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.