Netflix Inc (NFLX)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 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 |
| Debt-to-assets ratio | 0.29 | 0.28 | 0.28 | 0.28 | 0.30 | 0.29 | 0.31 | 0.32 | 0.33 | 0.35 | 0.36 | 0.37 | 0.40 | 0.40 | 0.41 | 0.40 | 0.43 | 0.40 | 0.42 | 0.38 |
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 of Netflix Inc. has been relatively stable over the past several quarters, ranging from 0.28 to 0.32. This ratio represents the proportion of the company's assets that are financed by debt. A lower ratio indicates that a smaller portion of the company's assets is financed by debt, which can be seen as a positive sign of financial stability and lower risk.
Netflix's decreasing debt-to-assets ratio may suggest that the company has been effectively managing its debt levels in relation to its asset base. This could indicate a conservative approach to financing and a strong ability to generate internal funds to support its operations and growth initiatives.
It's important to note that while a low debt-to-assets ratio can be positive, it may also signal underutilization of debt financing, which, depending on the company's specific circumstances, could potentially limit its growth opportunities. Therefore, a comprehensive analysis of the company's overall financial position and future growth prospects would be crucial for a complete understanding of the implications of its debt-to-assets ratio.