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.