Netflix Inc (NFLX)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 13,798,400 | 14,143,400 | 14,353,100 | 14,693,100 | 15,809,100 |
| Total assets | US$ in thousands | 53,630,400 | 48,732,000 | 48,594,800 | 44,584,700 | 39,280,400 |
| Debt-to-assets ratio | 0.26 | 0.29 | 0.30 | 0.33 | 0.40 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $13,798,400K ÷ $53,630,400K
= 0.26
The debt-to-assets ratio for Netflix Inc has shown a declining trend over the past five years, decreasing from 0.40 in December 2020 to 0.26 in December 2024. This indicates that the company has been effectively managing its debt levels relative to its total assets, becoming more efficient in utilizing its assets to generate revenue and cash flow. A lower debt-to-assets ratio suggests a stronger financial position and lower risk of financial distress, as the company relies less on debt financing. This trend reflects positively on Netflix's overall financial health and creditworthiness, positioning it well for future growth and investment opportunities.