Netflix Inc (NFLX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,905,220 | 5,791,799 | 5,501,609 | 5,445,979 | 5,970,139 | 6,500,482 | 6,557,452 | 6,544,052 | 6,605,722 | 6,569,043 | 5,776,193 | 5,215,833 | 3,966,846 | 3,590,377 | 3,704,817 | 3,133,016 | 2,688,251 | 2,609,320 | 1,924,012 | 1,801,304 |
| Long-term debt | US$ in thousands | 14,143,400 | 13,900,800 | 14,070,200 | 14,038,000 | 14,353,100 | 13,888,100 | 14,233,300 | 14,534,600 | 14,693,100 | 14,793,700 | 14,926,900 | 14,860,600 | 15,809,100 | 15,547,600 | 15,295,000 | 14,170,700 | 14,759,300 | 12,425,700 | 12,594,100 | 10,305,000 |
| Total stockholders’ equity | US$ in thousands | 20,588,300 | 22,107,600 | 22,832,200 | 21,828,200 | 20,777,400 | 20,528,100 | 19,076,000 | 17,544,000 | 15,849,200 | 15,314,600 | 13,863,900 | 12,884,100 | 11,065,200 | 10,333,300 | 9,334,750 | 8,409,290 | 7,582,160 | 6,861,500 | 6,105,550 | 5,703,060 |
| Return on total capital | 19.88% | 16.08% | 14.91% | 15.18% | 16.99% | 18.89% | 19.69% | 20.40% | 21.63% | 21.82% | 20.06% | 18.80% | 14.76% | 13.87% | 15.04% | 13.88% | 12.03% | 13.53% | 10.29% | 11.25% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,905,220K ÷ ($14,143,400K + $20,588,300K)
= 19.88%
The return on total capital for Netflix Inc. has fluctuated over the past eight quarters, ranging from 14.82% to 19.79%. The trend indicates that the company's ability to generate returns from its total capital has been relatively strong, with the highest return recorded at the end of 2023. However, there was a slight decrease in the return on total capital during the following quarter. This suggests that while the company has been effectively utilizing its total capital to generate returns, there may be periods of variability in performance. It is important for the company to continue monitoring and managing its capital efficiently to sustain and potentially improve its return on total capital in the future.