Netflix Inc (NFLX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 14,143,400 | 14,353,100 | 14,693,100 | 15,809,100 | 14,759,300 |
| Total assets | US$ in thousands | 48,732,000 | 48,594,800 | 44,584,700 | 39,280,400 | 33,975,700 |
| Debt-to-assets ratio | 0.29 | 0.30 | 0.33 | 0.40 | 0.43 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $14,143,400K ÷ $48,732,000K
= 0.29
The debt-to-assets ratio for Netflix Inc. has shown a decreasing trend over the past five years, indicating a more conservative capital structure. In 2023 and 2022, the ratio remained steady at 0.30, signifying that the company financed 30% of its assets through debt. This indicates a stable level of leverage. The decrease from 2021 to 2022 suggests an improvement in the company's ability to finance its assets. Furthermore, the gradual decline from 2020 to 2023 reflects a positive trend in the company's financial stability and risk management. This may indicate that Netflix has been able to manage its debt levels effectively while maintaining its asset base, which could contribute to its overall financial health and ability to weather economic downturns.