Netflix Inc (NFLX)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 33,723,300 | 31,615,600 | 29,697,800 | 24,996,100 | 20,156,400 |
| Total assets | US$ in thousands | 48,732,000 | 48,594,800 | 44,584,700 | 39,280,400 | 33,975,700 |
| Total asset turnover | 0.69 | 0.65 | 0.67 | 0.64 | 0.59 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $33,723,300K ÷ $48,732,000K
= 0.69
The total asset turnover of Netflix Inc. has shown a generally increasing trend over the past five years, indicating an improvement in the company's efficiency in utilizing its assets to generate revenue. Specifically, the ratio has increased from 0.59 in 2019 to 0.69 in 2023. This implies that for every dollar of total assets held by the company, it generated $0.69 in revenue in 2023, compared to $0.59 in 2019. This suggests that Netflix has been effectively utilizing its assets to drive sales and potentially improve its overall financial performance. However, it is important to note that while the trend is positive, the ratio fluctuated slightly over the years, which could indicate varying degrees of efficiency in asset utilization.