Netflix Inc. (NASDAQ:NFLX)

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibits a general declining trend from March 2021 to June 2023, decreasing from 26.03 to 21.83. Following this period, the ratio stabilizes and experiences minor fluctuations, hovering around 22 to 24 through to the end of the projection in March 2025. This pattern indicates an initial reduction in the efficiency of generating sales from fixed assets, followed by a phase of relative stability and moderate improvement toward the later periods.

Total Asset Turnover

The total asset turnover ratio remained relatively steady at approximately 0.64 to 0.67 through 2021 into early 2022. Subsequently, the ratio shows a gradual increase starting in mid-2023, rising from 0.63 to 0.77 by March 2025. This positive trend suggests an improving ability to generate revenue from the company's total asset base over the latter part of the observed timeframe.

Equity Turnover

Equity turnover declines consistently from 2.26 at the beginning of 2021 to a low of 1.41 in September 2023, indicating reduced efficiency in generating sales relative to shareholder equity during this interval. Following this low point, the ratio recovers progressively, reaching 1.67 by March 2025. The recovery reflects an increased capacity to utilize equity for revenue generation in the more recent periods.

The quarterly financial data reveals several notable trends in the company's performance over the examined period.

Revenues (US$ in thousands)

Revenues demonstrated a consistent upward trajectory from March 31, 2020, through March 31, 2025. Starting at approximately 5.77 billion USD in early 2020, revenues gradually increased each quarter, reaching over 10.54 billion USD by the first quarter of 2025. This steady growth indicates a sustained expansion in the company's sales or service uptake over the five-year span, with only minor fluctuations observed in some quarters.

Property and Equipment, Net (US$ in thousands)

The net value of property and equipment consistently increased from around 650 million USD in early 2020 to approximately 1.64 billion USD by March 31, 2025. This upward trend suggests ongoing investments in fixed assets or capital expenditures. The growth rate was relatively stable, reflecting steady capital allocation towards physical assets, possibly to support operational growth or technological infrastructure.

Net Fixed Asset Turnover (ratio)

The net fixed asset turnover ratio, reported from the third quarter of 2020 onward, exhibited a gradual declining trend from 26.03 to a low of approximately 21.83 by the third quarter of 2022. Subsequently, the ratio showed a slight recovery and general stabilization, hovering in the low-to-mid 24 range through early 2025. This pattern indicates that while revenues grew substantially, the asset base grew more rapidly at times, leading to some reduction in turnover efficiency. The modest recovery later suggests improved utilization of fixed assets relative to revenue.

In summary, the company displayed consistent revenue growth alongside continuous expansion of its property and equipment base. The evolving net fixed asset turnover ratio points to periods of decreased efficiency in asset use amid capital expansion, followed by improvements. These trends highlight a strategic balance between investing in tangible assets and maintaining operational effectiveness.

The financial data reveals several trends over the indicated periods. Revenues show a steady increase from March 31, 2020, to March 31, 2025, growing from approximately 5.77 billion US dollars to over 10.54 billion US dollars. This upward trend indicates consistent revenue expansion and suggests successful business operations or market growth during the timeframe.

Total assets also demonstrate a generally increasing pattern, starting at about 35.06 billion US dollars in March 2020, peaking near 50.82 billion US dollars towards the late 2024 periods, before a slight decrease to around 52.09 billion US dollars by March 2025. Despite minor fluctuations, the asset base overall expands, which may reflect investments in infrastructure, content acquisition, or other asset increases supporting business growth.

The total asset turnover ratio, which measures revenues generated per unit of assets, shows variation but generally suggests improving efficiency. Starting from 0.64 in the third quarter of 2020, it remains relatively stable around 0.66–0.67 through 2021 and early 2022, and then gradually rises after mid-2023 to reach approximately 0.77 by March 2025. This trend indicates that the company is generating more revenue per asset dollar over time, reflecting enhanced asset utilization efficiency despite increasing asset size.

In summary, the overall financial trends suggest that the company is achieving consistent revenue growth alongside an expanding asset base, while improving the efficiency with which it uses its assets. The gradual improvement in total asset turnover towards the end of the period signals effective management of assets in generating higher revenues.

The revenues exhibit a consistent upward trajectory over the analyzed period. Starting from approximately $5.77 billion in the first quarter of 2020, revenues increased steadily to reach about $10.54 billion by the first quarter of 2025. This growth demonstrates a robust sales expansion, with occasional quarterly fluctuations, particularly a slight decline noted in late 2022, before continuing the rising trend in subsequent quarters. The overall pattern indicates sustained demand and successful revenue generation strategies.

Stockholders’ equity also shows a general growth trend, starting at around $8.41 billion in early 2020 and climbing to approximately $24.03 billion by Q1 2025. The progression is mostly upward, though some mild volatility is observed in 2023 and early 2025, where equity levels show minor declines after peaking. This pattern suggests periodic adjustments or distributions but overall indicates increasing net asset value and accumulation of retained earnings over time.

The equity turnover ratio, which measures how efficiently the company uses its equity to generate revenues, presents a declining trend initially from 2.26 in Q3 2020 to around 1.41 in Q2 2023. This decrease in turnover ratio indicates that revenue growth was not keeping pace proportionally with equity growth during this period. However, from mid-2023 onward, the ratio stabilizes and slightly increases, fluctuating around values between 1.48 and 1.67. This implies a modest improvement in the efficiency of equity utilization in generating revenues more recently.

In summary, the company demonstrates strong revenue and equity growth over the five-year span with some fluctuations in equity turnover efficiency. The gradual improvement in equity turnover in the latest quarters may reflect more effective capital deployment or operational efficiencies following a period of relatively lower turnover.

Revenues

Steady increase from $5.77B in Q1 2020 to $10.54B in Q1 2025, minor fluctuations observed late 2022.

Stockholders’ Equity

Growth from $8.41B to $24.03B over the period, with some volatility especially in 2023 and early 2025.

Equity Turnover Ratio

Declined from 2.26 to about 1.41 by mid-2023, then stabilized and slightly improved to around 1.58–1.67 by early 2025.