Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Netflix Inc., balance sheet: property, plant and equipment

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Land 88,429 85,005 82,381 50,700 6,125
Buildings 150,736 52,106 48,123 42,717 33,141
Leasehold improvements 1,032,492 1,040,570 863,342 524,537 354,999
Furniture and fixtures 144,737 153,682 139,809 110,185 87,465
Information technology 414,092 442,681 380,452 283,014 243,565
Corporate aircraft 99,175 115,578 110,978 110,629 108,995
Machinery and equipment 10,334 26,821 32,426 34,633 46,415
Capital work-in-progress 406,492 235,555 282,248 298,558 100,521
Property and equipment, gross 2,346,487 2,151,998 1,939,759 1,454,973 981,226
Accumulated depreciation (855,043) (753,741) (616,306) (494,790) (416,005)
Property and equipment, net 1,491,444 1,398,257 1,323,453 960,183 565,221

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Property and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Netflix Inc. property and equipment, gross increased from 2021 to 2022 and from 2022 to 2023.
Property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Netflix Inc. property and equipment, net increased from 2021 to 2022 and from 2022 to 2023.

Asset Age Ratios (Summary)

Netflix Inc., asset age ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Average age ratio 37.87% 36.47% 33.18% 35.23% 42.66%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Netflix Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Age

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Accumulated depreciation 855,043 753,741 616,306 494,790 416,005
Property and equipment, gross 2,346,487 2,151,998 1,939,759 1,454,973 981,226
Land 88,429 85,005 82,381 50,700 6,125
Asset Age Ratio
Average age1 37.87% 36.47% 33.18% 35.23% 42.66%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × 855,043 ÷ (2,346,48788,429) = 37.87%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Netflix Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.