Netflix Inc (NFLX)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 10,630,280 9,680,870 8,877,700 8,050,000 6,905,220 5,791,799 5,501,609 5,445,979 5,970,139 6,500,482 6,557,452 6,544,052 6,605,722 6,569,043 5,776,193 5,215,833 3,966,846 3,590,377 3,704,817 3,133,016
Interest expense (ttm) US$ in thousands 718,733 701,342 692,075 698,901 699,826 695,217 692,229 692,872 706,212 725,038 742,892 758,759 765,620 773,377 780,027 777,856 767,499 748,114 711,695 674,577
Interest coverage 14.79 13.80 12.83 11.52 9.87 8.33 7.95 7.86 8.45 8.97 8.83 8.62 8.63 8.49 7.41 6.71 5.17 4.80 5.21 4.64

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $10,630,280K ÷ $718,733K
= 14.79

Based on the provided data, the interest coverage ratio of Netflix Inc has been improving steadily over the past several periods, showing a positive trend.

The interest coverage ratio is a measure of a company's ability to cover its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Initially, in March 31, 2020, Netflix's interest coverage ratio stood at 4.64, indicating that the company's operating income was 4.64 times its interest expense for that period. Over time, the interest coverage ratio increased consistently, reaching a peak of 14.79 on December 31, 2024, which reflects a significant improvement in Netflix's ability to cover its interest payments.

Overall, the upward trend in the interest coverage ratio suggests that Netflix has been effectively managing its debt obligations, generating sufficient income to comfortably cover its interest expenses. This positive trend indicates the company's financial stability and ability to service its debt effectively.


See also:

Netflix Inc Interest Coverage (Quarterly Data)