Netflix Inc (NFLX)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 53,630,400 | 52,281,800 | 49,098,900 | 48,827,700 | 48,732,000 | 49,501,800 | 50,817,500 | 49,490,300 | 48,594,800 | 47,562,200 | 46,350,900 | 45,330,900 | 44,584,700 | 42,739,900 | 40,971,000 | 40,123,000 | 39,280,400 | 38,622,500 | 37,175,300 | 35,059,900 |
| Total stockholders’ equity | US$ in thousands | 24,743,600 | 22,720,700 | 22,112,700 | 21,365,400 | 20,588,300 | 22,107,600 | 22,832,200 | 21,828,200 | 20,777,400 | 20,528,100 | 19,076,000 | 17,544,000 | 15,849,200 | 15,314,600 | 13,863,900 | 12,884,100 | 11,065,200 | 10,333,300 | 9,334,750 | 8,409,290 |
| Financial leverage ratio | 2.17 | 2.30 | 2.22 | 2.29 | 2.37 | 2.24 | 2.23 | 2.27 | 2.34 | 2.32 | 2.43 | 2.58 | 2.81 | 2.79 | 2.96 | 3.11 | 3.55 | 3.74 | 3.98 | 4.17 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $53,630,400K ÷ $24,743,600K
= 2.17
The financial leverage ratio of Netflix Inc has shown a decreasing trend over the analyzed period, reflecting a decrease in the company's reliance on debt to fund its operations and investments. The ratio decreased from 4.17 as of March 31, 2020, to 2.17 as of December 31, 2024. This indicates that the company has been progressively reducing its debt levels relative to its equity. A decreasing financial leverage ratio is generally viewed positively as it signifies lower default risk and increased financial stability. This trend suggests that Netflix Inc is effectively managing its capital structure and potentially improving its overall financial health.