Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Analysis of Debt
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Netflix Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
Based on: 10-K (reporting date: 2024-12-31), 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).
The analysis of the financial data reveals several notable trends in the composition of liabilities and stockholders’ equity over the five-year period.
- Current Liabilities
- Current liabilities as a percentage of total liabilities and stockholders’ equity experienced a general decline from 19.87% in 2020 to 16.32% in 2022. However, this was followed by an increase back to 20.05% by 2024. Within current liabilities, current content liabilities steadily decreased from 11.28% to 8.19%, indicating a reduction in short-term obligations related to content. Conversely, accrued expenses and other liabilities rose from 2.81% to 4.02%, suggesting growth in operational or accrued costs. Accounts payable showed minor fluctuations, ultimately increasing to 1.68% in 2024. Deferred revenue remained relatively stable around 2.6-2.96% throughout the period. Short-term debt, after missing data in 2022, showed volatility with a sharp increase to 3.33% in 2024 from lower levels in prior years.
- Non-current Liabilities
- Non-current liabilities exhibited a substantial downward trend, decreasing from 51.96% to 33.81%. Long-term debt declined notably from 40.25% to 25.73%, reflecting a strategy of deleveraging or debt repayment. Non-current content liabilities similarly reduced from 6.67% to 3.32%. Other non-current liabilities remained fairly consistent, slightly decreasing to 4.76% by 2024. The overall reduction in non-current liabilities contributed to the drop in total liabilities from 71.83% to 53.86% of total liabilities and stockholders’ equity.
- Stockholders’ Equity
- Stockholders’ equity improved steadily, increasing from 28.17% in 2020 to 46.14% in 2024. This was driven chiefly by a rise in retained earnings, which nearly tripled from 19.28% to 58.36% of total liabilities and stockholders’ equity, signifying sustained profitability or accumulation of earnings. Common stock increased moderately from 8.78% to 11.66%, indicating possible equity issuances or valuation effects. Treasury stock showed a marked increase in negative value from -1.85% to -24.56%, implying substantial stock repurchases or capital reduction activities. Accumulated other comprehensive income (loss) fluctuated with slight negative values mid-period but recovered to a positive 0.68% by 2024.
- Overall Capital Structure
- The overall capital structure shifted toward greater equity financing, with total liabilities declining from nearly 72% to below 54%. This trend suggests a strengthening balance sheet and potentially reduced financial risk. The increase in treasury stock as a negative component of equity highlights aggressive share repurchase activity, which, combined with rising retained earnings, indicates active capital management strategies aimed at boosting shareholder value.