Netflix Inc (NFLX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.28 | 0.28 | 0.28 | 0.30 | 0.29 | 0.31 | 0.32 | 0.33 | 0.35 | 0.36 | 0.37 | 0.40 | 0.40 | 0.41 | 0.40 | 0.43 | 0.40 | 0.42 | 0.38 |
| Debt-to-capital ratio | 0.41 | 0.39 | 0.38 | 0.39 | 0.41 | 0.40 | 0.43 | 0.45 | 0.48 | 0.49 | 0.52 | 0.54 | 0.59 | 0.60 | 0.62 | 0.63 | 0.66 | 0.64 | 0.67 | 0.64 |
| Debt-to-equity ratio | 0.69 | 0.63 | 0.62 | 0.64 | 0.69 | 0.68 | 0.75 | 0.83 | 0.93 | 0.97 | 1.08 | 1.15 | 1.43 | 1.50 | 1.64 | 1.69 | 1.95 | 1.81 | 2.06 | 1.81 |
| 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 |
The solvency ratios of Netflix Inc. indicate its ability to meet its long-term financial obligations and the level of financial risk associated with its capital structure.
The debt-to-assets ratio has been relatively stable around 0.29-0.30, indicating that approximately 29-30% of the company's assets are financed by debt.
The debt-to-capital ratio has also remained steady around 0.39-0.41, suggesting that debt represents around 39-41% of the company's total capital, which includes both debt and equity.
The debt-to-equity ratio declined from 0.83 in March 2022 to 0.71 in December 2023, indicating a decrease in the proportion of total liabilities to equity. This signifies that the company has reduced its dependence on debt financing in relation to equity.
The financial leverage ratio, which measures the proportion of the company's assets that are financed by debt, has shown a declining trend from 2.58 in March 2022 to 2.24 in September 2023, indicating a lower reliance on debt to finance assets.
Overall, these solvency ratios suggest that Netflix Inc. is managing its long-term financial obligations effectively and has improved its capital structure by decreasing its reliance on debt financing in relation to equity.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 4.29 | 4.52 | 3.66 | 3.79 |
The interest coverage ratio for Netflix Inc. has shown a consistent trend in the past quarters. The ratio has remained above 7.5 in all the quarters, indicating the company's ability to meet its interest obligations from its operating income. The interest coverage ratio peaked at 9.94 in December 2023, reflecting a strong ability to cover interest expenses. This trend suggests that Netflix Inc. has been effectively managing its interest payments in relation to its operating profits, which can be seen as a positive indicator of the company's financial health and stability.