NFLXNEUTRAL

NFLX Current Ratio Analysis

1.14x

Higher than 13% of Communication Services sector peers

Updated 18h ago·SEC filings & market data

Key Takeaway

A current ratio of 1.14x means Netflix holds $1.14 in current assets for every $1.00 of current liabilities, a basic measure of short-term liquidity.

Sector Performance

13th percentile

NFLX

1.14x

Sector Median

1.85x

Sector Avg

2.97x

Prior Period

1.41x(Jul 2026)

↓ Declining
📊

Deep Analysis

A current ratio of 1.14x means Netflix holds $1.14 in current assets for every $1.00 of current liabilities, a basic measure of short-term liquidity.

That sits well below the sector median of 1.85x, placing the company in the 12th percentile among Communication Services peers. The year-over-year change is N/A, and the ratio fell 19.1% from the prior quarter, though only two data points are available to establish a trend. The combination of a below-median level and a sharp quarterly decline points to tighter near-term liquidity than most competitors, which increases financial risk if cash inflows slow. However, the absolute ratio above 1.0x still means current assets cover current obligations, so the immediate solvency risk is limited. This metric contradicts the overall NEUTRAL verdict by leaning toward a more cautious view, but it does not alone overturn the assessment.

Frequently Asked Questions

What does the Current Ratio tell investors about NFLX?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does NFLX's Current Ratio compare to its sector?

NFLX's Current Ratio of 1.14x compares to a Communication Services sector median of 1.85x, placing it in the 13th percentile.

Who are NFLX's closest peers by Current Ratio?

The closest Communication Services peers by Current Ratio include: BIDU (1.85x), GOOGL (1.92x), YELP (1.74x), ZD (1.66x), SPOT (2.06x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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NFLX

1.14x

Sector Median

1.85x

Sector Avg

2.97x

How NFLX's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.