Netflix (WBO:NFLX) Debt-to-Equity : 0.70 (As of Sep. 2024)

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What is Netflix Debt-to-Equity?

Netflix's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was €1,640 Mil. Netflix's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was €12,759 Mil. Netflix's Total Stockholders Equity for the quarter that ended in Sep. 2024 was €20,471 Mil. Netflix's debt to equity for the quarter that ended in Sep. 2024 was 0.70.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Netflix's Debt-to-Equity or its related term are showing as below:

WBO:NFLX' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.48 Med: 1.13 Max: 2.06
Current: 0.7

During the past 13 years, the highest Debt-to-Equity Ratio of Netflix was 2.06. The lowest was 0.48. And the median was 1.13.

WBO:NFLX's Debt-to-Equity is ranked worse than
68.95% of 831 companies
in the Media - Diversified industry
Industry Median: 0.28 vs WBO:NFLX: 0.70

Netflix Debt-to-Equity Historical Data

The historical data trend for Netflix's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Netflix Debt-to-Equity Chart

Netflix Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

Get a 7-Day Free Trial

1.95

1.47

0.97

0.69

0.71

Netflix Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Debt-to-Equity	Get a 7-Day Free Trial															0.65	0.71	0.66	0.63	0.70

Competitive Comparison of Netflix's Debt-to-Equity

For the Entertainment subindustry, Netflix's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Netflix's Debt-to-Equity Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Netflix's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Netflix's Debt-to-Equity falls into.

Netflix Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Netflix's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(366.657	+	12969.513)	/	18879.483
	=	0.71

Netflix's Debt to Equity Ratio for the quarter that ended in Sep. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(1640.177	+	12759)	/	20471.383
	=	0.70

Netflix (WBO:NFLX) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Netflix Debt-to-Equity Related Terms

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Netflix Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Netflix Inc (WBO:NFLX) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

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Address

121 Albright Way, Los Gatos, CA, USA, 95032

Website

https://www.netflix.com

Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 280 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm recently began introducing ad-supported subscription plans, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.