Netflix Inc (NFLX)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 20,588,300 | 20,777,400 | 15,849,200 | 11,065,200 | 7,582,160 |
| Debt-to-equity ratio | 0.69 | 0.69 | 0.93 | 1.43 | 1.95 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $14,143,400K ÷ $20,588,300K
= 0.69
The debt-to-equity ratio of Netflix Inc. has shown a declining trend over the past five years, indicating a relatively lower reliance on debt financing compared to equity. In 2019, the ratio stood at 1.95, reflecting a higher proportion of debt in the company's capital structure, which subsequently decreased to 1.47 in 2020, 0.97 in 2021, and further to 0.69 in 2022. This suggests a consistent effort to reduce debt and strengthen the equity position. The most recent ratio as of December 31, 2023, stands at 0.71, reaffirming the company's prudent management of its financial leverage. The declining trend in the debt-to-equity ratio may indicate improved financial stability and reduced risk associated with debt obligations.