Netflix Inc (NFLX)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 39,001,000 | 33,723,300 | 31,615,600 | 29,697,800 | 24,996,100 |
| Property, plant and equipment | US$ in thousands | 1,593,760 | 1,491,440 | 1,398,260 | 1,323,450 | 960,183 |
| Fixed asset turnover | 24.47 | 22.61 | 22.61 | 22.44 | 26.03 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $39,001,000K ÷ $1,593,760K
= 24.47
The fixed asset turnover ratio for Netflix Inc has shown a decreasing trend from 26.03 in December 31, 2020, to 22.44 in December 31, 2021, and has stabilized around 22.61 for the following years up to December 31, 2023. It then experienced a slight increase to 24.47 by December 31, 2024. This ratio indicates how efficiently the company is generating revenue from its fixed assets. Despite the fluctuation, it appears that Netflix has been effectively utilizing its fixed assets to generate sales, with a noticeable improvement by the end of 2024.