Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Netflix Inc., solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 0.71 0.69 0.97 1.47 1.95
Debt to equity (including operating lease liability) 0.82 0.81 1.14 1.67 2.16
Debt to capital 0.41 0.41 0.49 0.60 0.66
Debt to capital (including operating lease liability) 0.45 0.45 0.53 0.63 0.68
Debt to assets 0.30 0.30 0.35 0.42 0.43
Debt to assets (including operating lease liability) 0.35 0.35 0.41 0.47 0.48
Financial leverage 2.37 2.34 2.81 3.55 4.48
Coverage Ratios
Interest coverage 9.87 8.45 8.63 5.17 4.29
Fixed charge coverage 5.64 5.00 5.46 3.65 2.92

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Netflix Inc. debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Netflix Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Netflix Inc. debt to capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Netflix Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Netflix Inc. debt to assets ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Netflix Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Netflix Inc. financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Netflix Inc. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Netflix Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Debt to Equity

Netflix Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Short-term debt 399,844 699,823 499,878
Long-term debt 14,143,417 14,353,076 14,693,072 15,809,095 14,759,260
Total debt 14,543,261 14,353,076 15,392,895 16,308,973 14,759,260
 
Stockholders’ equity 20,588,313 20,777,401 15,849,248 11,065,240 7,582,157
Solvency Ratio
Debt to equity1 0.71 0.69 0.97 1.47 1.95
Benchmarks
Debt to Equity, Competitors2
Alphabet Inc. 0.05 0.06 0.06 0.07 0.02
Comcast Corp. 1.17 1.17 0.99 1.15 1.24
Meta Platforms Inc. 0.12 0.08 0.00 0.00 0.00
Walt Disney Co. 0.47 0.51 0.62 0.71 0.53
Debt to Equity, Sector
Media & Entertainment 0.30 0.32 0.31 0.36 0.35
Debt to Equity, Industry
Communication Services 0.62 0.65 0.65 0.67 0.62

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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 14,543,261 ÷ 20,588,313 = 0.71

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Netflix Inc. debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Debt to Equity (including Operating Lease Liability)

Netflix Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Short-term debt 399,844 699,823 499,878
Long-term debt 14,143,417 14,353,076 14,693,072 15,809,095 14,759,260
Total debt 14,543,261 14,353,076 15,392,895 16,308,973 14,759,260
Current operating lease liabilities (included in Accrued expenses and other liabilities) 383,312 355,985 315,189 256,222 190,622
Non-current operating lease liabilities (included in Other non-current liabilities) 2,046,801 2,222,503 2,408,486 1,945,631 1,422,612
Total debt (including operating lease liability) 16,973,374 16,931,564 18,116,570 18,510,826 16,372,494
 
Stockholders’ equity 20,588,313 20,777,401 15,849,248 11,065,240 7,582,157
Solvency Ratio
Debt to equity (including operating lease liability)1 0.82 0.81 1.14 1.67 2.16
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.11 0.12 0.11 0.13 0.08
Comcast Corp. 1.25 1.26 1.06 1.20 1.29
Meta Platforms Inc. 0.25 0.22 0.12 0.09 0.11
Walt Disney Co. 0.51 0.55 0.66 0.75 0.53
Debt to Equity (including Operating Lease Liability), Sector
Media & Entertainment 0.37 0.39 0.38 0.43 0.41
Debt to Equity (including Operating Lease Liability), Industry
Communication Services 0.76 0.80 0.79 0.80 0.74

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).

1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 16,973,374 ÷ 20,588,313 = 0.82

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Netflix Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Debt to Capital

Netflix Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Short-term debt 399,844 699,823 499,878
Long-term debt 14,143,417 14,353,076 14,693,072 15,809,095 14,759,260
Total debt 14,543,261 14,353,076 15,392,895 16,308,973 14,759,260
Stockholders’ equity 20,588,313 20,777,401 15,849,248 11,065,240 7,582,157
Total capital 35,131,574 35,130,477 31,242,143 27,374,213 22,341,417
Solvency Ratio
Debt to capital1 0.41 0.41 0.49 0.60 0.66
Benchmarks
Debt to Capital, Competitors2
Alphabet Inc. 0.05 0.06 0.06 0.06 0.02
Comcast Corp. 0.54 0.54 0.50 0.53 0.55
Meta Platforms Inc. 0.11 0.08 0.00 0.00 0.00
Walt Disney Co. 0.32 0.34 0.38 0.41 0.35
Debt to Capital, Sector
Media & Entertainment 0.23 0.24 0.24 0.27 0.26
Debt to Capital, Industry
Communication Services 0.38 0.39 0.40 0.40 0.38

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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,543,261 ÷ 35,131,574 = 0.41

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Netflix Inc. debt to capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Debt to Capital (including Operating Lease Liability)

Netflix Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Short-term debt 399,844 699,823 499,878
Long-term debt 14,143,417 14,353,076 14,693,072 15,809,095 14,759,260
Total debt 14,543,261 14,353,076 15,392,895 16,308,973 14,759,260
Current operating lease liabilities (included in Accrued expenses and other liabilities) 383,312 355,985 315,189 256,222 190,622
Non-current operating lease liabilities (included in Other non-current liabilities) 2,046,801 2,222,503 2,408,486 1,945,631 1,422,612
Total debt (including operating lease liability) 16,973,374 16,931,564 18,116,570 18,510,826 16,372,494
Stockholders’ equity 20,588,313 20,777,401 15,849,248 11,065,240 7,582,157
Total capital (including operating lease liability) 37,561,687 37,708,965 33,965,818 29,576,066 23,954,651
Solvency Ratio
Debt to capital (including operating lease liability)1 0.45 0.45 0.53 0.63 0.68
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.10 0.10 0.10 0.11 0.07
Comcast Corp. 0.56 0.56 0.52 0.55 0.56
Meta Platforms Inc. 0.20 0.18 0.10 0.08 0.10
Walt Disney Co. 0.34 0.35 0.40 0.43 0.35
Debt to Capital (including Operating Lease Liability), Sector
Media & Entertainment 0.27 0.28 0.28 0.30 0.29
Debt to Capital (including Operating Lease Liability), Industry
Communication Services 0.43 0.44 0.44 0.44 0.43

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).

1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 16,973,374 ÷ 37,561,687 = 0.45

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Netflix Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Debt to Assets

Netflix Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Short-term debt 399,844 699,823 499,878
Long-term debt 14,143,417 14,353,076 14,693,072 15,809,095 14,759,260
Total debt 14,543,261 14,353,076 15,392,895 16,308,973 14,759,260
 
Total assets 48,731,992 48,594,768 44,584,663 39,280,359 33,975,712
Solvency Ratio
Debt to assets1 0.30 0.30 0.35 0.42 0.43
Benchmarks
Debt to Assets, Competitors2
Alphabet Inc. 0.04 0.04 0.04 0.05 0.02
Comcast Corp. 0.37 0.37 0.34 0.38 0.39
Meta Platforms Inc. 0.08 0.06 0.00 0.00 0.00
Walt Disney Co. 0.23 0.24 0.27 0.29 0.24
Debt to Assets, Sector
Media & Entertainment 0.17 0.17 0.17 0.20 0.19
Debt to Assets, Industry
Communication Services 0.26 0.27 0.27 0.27 0.26

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).

1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 14,543,261 ÷ 48,731,992 = 0.30

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Netflix Inc. debt to assets ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Debt to Assets (including Operating Lease Liability)

Netflix Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Short-term debt 399,844 699,823 499,878
Long-term debt 14,143,417 14,353,076 14,693,072 15,809,095 14,759,260
Total debt 14,543,261 14,353,076 15,392,895 16,308,973 14,759,260
Current operating lease liabilities (included in Accrued expenses and other liabilities) 383,312 355,985 315,189 256,222 190,622
Non-current operating lease liabilities (included in Other non-current liabilities) 2,046,801 2,222,503 2,408,486 1,945,631 1,422,612
Total debt (including operating lease liability) 16,973,374 16,931,564 18,116,570 18,510,826 16,372,494
 
Total assets 48,731,992 48,594,768 44,584,663 39,280,359 33,975,712
Solvency Ratio
Debt to assets (including operating lease liability)1 0.35 0.35 0.41 0.47 0.48
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.07 0.08 0.08 0.09 0.06
Comcast Corp. 0.39 0.39 0.37 0.40 0.41
Meta Platforms Inc. 0.17 0.15 0.09 0.07 0.08
Walt Disney Co. 0.25 0.26 0.29 0.31 0.24
Debt to Assets (including Operating Lease Liability), Sector
Media & Entertainment 0.21 0.22 0.21 0.23 0.22
Debt to Assets (including Operating Lease Liability), Industry
Communication Services 0.32 0.33 0.33 0.33 0.31

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).

1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 16,973,374 ÷ 48,731,992 = 0.35

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Netflix Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Financial Leverage

Netflix Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Total assets 48,731,992 48,594,768 44,584,663 39,280,359 33,975,712
Stockholders’ equity 20,588,313 20,777,401 15,849,248 11,065,240 7,582,157
Solvency Ratio
Financial leverage1 2.37 2.34 2.81 3.55 4.48
Benchmarks
Financial Leverage, Competitors2
Alphabet Inc. 1.42 1.43 1.43 1.44 1.37
Comcast Corp. 3.20 3.18 2.87 3.03 3.18
Meta Platforms Inc. 1.50 1.48 1.33 1.24 1.32
Walt Disney Co. 2.07 2.14 2.30 2.41 2.18
Financial Leverage, Sector
Media & Entertainment 1.80 1.83 1.82 1.85 1.87
Financial Leverage, Industry
Communication Services 2.39 2.45 2.43 2.45 2.42

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).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 48,731,992 ÷ 20,588,313 = 2.37

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Netflix Inc. financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Interest Coverage

Netflix Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net income 5,407,990 4,491,924 5,116,228 2,761,395 1,866,916
Add: Income tax expense 797,415 772,005 723,875 437,954 195,315
Add: Interest expense 699,826 706,212 765,620 767,499 626,023
Earnings before interest and tax (EBIT) 6,905,231 5,970,141 6,605,723 3,966,848 2,688,254
Solvency Ratio
Interest coverage1 9.87 8.45 8.63 5.17 4.29
Benchmarks
Interest Coverage, Competitors2
Alphabet Inc. 279.30 200.80 263.24 357.16 397.25
Comcast Corp. 6.01 3.38 5.46 4.07 4.72
Meta Platforms Inc. 107.34 164.74 3,153.27 2,371.00 1,241.60
Walt Disney Co. 3.42 4.41 2.66 -0.06 12.19
Interest Coverage, Sector
Media & Entertainment 22.91 18.95 24.80 14.53 15.86
Interest Coverage, Industry
Communication Services 10.21 8.50 11.90 6.51 7.88

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).

1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,905,231 ÷ 699,826 = 9.87

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Netflix Inc. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Fixed Charge Coverage

Netflix Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net income 5,407,990 4,491,924 5,116,228 2,761,395 1,866,916
Add: Income tax expense 797,415 772,005 723,875 437,954 195,315
Add: Interest expense 699,826 706,212 765,620 767,499 626,023
Earnings before interest and tax (EBIT) 6,905,231 5,970,141 6,605,723 3,966,848 2,688,254
Add: Operating lease costs 638,678 608,428 542,570 440,511 447,889
Earnings before fixed charges and tax 7,543,909 6,578,569 7,148,293 4,407,359 3,136,143
 
Interest expense 699,826 706,212 765,620 767,499 626,023
Operating lease costs 638,678 608,428 542,570 440,511 447,889
Fixed charges 1,338,504 1,314,640 1,308,190 1,208,010 1,073,912
Solvency Ratio
Fixed charge coverage1 5.64 5.00 5.46 3.65 2.92
Benchmarks
Fixed Charge Coverage, Competitors2
Alphabet Inc. 18.67 18.42 25.06 16.92 17.10
Comcast Corp. 4.87 2.82 4.48 3.47 4.00
Meta Platforms Inc. 19.69 15.18 31.41 24.62 22.41
Walt Disney Co. 2.71 3.25 2.07 0.32 6.94
Fixed Charge Coverage, Sector
Media & Entertainment 10.79 9.06 12.40 7.98 8.67
Fixed Charge Coverage, Industry
Communication Services 5.36 4.25 5.95 3.73 4.58

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).

1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,543,909 ÷ 1,338,504 = 5.64

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Netflix Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.