Netflix Debt to Equity Ratio Trends (2024)

FAQs

What is the debt-to-equity ratio for Netflix? ›

Netflix Debt to Equity Ratio: 0.656 for March 31, 2024.

In 2020, Netflix reached its highest level of total debt at $18.5 billion. This money was borrowed to support its growth plans and to finance its operational expenses, including the creation of entertainment content, salaries, rent, and promotional activities.

Generally, a good debt ratio is around 1 to 1.5. However, the ideal debt ratio will vary depending on the industry, as some industries use more debt financing than others.

Total debt on the balance sheet as of March 2024 : $14.01 B

According to Netflix's latest financial reports the company's total debt is $14.01 B. A company's total debt is the sum of all current and non-current debts.

Fair Value Estimate for Netflix Stock

With its 2-star rating, we believe Netflix's stock is overvalued compared with our long-term fair value estimate of $440, which implies a multiple of 24 times our 2024 earnings per share forecast.

Min: 15.93 Med: 115.28 Max: 508.03

During the past 13 years, the highest PE Ratio (TTM) of Netflix was 508.03. The lowest was 15.93. And the median was 115.28.

Disney has a net debt position of $39 billion -- more than half of Disney's trailing-12-month revenue. Netflix ended the first quarter with a net debt position of $8.5 billion -- less than a third of Netflix's trailing-12-month revenue.

A Look At Netflix's Liabilities

Zooming in on the latest balance sheet data, we can see that Netflix had liabilities of US$9.29b due within 12 months and liabilities of US$18.2b due beyond that. Offsetting this, it had US$7.05b in cash and US$1.23b in receivables that were due within 12 months.

As Netflix looks forward to the high capital requirements needed to continue to grow its business, it has to continue to choose financing according to its cost of capital. And Netflix has chosen to finance its content investments both by operating profits and the remaining needs with debt.

Is Netflix even profitable? ›

Netflix has the luxury of focusing on profit, revenue and free cash flow because the company's finances are far healthier than most legacy media companies. For example, year-over-year revenue climbed 15%. Operating income grew by 54%, and operating margin rose by 7 percentage points to 28%.

Netflix (NFLX) LT-Debt-to-Total-Asset : 0.27 (As of Mar. 2024)

A financial leverage ratio of less than 1 is usually considered good by industry standards. A leverage ratio higher than 1 can cause a company to be considered a risky investment by lenders and potential investors, while a financial leverage ratio higher than 2 is cause for concern.

According to Netflix's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 63.5833. At the end of 2022 the company had a P/E ratio of 29.2.

Tesla's operated at median debt / equity, adjusted of 29.4% from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Tesla's debt / equity, adjusted peaked in December 2019 at 220.2%. Tesla's debt / equity, adjusted hit its 5-year low in December 2022 of 12.9%.

Min: 0.29 Med: 0.83 Max: 1.37

During the past 13 years, the highest Debt-to-Equity Ratio of Amazon.com was 1.37. The lowest was 0.29. And the median was 0.83.