Netflix Inc (NFLX)
Total 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 |
| Total assets | US$ in thousands | 48,732,000 | 49,501,800 | 50,817,500 | 49,490,300 | 48,594,800 | 47,562,200 | 46,350,900 | 45,330,900 | 44,584,700 | 42,739,900 | 40,971,000 | 40,123,000 | 39,280,400 | 38,622,500 | 37,175,300 | 35,059,900 | 33,975,700 | 30,941,700 | 30,171,300 | 27,218,600 |
| Total asset turnover | 0.69 | 0.66 | 0.63 | 0.64 | 0.65 | 0.66 | 0.67 | 0.67 | 0.67 | 0.67 | 0.67 | 0.66 | 0.64 | 0.62 | 0.61 | 0.61 | 0.59 | 0.61 | 0.58 | 0.61 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $33,723,290K ÷ $48,732,000K
= 0.69
Netflix Inc.'s total asset turnover has shown fluctuating trends over the past eight quarters. The total asset turnover ratio measures a company's ability to generate sales from its assets. A higher ratio indicates that the company is effectively utilizing its assets to generate revenue.
Netflix's total asset turnover ratio has ranged from 0.63 to 0.69 over the last eight quarters, indicating some variability in the company's asset utilization. The ratio peaked at 0.69 at the end of December 2023, suggesting that for every dollar of assets, Netflix generated $0.69 in sales. However, the ratio showed a decreasing trend from June 2022 to June 2023, hitting a low of 0.63, indicating a possible decline in asset efficiency during that period.
It is important to note that the nature of Netflix's business, which heavily relies on content creation and licensing, can impact the interpretation of the total asset turnover ratio. Overall, further analysis of the company's business operations and industry dynamics would be necessary to fully understand the drivers behind the fluctuating total asset turnover ratio.