Netflix Inc (NFLX)
Total 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 |
| Total assets | US$ in thousands | 53,630,400 | 52,281,800 | 49,098,900 | 48,827,700 | 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 |
| Total asset turnover | 0.73 | 0.72 | 0.74 | 0.72 | 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 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $39,000,950K ÷ $53,630,400K
= 0.73
The total asset turnover ratio measures how efficiently a company is utilizing its assets to generate sales. In the case of Netflix Inc, the total asset turnover has gradually increased from 0.61 in March 2020 to 0.73 by December 2024. This improvement indicates that Netflix has been able to generate more revenue for each dollar of assets invested over the years.
The consistent upward trend in the total asset turnover ratio suggests that Netflix is becoming more efficient in utilizing its assets to drive revenue growth. This could be attributed to effective management of resources, increasing demand for its streaming services, or strategic investments in content creation and technology.
Investors and stakeholders may view the improving total asset turnover positively as it reflects the company's ability to generate more sales relative to its asset base. However, it is important to consider other factors in conjunction with this ratio analysis to get a holistic view of Netflix's financial performance and operational efficiency.