Netflix Inc (NFLX)

Debt-to-equity 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 stockholders’ equity US$ in thousands 24,743,600 20,588,300 20,777,400 15,849,200 11,065,200
Debt-to-equity ratio 0.56 0.69 0.69 0.93 1.43

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $13,798,400K ÷ $24,743,600K
= 0.56

The debt-to-equity ratio of Netflix Inc has shown a declining trend from 1.43 in December 2020 to 0.56 in December 2024. This indicates that the company has been gradually reducing its reliance on debt financing in comparison to equity over the years. A decreasing debt-to-equity ratio can suggest improved financial stability and lower risk as the company is relying less on borrowed funds to finance its operations and growth. It implies that Netflix's financial structure has been strengthening with a gradual decrease in debt relative to equity over the years, which can be viewed positively by investors and creditors.


See also:

Netflix Inc Debt to Equity