Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Netflix Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency profile demonstrates a consistent trend of deleveraging and improved financial stability from March 2022 through September 2026. A systematic reduction in debt reliance across multiple metrics is evident, complemented by a substantial increase in the capacity to service interest obligations.
- Debt-to-Equity and Capital Structure
- A sustained downward trend is observed in the debt-to-equity ratio, which declined from 0.83 in March 2022 to 0.52 by September 2026, reaching a period low of 0.46 in March 2026. This trend is mirrored in the debt-to-capital ratio, which decreased from 0.45 to 0.34 over the same period, and the debt-to-assets ratio, which fell from 0.32 to 0.26. These movements indicate a strategic shift toward a more equity-funded capital structure and a lower overall debt burden relative to total assets.
- Financial Leverage
- Financial leverage exhibits a general decline, moving from 2.58 in March 2022 to 2.00 in September 2026. While there was a temporary increase peaking at 2.37 in December 2023, the subsequent trend remained downward, suggesting a reduction in the use of borrowed funds to amplify asset returns.
- Interest Coverage and Debt Servicing
- The most significant improvement is found in the interest coverage ratio, which grew from 8.62 in March 2022 to 21.66 by September 2026. This growth was particularly aggressive starting in March 2024, where the ratio climbed from 11.52 to over 21.00. This trajectory indicates a vastly strengthened ability to cover interest expenses from operating profits, significantly reducing the risk of default.
In summary, the combination of falling leverage ratios and a sharply rising interest coverage ratio reflects a strengthening solvency position, characterized by reduced financial risk and increased operational headroom.
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Debt to Equity
Netflix Inc., debt to equity calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Short-term debt | 2,474,796) | 2,483,758) | 999,185) | 998,865) | —) | —) | 1,005,881) | 1,784,453) | 1,820,396) | 1,800,041) | 798,936) | 399,844) | 399,614) | 399,387) | 399,163) | —) | —) | —) | —) | ||||||
| Long-term debt | 12,657,598) | 11,825,548) | 13,361,331) | 13,463,971) | 14,463,020) | 14,453,206) | 14,011,037) | 13,798,351) | 14,160,932) | 12,180,024) | 13,217,038) | 14,143,417) | 13,900,754) | 14,070,151) | 14,037,965) | 14,353,076) | 13,888,117) | 14,233,303) | 14,534,561) | ||||||
| Total debt | 15,132,394) | 14,309,306) | 14,360,516) | 14,462,836) | 14,463,020) | 14,453,206) | 15,016,918) | 15,582,804) | 15,981,328) | 13,980,065) | 14,015,974) | 14,543,261) | 14,300,368) | 14,469,538) | 14,437,128) | 14,353,076) | 13,888,117) | 14,233,303) | 14,534,561) | ||||||
| Stockholders’ equity | 29,286,253) | 30,152,052) | 31,126,399) | 26,615,488) | 25,954,035) | 24,951,899) | 24,028,073) | 24,743,567) | 22,720,736) | 22,112,693) | 21,365,410) | 20,588,313) | 22,107,627) | 22,832,215) | 21,828,196) | 20,777,401) | 20,528,141) | 19,075,974) | 17,544,039) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 0.52 | 0.47 | 0.46 | 0.54 | 0.56 | 0.58 | 0.62 | 0.63 | 0.70 | 0.63 | 0.66 | 0.71 | 0.65 | 0.63 | 0.66 | 0.69 | 0.68 | 0.75 | 0.83 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 0.18 | 0.15 | 0.16 | 0.11 | 0.06 | 0.07 | 0.03 | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.06 | ||||||
| Comcast Corp. | 0.94 | 1.01 | 1.07 | 1.02 | 1.02 | 1.05 | 1.14 | 1.16 | 1.18 | 1.18 | 1.17 | 1.17 | 1.18 | 1.16 | 1.16 | 1.17 | 1.15 | 1.02 | 1.00 | ||||||
| Meta Platforms Inc. | 0.30 | 0.32 | 0.24 | 0.27 | 0.15 | 0.15 | 0.16 | 0.16 | 0.18 | 0.12 | 0.12 | 0.12 | 0.13 | 0.14 | 0.08 | 0.08 | 0.08 | 0.00 | 0.00 | ||||||
| Walt Disney Co. | 0.42 | 0.44 | 0.43 | 0.38 | 0.39 | 0.41 | 0.44 | 0.45 | 0.47 | 0.47 | 0.47 | 0.47 | 0.48 | 0.50 | 0.50 | 0.51 | 0.56 | 0.57 | 0.60 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 15,132,394 ÷ 29,286,253 = 0.52
2 Click competitor name to see calculations.
The overall solvency profile demonstrates a consistent trend toward deleveraging and increased financial stability. The Debt to Equity ratio decreased from 0.83 in the first quarter of 2022 to 0.52 by the third quarter of 2026, signaling a reduced reliance on borrowed funds relative to shareholder investments.
- Debt Obligations
- Total debt remained relatively stable throughout the period, oscillating primarily between 13.8 billion and 15.9 billion US dollars. A notable peak occurred in September 2024, where debt reached 15.98 billion US dollars, though levels subsequently normalized toward the 14.3 billion to 15.1 billion US dollar range in the following periods.
- Equity Expansion
- A significant and sustained increase in stockholders' equity is observed, rising from 17.54 billion US dollars in March 2022 to 29.29 billion US dollars by September 2026. The most substantial growth was recorded between December 2025 and March 2026, where equity increased from 26.62 billion to 31.13 billion US dollars.
- Leverage Dynamics
- The downward trajectory of the Debt to Equity ratio is primarily driven by the expansion of the equity base rather than a reduction in absolute debt. While the ratio experienced periodic fluctuations—specifically increasing to 0.71 in December 2023 and 0.70 in September 2024—the long-term trend indicates a strategic shift toward a more conservative capital structure and improved solvency.
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Debt to Capital
Netflix Inc., debt to capital calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Short-term debt | 2,474,796) | 2,483,758) | 999,185) | 998,865) | —) | —) | 1,005,881) | 1,784,453) | 1,820,396) | 1,800,041) | 798,936) | 399,844) | 399,614) | 399,387) | 399,163) | —) | —) | —) | —) | ||||||
| Long-term debt | 12,657,598) | 11,825,548) | 13,361,331) | 13,463,971) | 14,463,020) | 14,453,206) | 14,011,037) | 13,798,351) | 14,160,932) | 12,180,024) | 13,217,038) | 14,143,417) | 13,900,754) | 14,070,151) | 14,037,965) | 14,353,076) | 13,888,117) | 14,233,303) | 14,534,561) | ||||||
| Total debt | 15,132,394) | 14,309,306) | 14,360,516) | 14,462,836) | 14,463,020) | 14,453,206) | 15,016,918) | 15,582,804) | 15,981,328) | 13,980,065) | 14,015,974) | 14,543,261) | 14,300,368) | 14,469,538) | 14,437,128) | 14,353,076) | 13,888,117) | 14,233,303) | 14,534,561) | ||||||
| Stockholders’ equity | 29,286,253) | 30,152,052) | 31,126,399) | 26,615,488) | 25,954,035) | 24,951,899) | 24,028,073) | 24,743,567) | 22,720,736) | 22,112,693) | 21,365,410) | 20,588,313) | 22,107,627) | 22,832,215) | 21,828,196) | 20,777,401) | 20,528,141) | 19,075,974) | 17,544,039) | ||||||
| Total capital | 44,418,647) | 44,461,358) | 45,486,915) | 41,078,324) | 40,417,055) | 39,405,105) | 39,044,991) | 40,326,371) | 38,702,064) | 36,092,758) | 35,381,384) | 35,131,574) | 36,407,995) | 37,301,753) | 36,265,324) | 35,130,477) | 34,416,258) | 33,309,277) | 32,078,600) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.34 | 0.32 | 0.32 | 0.35 | 0.36 | 0.37 | 0.38 | 0.39 | 0.41 | 0.39 | 0.40 | 0.41 | 0.39 | 0.39 | 0.40 | 0.41 | 0.40 | 0.43 | 0.45 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 0.16 | 0.13 | 0.14 | 0.10 | 0.05 | 0.06 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | ||||||
| Comcast Corp. | 0.49 | 0.50 | 0.52 | 0.51 | 0.51 | 0.51 | 0.53 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.51 | 0.50 | ||||||
| Meta Platforms Inc. | 0.23 | 0.24 | 0.19 | 0.21 | 0.13 | 0.13 | 0.13 | 0.14 | 0.15 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.07 | 0.07 | 0.07 | 0.00 | 0.00 | ||||||
| Walt Disney Co. | 0.29 | 0.30 | 0.30 | 0.28 | 0.28 | 0.29 | 0.31 | 0.31 | 0.32 | 0.32 | 0.32 | 0.32 | 0.33 | 0.33 | 0.33 | 0.34 | 0.36 | 0.36 | 0.38 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,132,394 ÷ 44,418,647 = 0.34
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent improvement in financial leverage over the period from March 2022 through September 2026. This trend is characterized by a gradual reduction in the debt-to-capital ratio, indicating a strategic shift toward a more equity-heavy capital structure and a reduced reliance on borrowed funds.
- Total Debt Dynamics
- Total debt levels remained relatively stable, fluctuating within a defined range. A low of approximately 13.89 billion US dollars was recorded in September 2022, while a peak of 15.98 billion US dollars occurred in September 2024. Following this peak, debt levels normalized and stabilized around 14.3 billion to 15.1 billion US dollars, suggesting a controlled approach to long-term liabilities.
- Total Capital Growth
- A sustained upward trajectory in total capital is observed, rising from 32.08 billion US dollars in March 2022 to 44.42 billion US dollars by September 2026. This significant expansion of the capital base, occurring while total debt remained relatively flat, indicates a substantial increase in equity or retained earnings over the analyzed timeframe.
- Debt to Capital Ratio Trends
- The debt to capital ratio decreased from 0.45 in March 2022 to 0.34 by September 2026. A period of relative stability was noted between December 2022 and December 2024, where the ratio fluctuated narrowly between 0.39 and 0.41. A more pronounced decline was observed starting in March 2025, reaching a minimum of 0.32 in the first half of 2026. This overall decline signals an enhancement in solvency and a lower risk profile regarding the organization's ability to meet long-term obligations.
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Debt to Assets
Netflix Inc., debt to assets calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Short-term debt | 2,474,796) | 2,483,758) | 999,185) | 998,865) | —) | —) | 1,005,881) | 1,784,453) | 1,820,396) | 1,800,041) | 798,936) | 399,844) | 399,614) | 399,387) | 399,163) | —) | —) | —) | —) | ||||||
| Long-term debt | 12,657,598) | 11,825,548) | 13,361,331) | 13,463,971) | 14,463,020) | 14,453,206) | 14,011,037) | 13,798,351) | 14,160,932) | 12,180,024) | 13,217,038) | 14,143,417) | 13,900,754) | 14,070,151) | 14,037,965) | 14,353,076) | 13,888,117) | 14,233,303) | 14,534,561) | ||||||
| Total debt | 15,132,394) | 14,309,306) | 14,360,516) | 14,462,836) | 14,463,020) | 14,453,206) | 15,016,918) | 15,582,804) | 15,981,328) | 13,980,065) | 14,015,974) | 14,543,261) | 14,300,368) | 14,469,538) | 14,437,128) | 14,353,076) | 13,888,117) | 14,233,303) | 14,534,561) | ||||||
| Total assets | 58,681,954) | 58,450,441) | 61,015,914) | 55,596,993) | 54,934,835) | 53,099,664) | 52,087,644) | 53,630,374) | 52,281,844) | 49,098,895) | 48,827,721) | 48,731,992) | 49,501,786) | 50,817,473) | 49,490,345) | 48,594,768) | 47,562,187) | 46,350,935) | 45,330,904) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.26 | 0.24 | 0.24 | 0.26 | 0.26 | 0.27 | 0.29 | 0.29 | 0.31 | 0.28 | 0.29 | 0.30 | 0.29 | 0.28 | 0.29 | 0.30 | 0.29 | 0.31 | 0.32 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 0.12 | 0.11 | 0.11 | 0.08 | 0.04 | 0.05 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | ||||||
| Comcast Corp. | 0.34 | 0.35 | 0.36 | 0.36 | 0.36 | 0.37 | 0.37 | 0.37 | 0.38 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.36 | 0.35 | 0.35 | ||||||
| Meta Platforms Inc. | 0.17 | 0.19 | 0.15 | 0.16 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.05 | 0.05 | 0.06 | 0.00 | 0.00 | ||||||
| Walt Disney Co. | 0.22 | 0.23 | 0.23 | 0.21 | 0.21 | 0.22 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | 0.26 | 0.27 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 15,132,394 ÷ 58,681,954 = 0.26
2 Click competitor name to see calculations.
The Debt to Assets ratio demonstrates a general trajectory of decline over the observed period, indicating a strengthening of the solvency position. Starting at 0.32 in March 2022, the ratio trended downward to a low of 0.24 by the second quarter of 2026, before settling at 0.26 in September 2026. This trend suggests a strategic shift toward a less leveraged capital structure.
- Asset Base Expansion
- A consistent upward trend is observed in total assets, which grew from approximately 45.33 billion USD in March 2022 to 58.68 billion USD by September 2026. This expansion is a primary driver in the reduction of the debt-to-assets ratio, as the growth in the asset base has significantly outpaced the growth in total liabilities.
- Debt Level Stability
- Total debt remained relatively stable throughout the period, fluctuating primarily between 13.89 billion USD and 15.98 billion USD. A temporary peak in leverage was recorded in September 2024, where debt reached 15.98 billion USD, causing a brief increase in the ratio to 0.31. However, this was followed by a period of stabilization and moderate reduction.
- Solvency Ratio Interpretation
- The compression of the ratio from 0.32 to 0.26 reflects an improvement in the organization's ability to cover its total debt through its asset base. The most significant improvement occurred between December 2025 and June 2026, where the ratio dropped to its minimum of 0.24, coinciding with a substantial increase in total assets to over 61 billion USD in March 2026.
Overall, the data indicates a robust solvency profile characterized by steady asset accumulation and disciplined debt management, resulting in a lower dependence on borrowed capital relative to the total value of the company's assets.
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Financial Leverage
Netflix Inc., financial leverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Total assets | 58,681,954) | 58,450,441) | 61,015,914) | 55,596,993) | 54,934,835) | 53,099,664) | 52,087,644) | 53,630,374) | 52,281,844) | 49,098,895) | 48,827,721) | 48,731,992) | 49,501,786) | 50,817,473) | 49,490,345) | 48,594,768) | 47,562,187) | 46,350,935) | 45,330,904) | ||||||
| Stockholders’ equity | 29,286,253) | 30,152,052) | 31,126,399) | 26,615,488) | 25,954,035) | 24,951,899) | 24,028,073) | 24,743,567) | 22,720,736) | 22,112,693) | 21,365,410) | 20,588,313) | 22,107,627) | 22,832,215) | 21,828,196) | 20,777,401) | 20,528,141) | 19,075,974) | 17,544,039) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 2.00 | 1.94 | 1.96 | 2.09 | 2.12 | 2.13 | 2.17 | 2.17 | 2.30 | 2.22 | 2.29 | 2.37 | 2.24 | 2.23 | 2.27 | 2.34 | 2.32 | 2.43 | 2.58 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 1.48 | 1.44 | 1.47 | 1.43 | 1.39 | 1.38 | 1.38 | 1.39 | 1.37 | 1.38 | 1.39 | 1.42 | 1.45 | 1.43 | 1.42 | 1.43 | 1.41 | 1.39 | 1.41 | ||||||
| Comcast Corp. | 2.79 | 2.87 | 2.95 | 2.81 | 2.81 | 2.83 | 3.09 | 3.11 | 3.15 | 3.15 | 3.19 | 3.20 | 3.16 | 3.12 | 3.15 | 3.18 | 3.17 | 2.92 | 2.89 | ||||||
| Meta Platforms Inc. | 1.76 | 1.72 | 1.62 | 1.68 | 1.57 | 1.51 | 1.51 | 1.51 | 1.56 | 1.47 | 1.49 | 1.50 | 1.51 | 1.54 | 1.48 | 1.48 | 1.44 | 1.35 | 1.33 | ||||||
| Walt Disney Co. | 1.86 | 1.89 | 1.86 | 1.80 | 1.80 | 1.88 | 1.93 | 1.95 | 1.97 | 1.97 | 1.96 | 2.07 | 2.09 | 2.09 | 2.10 | 2.14 | 2.21 | 2.23 | 2.26 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 58,681,954 ÷ 29,286,253 = 2.00
2 Click competitor name to see calculations.
The financial trajectory from March 2022 through September 2026 is characterized by a consistent expansion of the balance sheet coupled with a systematic reduction in financial leverage. This indicates a strategic shift toward a more equity-funded capital structure and a decrease in overall financial risk.
- Total Asset Growth
- Total assets exhibited a sustained upward trend, growing from 45.33 billion USD in March 2022 to 58.68 billion USD by September 2026. Notable accelerations in asset accumulation occurred between June 2024 and September 2024, and again leading into March 2026, where assets peaked at 61.02 billion USD before stabilizing.
- Stockholders' Equity Expansion
- Equity saw significant growth over the analyzed period, increasing from 17.54 billion USD in March 2022 to 29.29 billion USD in September 2026. This growth was largely linear, with a substantial peak reaching 31.13 billion USD in March 2026. The steady accumulation of equity indicates strong retained earnings or capital injections, which have served as the primary driver for the improvement in solvency ratios.
- Financial Leverage Trend
- The financial leverage ratio demonstrates a clear downward trajectory, declining from 2.58 in March 2022 to 2.00 by September 2026. A period of relative stability was observed between March 2023 and December 2024, where the ratio fluctuated within a narrow range of 2.17 to 2.37. A significant improvement occurred in the first half of 2026, where the ratio dipped below 2.00, reaching a low of 1.94 in June 2026. This trend confirms that the growth in stockholders' equity has outpaced the growth in total assets, effectively reducing the company's reliance on external liabilities to finance its operations.
In summary, the period is marked by a strengthening solvency position. The reduction in the leverage ratio from 2.58 to 2.00 suggests a more conservative financial posture and an enhanced capacity to absorb potential financial shocks.
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Interest Coverage
Netflix Inc., interest coverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net income | 3,663,927) | 3,401,414) | 5,282,791) | 2,418,521) | 2,546,916) | 3,125,413) | 2,890,351) | 1,868,607) | 2,363,509) | 2,147,306) | 2,332,209) | 937,838) | 1,677,422) | 1,487,610) | 1,305,120) | 55,284) | 1,398,242) | 1,440,951) | 1,597,447) | ||||||
| Add: Income tax expense | 652,978) | 667,172) | 1,264,295) | 349,220) | 562,494) | 506,262) | 323,375) | 265,661) | 339,445) | 366,550) | 282,370) | 210,312) | 231,627) | 191,722) | 163,754) | (15,948) | 223,605) | 182,103) | 382,245) | ||||||
| Add: Interest expense | 184,701) | 175,685) | 262,077) | 234,395) | 175,294) | 182,649) | 184,172) | 192,603) | 184,830) | 167,986) | 173,314) | 175,212) | 175,563) | 174,812) | 174,239) | 170,603) | 172,575) | 175,455) | 187,579) | ||||||
| Earnings before interest and tax (EBIT) | 4,501,606) | 4,244,271) | 6,809,163) | 3,002,136) | 3,284,704) | 3,814,324) | 3,397,898) | 2,326,871) | 2,887,784) | 2,681,842) | 2,787,893) | 1,323,362) | 2,084,612) | 1,854,144) | 1,643,113) | 209,939) | 1,794,422) | 1,798,509) | 2,167,271) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 21.66 | 20.46 | 19.79 | 17.38 | 17.45 | 16.70 | 15.48 | 14.87 | 13.80 | 12.83 | 11.52 | 9.87 | 8.33 | 7.95 | 7.86 | 8.45 | 8.97 | 8.83 | 8.62 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | 4.29 | 4.18 | 6.39 | 6.84 | 7.25 | 7.46 | 5.32 | 5.52 | 5.69 | 5.82 | 5.99 | 6.01 | 5.97 | 3.79 | 3.50 | 3.38 | 3.35 | 5.43 | 5.57 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (4,501,606 + 4,244,271 + 6,809,163 + 3,002,136)
÷ (184,701 + 175,685 + 262,077 + 234,395)
= 21.66
2 Click competitor name to see calculations.
The financial data indicates a significant strengthening of the company's solvency position over the observed period. While there was initial volatility in operating earnings, a sustained upward trajectory in EBIT has substantially increased the margin of safety for servicing debt obligations, resulting in a marked improvement in the interest coverage ratio.
- Earnings Before Interest and Tax (EBIT) Trends
- EBIT exhibited considerable fluctuations in 2022, characterized by a sharp decline to 209,939 thousand US$ in December 2022. However, a recovery phase began in early 2023, with earnings stabilizing and then growing consistently throughout 2024. A period of aggressive expansion is observed from 2025 through 2026, with EBIT reaching a peak of 6,809,163 thousand US$ in March 2026, reflecting a substantial increase in operational profitability compared to the baseline levels of 2022.
- Interest Expense Analysis
- Interest expenses remained relatively stable for the majority of the analyzed timeframe, generally fluctuating between 167,986 thousand US$ and 192,603 thousand US$. A moderate increase in interest costs occurred toward the end of 2025 and early 2026, peaking at 262,077 thousand US$ in March 2026. Despite these nominal increases, the growth in interest expenses was vastly outweighed by the growth in EBIT.
- Interest Coverage Ratio Evolution
- The interest coverage ratio demonstrates a clear and consistent upward trend. After maintaining a range between 7.86 and 9.87 throughout 2022 and 2023, the ratio entered a phase of rapid acceleration starting in March 2024. The ratio climbed from 11.52 in March 2024 to 21.66 by September 2026. This progression indicates that the company's ability to cover its interest payments from operating profits has more than doubled, significantly reducing solvency risk and enhancing financial flexibility.
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