Netflix Inc (NFLX)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 33,975,700 | 30,941,700 | 30,171,300 | 27,218,600 |
| Total stockholders’ equity | US$ in thousands | 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 | 7,582,160 | 6,861,500 | 6,105,550 | 5,703,060 |
| Financial leverage ratio | 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 | 4.48 | 4.51 | 4.94 | 4.77 |
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 fluctuated over the past eight quarters, ranging from 2.23 to 2.58. This ratio indicates the level of the company's debt relative to its equity. A higher financial leverage ratio suggests a higher proportion of debt in the company's capital structure, which can magnify the impact of financial risk and potential returns.
The decreasing trend in the financial leverage ratio from the first quarter of 2022 to the third quarter of 2023 implies a potential reduction in the company's reliance on debt financing or an increase in equity. This trend may indicate a strategic shift towards a more conservative capital structure, potentially reducing financial risk. However, the moderate fluctuation in the ratio during this period also suggests some variability in the company's capital structure and financial risk profile.
It is important for stakeholders to closely monitor changes in the financial leverage ratio to understand the company's capacity to meet its financial obligations and the potential impact on its overall financial health and stability.