Netflix Inc (NFLX)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.41 | 0.39 | 0.38 | 0.39 | 0.41 | 0.40 | 0.43 | 0.45 | 0.48 | 0.49 | 0.52 | 0.54 | 0.59 | 0.60 | 0.62 | 0.63 | 0.66 | 0.64 | 0.67 | 0.64 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $14,143,400K ÷ ($14,143,400K + $20,588,300K)
= 0.41
The debt-to-capital ratio of Netflix Inc. has been relatively stable over the past eight quarters, ranging from 0.39 to 0.45. This ratio measures the proportion of a company's capital that is financed by debt, and a lower ratio indicates lower financial leverage and a lower risk of insolvency.
The trend indicates that the company has been managing its debt and capital structure effectively. However, the slight increase in the ratio from 0.39 to 0.45 from March 31, 2022, to March 31, 2022, suggests a potential increase in reliance on debt financing compared to other sources of capital.
Investors and analysts should continue to monitor the debt-to-capital ratio to assess Netflix's ability to manage its debt and overall financial risk.