Netflix Inc (NFLX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 39,000,950 | 37,587,270 | 36,304,240 | 34,932,230 | 33,723,290 | 32,742,520 | 32,126,440 | 31,909,280 | 31,615,550 | 31,472,820 | 31,030,700 | 30,402,340 | 29,697,850 | 28,632,970 | 27,585,140 | 26,391,650 | 24,996,060 | 23,819,050 | 22,628,310 | 21,403,140 |
| Property, plant and equipment | US$ in thousands | 1,593,760 | 1,568,210 | 1,510,960 | 1,501,170 | 1,491,440 | 1,498,390 | 1,471,970 | 1,413,090 | 1,398,260 | 1,372,750 | 1,361,920 | 1,383,760 | 1,323,450 | 1,220,110 | 1,107,440 | 1,015,420 | 960,183 | 828,118 | 751,941 | 650,455 |
| Fixed asset turnover | 24.47 | 23.97 | 24.03 | 23.27 | 22.61 | 21.85 | 21.83 | 22.58 | 22.61 | 22.93 | 22.78 | 21.97 | 22.44 | 23.47 | 24.91 | 25.99 | 26.03 | 28.76 | 30.09 | 32.90 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $39,000,950K ÷ $1,593,760K
= 24.47
Netflix Inc's fixed asset turnover has been gradually declining over the past few years, indicating a decreasing efficiency in generating revenue from its fixed assets. The ratio started at a high of 32.90 in March 2020 but has decreased to 24.47 as of December 31, 2024.
A fixed asset turnover ratio below 1 suggests that the company is not efficiently utilizing its fixed assets to generate sales. A decreasing trend in this ratio could be concerning as it may indicate underutilization or impairment of fixed assets, which could impact the company's profitability and operational efficiency in the long run.
Netflix Inc should closely monitor its fixed asset turnover ratio to ensure that its fixed assets are being effectively utilized to generate revenue. Management may need to review the company's asset management strategies and consider potential investments or operational changes to improve efficiency and profitability.