Netflix Inc (NFLX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 20,156,440 | 18,875,850 | 17,630,320 | 16,614,470 |
| Property, plant and equipment | US$ in thousands | 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 | 565,221 | 481,992 | 452,399 | 434,372 |
| Fixed asset turnover | 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 | 35.66 | 39.16 | 38.97 | 38.25 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $33,723,290K ÷ $1,491,440K
= 22.61
The fixed asset turnover ratio for Netflix Inc. has remained relatively stable over the past eight quarters, averaging around 22. This indicates that the company generates approximately $22 in revenue for every dollar invested in fixed assets. A high fixed asset turnover ratio typically suggests efficient asset utilization, which could be attributed to Netflix's focus on streaming content and technology infrastructure. The consistency of the ratio over time reflects the company's ability to efficiently generate revenue from its fixed assets, a positive sign for investors and stakeholders.