Netflix Inc (NFLX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 48,732,000 | 48,594,800 | 44,584,700 | 39,280,400 | 33,975,700 |
| Total stockholders’ equity | US$ in thousands | 20,588,300 | 20,777,400 | 15,849,200 | 11,065,200 | 7,582,160 |
| Financial leverage ratio | 2.37 | 2.34 | 2.81 | 3.55 | 4.48 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $48,732,000K ÷ $20,588,300K
= 2.37
The financial leverage ratio of Netflix Inc. has shown a decreasing trend from 4.48 in 2019 to 2.37 in 2023. This indicates a reduction in the company's reliance on debt to finance its operations and assets. A lower financial leverage ratio suggests a lower risk of financial distress and increased financial stability. The decreasing trend may reflect the company's efforts to improve its capital structure by reducing debt and increasing its equity base. This trend is favorable as it indicates a healthier balance between debt and equity, which can enhance the company's financial flexibility and resilience.