Netflix Inc (NFLX)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 53,630,400 48,732,000 48,594,800 44,584,700 39,280,400
Total stockholders’ equity US$ in thousands 24,743,600 20,588,300 20,777,400 15,849,200 11,065,200
Financial leverage ratio 2.17 2.37 2.34 2.81 3.55

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $53,630,400K ÷ $24,743,600K
= 2.17

The financial leverage ratio for Netflix Inc has shown a declining trend from 3.55 in December 2020 to 2.17 in December 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests that Netflix has a stronger equity position relative to its debt, which could indicate improved financial stability and lower financial risk. The decreasing trend in the leverage ratio is a positive sign for investors and creditors as it signifies a more conservative capital structure.


See also:

Netflix Inc Financial Leverage