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.
Long-term Activity Ratios (Summary)
Netflix Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Netflix Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Netflix Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Netflix Inc. total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Netflix Inc. equity turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Net Fixed Asset Turnover
Netflix Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 29,697,844 | 24,996,056 | 20,156,447 | 15,794,341 | 11,692,713 | |
| Property and equipment, net | 1,323,453 | 960,183 | 565,221 | 418,281 | 319,404 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 22.44 | 26.03 | 35.66 | 37.76 | 36.61 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | 2.64 | 2.15 | 2.20 | 2.29 | 2.62 | |
| Charter Communications Inc. | 1.51 | 1.40 | 1.32 | 1.24 | 1.23 | |
| Comcast Corp. | 2.15 | 1.99 | 2.25 | 2.13 | 2.20 | |
| Meta Platforms Inc. | 2.04 | 1.88 | 2.00 | 2.26 | 2.96 | |
| Twitter Inc. | 2.44 | 2.49 | 3.35 | 3.44 | 3.16 | |
| Walt Disney Co. | 2.05 | 2.02 | 2.19 | 2.00 | 1.93 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | 2.31 | 2.04 | 2.13 | 2.10 | 2.19 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | 1.87 | 1.70 | 1.78 | 1.72 | 1.71 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 29,697,844 ÷ 1,323,453 = 22.44
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Netflix Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
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, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 29,697,844 | 24,996,056 | 20,156,447 | 15,794,341 | 11,692,713 | |
| Property and equipment, net | 1,323,453 | 960,183 | 565,221 | 418,281 | 319,404 | |
| Operating lease right-of-use assets, net (included in Other non-current assets) | 2,446,573 | 2,037,726 | 1,532,285 | — | — | |
| Property and equipment, net (including operating lease, right-of-use asset) | 3,770,026 | 2,997,909 | 2,097,506 | 418,281 | 319,404 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.88 | 8.34 | 9.61 | 37.76 | 36.61 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Alphabet Inc. | 2.33 | 1.88 | 1.91 | 2.29 | 2.62 | |
| Charter Communications Inc. | 1.45 | 1.35 | 1.28 | 1.24 | 1.23 | |
| Comcast Corp. | 1.92 | 1.86 | 2.08 | 2.13 | 2.20 | |
| Meta Platforms Inc. | 1.69 | 1.56 | 1.58 | 2.26 | 2.96 | |
| Twitter Inc. | 1.55 | 1.53 | 2.00 | 3.44 | 3.16 | |
| Walt Disney Co. | 1.83 | 1.81 | 2.19 | 2.00 | 1.93 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | 2.01 | 1.81 | 1.90 | 2.10 | 2.19 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | 1.54 | 1.41 | 1.50 | 1.72 | 1.71 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 29,697,844 ÷ 3,770,026 = 7.88
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Netflix Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Total Asset Turnover
Netflix Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 29,697,844 | 24,996,056 | 20,156,447 | 15,794,341 | 11,692,713 | |
| Total assets | 44,584,663 | 39,280,359 | 33,975,712 | 25,974,400 | 19,012,742 | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.67 | 0.64 | 0.59 | 0.61 | 0.61 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | 0.72 | 0.57 | 0.59 | 0.59 | 0.56 | |
| Charter Communications Inc. | 0.36 | 0.33 | 0.31 | 0.30 | 0.28 | |
| Comcast Corp. | 0.42 | 0.38 | 0.41 | 0.38 | 0.45 | |
| Meta Platforms Inc. | 0.71 | 0.54 | 0.53 | 0.57 | 0.48 | |
| Twitter Inc. | 0.36 | 0.28 | 0.27 | 0.30 | 0.33 | |
| Walt Disney Co. | 0.33 | 0.32 | 0.36 | 0.60 | 0.58 | |
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | 0.54 | 0.45 | 0.45 | 0.47 | 0.47 | |
| Total Asset Turnover, Industry | ||||||
| Communication Services | 0.44 | 0.40 | 0.42 | 0.44 | 0.45 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Total asset turnover = Revenues ÷ Total assets
= 29,697,844 ÷ 44,584,663 = 0.67
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Netflix Inc. total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Equity Turnover
Netflix Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 29,697,844 | 24,996,056 | 20,156,447 | 15,794,341 | 11,692,713 | |
| Stockholders’ equity | 15,849,248 | 11,065,240 | 7,582,157 | 5,238,765 | 3,581,956 | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.87 | 2.26 | 2.66 | 3.01 | 3.26 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Alphabet Inc. | 1.02 | 0.82 | 0.80 | 0.77 | 0.73 | |
| Charter Communications Inc. | 3.68 | 2.02 | 1.46 | 1.20 | 1.06 | |
| Comcast Corp. | 1.21 | 1.15 | 1.32 | 1.32 | 1.23 | |
| Meta Platforms Inc. | 0.94 | 0.67 | 0.70 | 0.66 | 0.55 | |
| Twitter Inc. | 0.69 | 0.47 | 0.40 | 0.45 | 0.48 | |
| Walt Disney Co. | 0.76 | 0.78 | 0.78 | 1.22 | 1.33 | |
| Equity Turnover, Sector | ||||||
| Media & Entertainment | 1.08 | 0.91 | 0.92 | 0.95 | 0.90 | |
| Equity Turnover, Industry | ||||||
| Communication Services | 1.12 | 1.02 | 1.05 | 1.09 | 1.14 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= 29,697,844 ÷ 15,849,248 = 1.87
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Netflix Inc. equity turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |