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)
Netflix Inc., solvency ratios (quarterly data)
Based on: 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 overall solvency profile demonstrates a consistent strengthening of the financial position from March 2022 through June 2026. A systematic reduction in leverage is evident across all key metrics, indicating a strategic shift toward a more conservative capital structure and a decreased reliance on borrowed funds.
- Debt-to-Equity and Debt-to-Capital Ratios
- The debt-to-equity ratio experienced a significant downward trend, decreasing from 0.83 in March 2022 to 0.47 by June 2026. Similarly, the debt-to-capital ratio declined from 0.45 to 0.32 over the same period. These movements indicate a substantial increase in the proportion of equity relative to total debt, reducing the financial risk associated with long-term obligations.
- Asset-Based Solvency and Financial Leverage
- The debt-to-assets ratio shifted from 0.32 at the beginning of the period to 0.24 by June 2026. This contraction is mirrored by the financial leverage ratio, which decreased from 2.58 to 1.94. The simultaneous decline in both metrics suggests that a smaller portion of the total asset base is financed through debt, leading to a more stable balance sheet.
- Interest Coverage Capacity
- A pronounced improvement is observed in the interest coverage ratio, which climbed from 8.62 in March 2022 to 20.46 by June 2026. The growth became particularly aggressive after December 2023, with the ratio accelerating from 9.87 to over 20.00. This trajectory indicates a vastly improved ability to service interest expenses from operating earnings, providing a substantial margin of safety for creditors.
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Debt Ratios
Coverage Ratios
Debt to Equity
Netflix Inc., debt to equity calculation (quarterly data)
| 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 | 2,483,758) | 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 | 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 | 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 | 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 | 0.47 | 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. | 0.15 | 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. | 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. | 0.32 | 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 | ||||||
| Trade Desk Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Walt Disney Co. | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 14,309,306 ÷ 30,152,052 = 0.47
2 Click competitor name to see calculations.
The solvency profile reflects a consistent strengthening of the capital structure over the analyzed period. The primary characteristic of this trend is a significant reduction in the reliance on debt relative to equity, signaling a marked improvement in long-term financial stability and a reduction in financial leverage.
- Total Debt Dynamics
- Total debt remained relatively stable throughout the period, generally fluctuating between 13.8 billion and 14.6 billion US dollars. A notable deviation occurred in the third quarter of 2024, where debt peaked at approximately 15.98 billion US dollars. However, this increase was temporary, as debt levels moderated back to approximately 14.3 billion US dollars by the second quarter of 2026.
- Stockholders' Equity Growth
- Equity demonstrated a sustained upward trajectory, increasing from 17.54 billion US dollars in March 2022 to 30.15 billion US dollars by June 2026. This growth was most pronounced in the first quarter of 2026, where equity reached a peak of 31.13 billion US dollars. The consistent accumulation of equity serves as the primary driver for the overall improvement in the solvency ratio.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio declined from 0.83 in March 2022 to 0.47 by June 2026. Although intermittent fluctuations were observed—specifically peaks of 0.71 in December 2023 and 0.70 in September 2024—the long-term trend is one of steady compression. The most significant reduction occurred between December 2025 and March 2026, where the ratio dropped from 0.54 to 0.46, coinciding with the sharpest increase in stockholders' equity.
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Debt to Capital
Netflix Inc., debt to capital calculation (quarterly data)
| 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 | 2,483,758) | 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 | 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 | 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 | 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 | 44,461,358) | 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 | 0.32 | 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. | 0.13 | 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. | 0.50 | 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. | 0.24 | 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 | ||||||
| Trade Desk Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Walt Disney Co. | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,309,306 ÷ 44,461,358 = 0.32
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent improvement in the debt-to-capital ratio over the period from March 2022 to June 2026. The overall trend indicates a strategic reduction in the reliance on debt relative to the total capital base, suggesting a strengthening of the long-term financial position.
- Total Debt Trends
- Total debt remained relatively stable for the majority of the period, generally fluctuating between $13.8 billion and $14.6 billion. A temporary increase is observed in the latter half of 2024, with a peak of $15.98 billion on September 30, 2024. Following this peak, total debt trended downward, returning to $14.31 billion by June 30, 2026.
- Total Capital Expansion
- Total capital demonstrated a sustained upward trajectory, growing from $32.08 billion in March 2022 to $44.46 billion by June 2026. This steady expansion of the capital base provided the primary mechanism for the reduction of the solvency ratio, as capital growth consistently outpaced changes in total debt.
- Debt to Capital Ratio Analysis
- The debt to capital ratio declined from 0.45 in March 2022 to 0.32 by June 2026. Although minor fluctuations occurred—specifically increases to 0.41 in December 2022 and September 2024—the long-term progression is characterized by deleveraging. The most pronounced decline in the ratio is observed between March 2025 and June 2026, falling from 0.38 to 0.32, coinciding with a significant increase in total capital.
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Debt to Assets
Netflix Inc., debt to assets calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Short-term debt | 2,483,758) | 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 | 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 | 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 | 58,450,441) | 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 | 0.24 | 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. | 0.11 | 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. | 0.35 | 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. | 0.19 | 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 | ||||||
| Trade Desk Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Walt Disney Co. | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 14,309,306 ÷ 58,450,441 = 0.24
2 Click competitor name to see calculations.
An analysis of the solvency metrics from March 31, 2022, to June 30, 2026, reveals a consistent improvement in the financial leverage position. The overall trend is characterized by a steady expansion of the asset base coupled with relatively stable debt levels, resulting in a sustained reduction of the debt-to-assets ratio.
- Asset Growth Trends
- Total assets demonstrated a strong upward trajectory, increasing from 45,330,904 thousand US dollars in March 2022 to 58,450,441 thousand US dollars by June 2026. A significant acceleration in asset accumulation is noted in the first quarter of 2026, where assets peaked at 61,015,914 thousand US dollars, indicating a substantial increase in the company's resource base over the analyzed period.
- Debt Level Stability
- Total debt remained relatively contained, fluctuating within a range of approximately 13.8 billion to 15.9 billion US dollars. While a temporary peak was observed on September 30, 2024, at 15,981,328 thousand US dollars, the debt levels subsequently stabilized, ending the period at 14,309,306 thousand US dollars. This stability suggests that growth was not primarily funded through aggressive new borrowing.
- Debt to Assets Ratio Interpretation
- The debt-to-assets ratio declined from 0.32 in March 2022 to 0.24 by June 2026. Although minor volatility occurred between 2022 and 2024—with the ratio oscillating between 0.28 and 0.31—the final two years of the period show a clear downward trend. This decline indicates a reduced reliance on debt to finance assets and an overall strengthening of the solvency profile, reducing the long-term financial risk associated with leverage.
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Financial Leverage
Netflix Inc., financial leverage calculation (quarterly data)
| 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 | 58,450,441) | 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 | 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 | 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. | 1.44 | 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. | 2.87 | 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. | 1.72 | 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 | ||||||
| Trade Desk Inc. | 2.24 | 2.34 | 2.48 | 2.28 | 2.21 | 2.10 | 2.07 | 2.10 | 2.15 | 2.15 | 2.26 | 2.10 | 2.10 | 2.06 | 2.07 | 2.05 | 2.06 | 2.08 | ||||||
| Walt Disney Co. | 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: 2026-06-30), 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 Q2 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 58,450,441 ÷ 30,152,052 = 1.94
2 Click competitor name to see calculations.
The financial structure of the organization reflects a consistent trend toward deleveraging and a strengthened equity position from March 2022 through June 2026. An overall reduction in financial risk is evident as the company has systematically lowered its reliance on debt to finance its asset base.
- Total Asset Progression
- Total assets exhibit a general upward trajectory, increasing from 45,330,904 thousand US dollars in March 2022 to 58,450,441 thousand US dollars by June 2026. Although some volatility occurred between September 2023 and March 2024, the long-term trend indicates steady expansion of the company's resource base.
- Stockholders' Equity Growth
- Equity has grown substantially over the analyzed period, rising from 17,544,039 thousand US dollars to 30,152,052 thousand US dollars. This growth was particularly pronounced in the first quarter of 2026, where equity peaked at 31,126,399 thousand US dollars, suggesting strong retained earnings or capital contributions.
- Financial Leverage Ratio Trend
- The financial leverage ratio demonstrates a steady and continuous decline, moving from a high of 2.58 in March 2022 to a low of 1.94 by June 2026. This downward trend indicates that the growth in stockholders' equity has outpaced the growth in total assets, resulting in a more conservative capital structure and improved solvency.
The convergence of increasing equity and a decreasing leverage ratio suggests an intentional shift toward financial stability. By reducing the leverage ratio below the 2.0 threshold in early 2026, the company has significantly lowered its financial risk profile compared to the beginning of the period.
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Interest Coverage
Netflix Inc., interest coverage calculation (quarterly data)
| 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 | 3,401,414) | 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 | 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 | 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) | 4,244,271) | 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 | 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. | 4.18 | 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: 2026-06-30), 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 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (4,244,271 + 6,809,163 + 3,002,136 + 3,284,704)
÷ (175,685 + 262,077 + 234,395 + 175,294)
= 20.46
2 Click competitor name to see calculations.
An analysis of solvency indicators reveals a significant strengthening in the ability to service debt obligations over the observed period. The most prominent trend is the consistent expansion of the interest coverage ratio, which grew from a low of 7.86 in March 2023 to a peak of 20.46 by June 2026. This improvement is primarily driven by substantial growth in operational earnings relative to a largely stable interest expense base.
- Earnings Before Interest and Tax (EBIT)
- A period of volatility is observed in 2022, characterized by a sharp decline to 209,939 thousand US dollars in December 2022. However, a sustained recovery followed, with EBIT scaling from approximately 1.6 billion US dollars in early 2023 to a peak of 6.8 billion US dollars by March 2026. This aggressive growth trajectory indicates a significant increase in operational profitability and the volume of funds available to cover financial obligations.
- Interest Expense
- Interest costs remained relatively constant for the majority of the period, generally fluctuating between 167 million and 192 million US dollars. A temporary increase is noted in early 2026, peaking at 262,077 thousand US dollars in March 2026, before returning to 175,685 thousand US dollars in June 2026. The relative stability of these expenses suggests a controlled debt structure and a lack of significant new high-cost borrowing.
- Interest Coverage Ratio
- The ratio exhibited a steady upward trajectory starting in 2024. While coverage remained within the 7.86 to 9.87 range during 2022 and 2023, it accelerated throughout 2024 and 2025, eventually exceeding 20.0x by June 2026. This trend signifies a substantial reduction in solvency risk and a vastly expanded margin of safety, indicating that operating profits now cover interest expenses more than twenty times over.
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