,137) | 12,668,455) | 9,509,197) | 8,873,738) | 7,746,007) | |
| Current liabilities | 10,980,930) | 10,755,400) | 8,860,655) | 7,930,974) | 8,488,966) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.14 | 1.18 | 1.07 | 1.12 | 0.91 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Alphabet Inc. | 1.85 | 1.66 | 1.94 | 2.22 | 2.79 | |
| Comcast Corp. | 0.70 | 0.53 | 0.50 | 0.62 | 0.71 | |
| Meta Platforms Inc. | 2.42 | 2.82 | 2.55 | 2.01 | 2.94 | |
| Trade Desk Inc. | — | 1.83 | 1.69 | 1.87 | 1.65 | |
| Walt Disney Co. | 0.55 | 0.54 | 0.85 | 0.83 | 0.94 | |
| Quick Ratio, Sector | ||||||
| Media & Entertainment | — | 1.43 | 1.53 | 1.61 | 1.93 | |
| Quick Ratio, Industry | ||||||
| Communication Services | — | 1.04 | 1.12 | 1.08 | 1.23 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 12,522,137 ÷ 10,980,930 = 1.14
2 Click competitor name to see calculations.
The quick ratio demonstrates a generally improving liquidity position over the observed period. Initial values indicate a potential short-term solvency concern, which is subsequently addressed and maintained through the end of the period.
- Overall Trend
- The quick ratio experienced fluctuations but generally trended upward from 2021 to 2024, before experiencing a slight decrease in 2025. The ratio began at 0.91 in 2021, increased to a peak of 1.18 in 2024, and then decreased slightly to 1.14 in 2025.
- 2021-2022
- A notable improvement occurred between 2021 and 2022, with the quick ratio increasing from 0.91 to 1.12. This improvement was driven by a decrease in current liabilities, which fell from US$8,488,966 thousand to US$7,930,974 thousand, while quick assets increased from US$7,746,007 thousand to US$8,873,738 thousand. This suggests an enhanced ability to meet short-term obligations using highly liquid assets.
- 2022-2023
- From 2022 to 2023, the quick ratio experienced a slight decrease, moving from 1.12 to 1.07. This was due to a larger increase in current liabilities (US$7,930,974 thousand to US$8,860,655 thousand) than the increase in quick assets (US$8,873,738 thousand to US$9,509,197 thousand). Despite the decrease, the ratio remained above 1.0, indicating sufficient liquid assets to cover current liabilities.
- 2023-2024
- The period between 2023 and 2024 saw the most significant improvement in the quick ratio, rising to 1.18. This was primarily driven by a substantial increase in total quick assets, which grew from US$9,509,197 thousand to US$12,668,455 thousand. Current liabilities also increased, but at a slower pace (US$8,860,655 thousand to US$10,755,400 thousand).
- 2024-2025
- A minor decline in the quick ratio was observed from 2024 to 2025, with the ratio decreasing to 1.14. This was attributable to a smaller increase in quick assets (US$12,668,455 thousand to US$12,522,137 thousand) coupled with a larger increase in current liabilities (US$10,755,400 thousand to US$10,980,930 thousand). The ratio remained at a healthy level, however.
Overall, the quick ratio indicates a strengthening liquidity position, with a slight moderation in the most recent period. The company consistently maintained a ratio above 1.0 from 2022 onward, suggesting a comfortable margin of safety in meeting its short-term obligations.
Cash Ratio
Netflix Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 9,033,681) | 7,804,733) | 7,116,913) | 5,147,176) | 6,027,804) | |
| Short-term investments | 28,678) | 1,779,006) | 20,973) | 911,276) | —) | |
| Total cash assets | 9,062,359) | 9,583,739) | 7,137,886) | 6,058,452) | 6,027,804) | |
| Current liabilities | 10,980,930) | 10,755,400) | 8,860,655) | 7,930,974) | 8,488,966) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.83 | 0.89 | 0.81 | 0.76 | 0.71 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Alphabet Inc. | 1.23 | 1.07 | 1.36 | 1.64 | 2.17 | |
| Comcast Corp. | 0.28 | 0.18 | 0.15 | 0.17 | 0.30 | |
| Meta Platforms Inc. | 1.95 | 2.32 | 2.05 | 1.51 | 2.27 | |
| Trade Desk Inc. | — | 0.67 | 0.55 | 0.71 | 0.53 | |
| Walt Disney Co. | 0.17 | 0.17 | 0.46 | 0.40 | 0.51 | |
| Cash Ratio, Sector | ||||||
| Media & Entertainment | — | 0.94 | 1.04 | 1.09 | 1.40 | |
| Cash Ratio, Industry | ||||||
| Communication Services | — | 0.62 | 0.68 | 0.64 | 0.80 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 9,062,359 ÷ 10,980,930 = 0.83
2 Click competitor name to see calculations.
The cash ratio exhibited an overall increasing trend from 2021 to 2024, followed by a slight decrease in the most recent year presented. This indicates a changing capacity to meet short-term obligations with only cash and cash equivalents.
- Cash Ratio Trend
- The cash ratio began at 0.71 in 2021 and increased consistently through 2024, reaching 0.89. This suggests an improving ability to cover current liabilities with immediately available cash. However, the ratio decreased to 0.83 in 2025, representing a minor reduction in this liquidity strength.
Total cash assets generally increased over the period, with a notable rise between 2022 and 2024. While there was a decrease in total cash assets from 2024 to 2025, the value remained significantly higher than in the earlier years of the observed period.
- Cash Assets
- Total cash assets increased from US$6,027,804 thousand in 2021 to US$9,583,739 thousand in 2024, demonstrating substantial growth in liquid assets. A subsequent decrease to US$9,062,359 thousand in 2025, while present, did not negate the overall positive trend.
Current liabilities also increased over the period, though not at the same rate as cash assets, particularly between 2023 and 2025. This increase in liabilities contributed to the dynamic observed in the cash ratio.
- Current Liabilities
- Current liabilities rose from US$8,488,966 thousand in 2021 to US$10,980,930 thousand in 2025. The rate of increase was more pronounced in the later years, potentially requiring a greater reliance on liquid assets to fulfill short-term obligations.
The combination of increasing cash assets and increasing current liabilities resulted in the observed cash ratio trend. The peak ratio in 2024 suggests a strong short-term liquidity position at that time, while the slight decline in 2025 warrants continued monitoring.