Netflix Inc (NFLX)

Interest coverage

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 10,417,600 6,905,230 5,970,140 6,605,720 3,966,850
Interest expense US$ in thousands 718,733 699,826 706,212 765,620 767,499
Interest coverage 14.49 9.87 8.45 8.63 5.17

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $10,417,600K ÷ $718,733K
= 14.49

Netflix Inc's interest coverage ratio has been on an upward trend over the past few years, indicating the company's improving ability to meet its interest obligations from its operating income. As of December 31, 2020, the interest coverage ratio was 5.17, which increased to 8.63 by December 31, 2021. Subsequently, the ratio remained relatively stable around the range of 8 to 9 in the following years, reaching 8.45 by December 31, 2022, and 9.87 by December 31, 2023. Notably, by December 31, 2024, the interest coverage ratio significantly improved to 14.49, reflecting Netflix's strengthened capacity to cover its interest expenses with its earnings. This consistent enhancement in the interest coverage ratio suggests that Netflix has been effectively managing its interest costs relative to its operating income, which could signify a positive financial health and sustainability for the company.


See also:

Netflix Inc Interest Coverage