Netflix Inc. (NASDAQ:NFLX)

Net fixed asset turnover

The net fixed asset turnover ratio was initially reported at 26.03 in March 2021 and demonstrated a gradual decline throughout the year 2021 to 23.47 by December 2021. This declining trend continued more moderately into 2022, reaching a low point around 21.83 in March 2023. Subsequently, a slight recovery trend emerged during 2023 and 2024, with the ratio increasing steadily to approximately 24.47 by March 2025. Overall, the ratio shows an initial decreasing utilization efficiency of fixed assets, followed by a recovery phase indicating improved asset usage effectiveness in later periods.

Total asset turnover

The total asset turnover ratio started at 0.64 in March 2021 and experienced a marginal increase during the mid-2021 period, peaking at 0.67 in several quarters until late 2021. Thereafter, the ratio declined slightly to 0.63 by March 2023. From mid-2023 onwards, the ratio exhibited a noticeable upwards trend, increasing to 0.79 by June 2025. This progression suggests that after a period of slight stagnation or mild decline, the company improved its overall asset utilization in generating revenue, indicating enhanced operational efficiency over the latter periods examined.

Equity turnover

The equity turnover ratio began at 2.26 in March 2021 and experienced a steady decline throughout 2021, reaching 1.87 by December 2021. The downward trend continued, with the ratio falling to 1.41 by September 2023. Starting from late 2023 to mid-2025, the ratio showed a modest recovery, stabilizing around values between 1.58 and 1.67. This pattern indicates a reduction in how effectively the company's equity has been employed to generate sales in the early periods, followed by a period of modest improvement and stabilization in equity usage efficiency in the most recent quarters.

The quarterly financial data reveals several notable trends in revenues, property and equipment net values, and net fixed asset turnover over the examined periods.

Revenues

Revenues show a consistent upward trend from March 31, 2020 through June 30, 2025. Starting at approximately 5.77 billion US dollars in March 2020, revenues steadily increased to over 11.08 billion US dollars by June 2025. This reflects sustained growth each quarter, with only minor fluctuations or plateaus. The data suggests successful expansion or increased sales and service traction consistently over the years.

Property and Equipment, Net

The net value of property and equipment also displays a steady increase from March 2020 through June 2025. Beginning at about 650 million US dollars, the figure rose to over 1.74 billion US dollars by mid-2025. This consistent growth in fixed assets indicates ongoing investment in physical infrastructure or technology, supporting the company’s operational capacity expansion. There is a clear positive correlation between rising assets and revenue growth.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio displays variation over the periods. It was unreported for the initial quarters but from December 2020 on shows a general decline from around 26.03 in late 2020 down to approximately 21.83 by mid-2023. Subsequently, a gradual recovery and slight increase occur, with the ratio rising back toward the 24.43 levels by mid-2025. This pattern suggests fluctuations in asset utilization efficiency, potentially reflecting periods of significant asset investment followed by adjustments where revenue growth intermittently outpaces or lags fixed asset increases.

In summary, the data indicates strong and steady financial growth evidenced by increased revenues and asset base. However, the efficiency in using fixed assets to generate revenues experienced a downward trend initially, followed by a recovery phase. These trends may reveal strategic investment phases aimed at long-term capacity building, accompanied by improving operational efficiency in later periods.

The financial data indicates a steady increase in revenues over the entire period presented. Revenues grew from approximately 5.77 billion US dollars in the first quarter of 2020 to about 11.08 billion US dollars by the second quarter of 2025. This growth reflects a consistent upward trend, with no major declines observed, signifying an expansion in the company's sales or service income.

Total assets also exhibited an overall growth trajectory, rising from roughly 35.06 billion US dollars at the beginning of 2020 to around 53.10 billion US dollars by mid-2025. Although total assets increased steadily, there are quarters, particularly between late 2022 and early 2024, where asset values plateaued or slightly declined before resuming an upward movement. This fluctuation may suggest periods of asset disposals or valuation changes, but the general pattern remains positive in long-term asset accumulation.

The total asset turnover ratio, available from September 2020 onwards, displays a pattern of gradual improvement. Starting at 0.64, the ratio generally increased with minor fluctuations, reaching 0.79 by the second quarter of 2025. This indicates enhanced efficiency in utilizing assets to generate revenue. The upward trend in this ratio implies that the company has been improving its operational performance relative to its asset base over time.

Overall, the data shows robust growth in both revenue and asset base, coupled with an improving asset turnover ratio. This suggests successful scaling of the business and improving asset utilization efficiency during the period under review.

Over the observed period, revenues exhibited a generally upward trajectory with periodic fluctuations. Starting from approximately 5.77 billion USD in March 2020, revenues increased steadily, reaching over 11 billion USD by June 2025. Notably, there was consistent growth each year with minor seasonal variations often occurring within quarters.

Stockholders’ equity also showed a rising trend throughout the timeline, beginning at around 8.41 billion USD in March 2020 and peaking near 22.95 billion USD toward the end of 2024. Despite this overall growth, equity experienced some volatility, particularly a noticeable decline after the peak in mid-2023, yet it rebounded in the following quarters. This suggests periods of capital adjustments or other equity-related transactions influencing the total equity value.

The equity turnover ratio, available from September 2020 onwards, demonstrated a declining trend initially, starting at 2.26 and steadily decreasing to a low near 1.41 by September 2023. From this point, the ratio showed a modest recovery, rising back to around 1.67 by June 2025. The initial decline indicates a reduced efficiency in generating revenues from equity over time, while the recent increase suggests some improvement in this efficiency metric.

In summary, the company experienced steady revenue growth coupled with an expanding equity base, albeit with some fluctuations in stockholders’ equity. The equity turnover ratio trend indicates a period of decreasing efficiency in utilizing equity for revenue generation, followed by a partial recovery toward the end of the observed timeframe.

Revenue Trends

Consistent growth from 5.77 billion USD to over 11 billion USD between March 2020 and June 2025, with minor quarter-to-quarter fluctuations.

Stockholders’ Equity Changes

General increase from approximately 8.41 billion USD to nearly 23 billion USD by late 2024, with some declines and recovery phases indicating equity volatility.

Equity Turnover Ratio

Started high at 2.26 in late 2020, decreased steadily to 1.41 by September 2023, then increased moderately to 1.67 by mid-2025, reflecting changes in equity utilization efficiency.