Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Netflix Inc. pages available for free this week:
- 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
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Netflix Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Netflix Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net fixed asset turnover
- The ratio shows a declining trend from 26.03 in 2020 to 22.44 in 2021, followed by stability in 2022 and 2023 at around 22.6, and a moderate increase to 24.47 in 2024. This suggests a decrease in the efficiency of utilizing net fixed assets in the initial years, with some recovery in the most recent year.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This ratio decreases slightly from 8.34 in 2020 to 7.88 in 2021, then rises steadily through 2022 to 2024, reaching 10.55. The increase over time indicates improved utilization of fixed assets when considering operating leases and right-of-use assets, reflecting possibly better management or increased operational efficiency related to leased assets.
- Total asset turnover
- The total asset turnover ratio demonstrates a generally positive trend, starting at 0.64 in 2020 and increasing incrementally to 0.73 by 2024. This consistent upward movement indicates an improving ability to generate sales from total assets over the reported periods.
- Equity turnover
- Equity turnover shows a declining trend from 2.26 in 2020 to 1.52 in 2022, followed by a slight recovery to 1.64 in 2023 and a minor decrease to 1.58 in 2024. Overall, this points to a reduced frequency of equity usage to generate sales, potentially indicating either higher equity levels or slower sales growth relative to equity over the period.
Net Fixed Asset Turnover
Netflix Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues demonstrate a consistent upward trend throughout the observed periods. Starting from approximately 24.996 billion US dollars in 2020, revenues increased steadily each year, reaching about 39.001 billion US dollars by the end of 2024. This reflects strong year-over-year growth, indicating expanding business operations or market demand.
- Property and Equipment, Net
- The net value of property and equipment shows a gradual rise over the studied timeframe. Beginning at roughly 960 million US dollars in 2020, the net fixed assets increased annually, reaching approximately 1.594 billion by the end of 2024. This growth tends to suggest ongoing investments in fixed assets, possibly aimed at supporting company expansion or technological upgrades.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, representing revenue generated per unit of net fixed assets, exhibits some fluctuation. It decreased from 26.03 in 2020 to around 22.44 by 2021, then remained relatively stable at about 22.6 through 2023 before rising again to 24.47 in 2024. This pattern may indicate initial large asset investments lowering efficiency temporarily, with subsequent improvements or stabilization in asset utilization efficiency towards 2024.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Netflix Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Operating lease right-of-use assets, net (included in Other non-current assets) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues display a consistent upward trajectory from 24,996,056 thousand US dollars in 2020 to 39,000,966 thousand US dollars in 2024. This represents a significant increase over the five-year period, indicating robust growth in the company's sales or service income annually.
- Property and equipment, net (including operating lease, right-of-use asset)
- The net value of property and equipment showed an initial increase from 2,997,909 thousand US dollars in 2020 to 3,770,026 thousand US dollars in 2021. Subsequently, there was a decline in 2022 and 2023 to 3,625,379 thousand and 3,568,343 thousand US dollars respectively, before a slight recovery to 3,696,066 thousand US dollars in 2024. This suggests some level of asset disposals, depreciation, or changes in leasing arrangements after 2021, followed by stabilization.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio starts at 8.34 in 2020 and experiences a small decrease to 7.88 in 2021. From 2022 onwards, this ratio exhibits a steady increase, reaching 10.55 in 2024. An improving turnover ratio indicates enhanced efficiency in utilizing fixed assets to generate revenues, reflecting better asset management or higher revenue generation relative to the asset base.
- Summary
- Overall, the data shows a strong revenue growth alongside improvements in asset efficiency, as indicated by the rising net fixed asset turnover ratio. Although the net property and equipment value slightly decreased after 2021, it did not hinder revenue expansion, suggesting that the company either optimized its asset utilization or shifted towards less capital-intensive operations. The increasing turnover ratio aligns with this interpretation, pointing to a more effective use of fixed assets over time.
Total Asset Turnover
Netflix Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Total Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several important trends over the five-year period ending in December 31, 2024.
- Revenues
- There is a consistent upward trend in revenues, starting from approximately 24.996 billion US dollars in 2020 and increasing each year to reach about 39.001 billion US dollars by 2024. This increase reflects a steady growth trajectory, with the most notable increment occurring between 2023 and 2024.
- Total assets
- Total assets exhibit growth across the reported years, increasing from roughly 39.28 billion US dollars in 2020 to approximately 53.63 billion US dollars in 2024. The growth is steady but shows a slight deceleration between 2022 and 2023, followed by a more pronounced rise in 2024.
- Total asset turnover
- The total asset turnover ratio, which measures the efficiency of asset use in generating revenue, shows an overall increasing pattern from 0.64 in 2020 to 0.73 in 2024. This indicates an improvement in asset utilization. Despite minor fluctuations—specifically a slight drop in 2022—the general trend suggests increasingly effective use of assets to produce revenue.
In summary, the company demonstrates robust revenue growth accompanied by a consistent increase in asset base. The improving asset turnover ratio suggests enhanced operational efficiency in leveraging assets to generate sales. This combination points to positive business developments and strengthening financial health over the reported period.
Equity Turnover
Netflix Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Equity Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Equity Turnover, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenues show a consistent upward trend over the five-year period. From US$24,996,056 thousand in 2020, revenues increased to US$39,000,966 thousand by 2024. This represents a significant overall growth, with revenue rising steadily each year, indicating expanding market operations or increasing sales volume.
- Stockholders’ Equity Evolution
- Stockholders' equity also demonstrates a strong positive trend, growing from US$11,065,240 thousand in 2020 to US$24,743,567 thousand in 2024. Although equity increased continuously until 2022, reaching over US$20 billion, it saw a slight decline in 2023 before rising again in 2024. This pattern may reflect distributions, equity repurchases, or losses offsetting gains in that particular year.
- Equity Turnover Analysis
- The equity turnover ratio reveals how efficiently the company's equity is being utilized to generate revenue. The ratio declined from 2.26 in 2020 to 1.52 in 2022, indicating a reduction in efficiency or slower growth in revenues relative to equity investment. However, there was a modest recovery in 2023 to 1.64, followed by a slight decline to 1.58 in 2024. Overall, the trend suggests diminishing returns on equity relative to 2020, but some improvement after the 2022 low point.
- Summary of Financial Performance
- The financial data reveals robust revenue growth paired with substantial increases in equity. However, the decreasing equity turnover ratio suggests that the growth in equity outpaced the growth in revenues, leading to less efficient utilization of equity capital over the period. The slight fluctuation in equity turnover in the latter years may suggest strategic adjustments or changes in operational efficiency.