Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Netflix's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was CHF825 Mil. Netflix's average total debt for the quarter that ended in Mar. 2026 was CHF11,416 Mil. Therefore, Netflix's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 7.23%.
Netflix (XSWX:NFLX) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Netflix Effective Interest Rate on Debt % Related Terms
Netflix Effective Interest Rate on Debt % Historical Data
* Premium members only.
The historical data trend for Netflix's Effective Interest Rate on Debt % 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.
XSWX:NFLX vs DIS, WBD, LYV: Effective Interest Rate on Debt % Comparison
For the Entertainment subindustry, Netflix's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Netflix's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Netflix's Effective Interest Rate on Debt % falls into.
* 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.
In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 7.23% mean?
Netflix (XSWX:NFLX) has a Effective Interest Rate on Debt % of 7.23% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Netflix and its competitors.
Is Netflix's Effective Interest Rate on Debt % too high?
Netflix's current Effective Interest Rate on Debt % is 7.23%. Overall, Netflix has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netflix's Effective Interest Rate on Debt % compare to DIS and WBD?
Netflix's Effective Interest Rate on Debt % of 7.23% can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Media - Diversified company?
A good Effective Interest Rate on Debt % depends on the Media - Diversified industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Netflix and its competitors. Netflix's current Effective Interest Rate on Debt % is 7.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netflix stock overvalued right now?
Based on GuruFocus' analysis, Netflix (XSWX:NFLX) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF77.77, compared to a current price of CHF61.89 — trading 20.4% below its estimated fair value. The current Effective Interest Rate on Debt % is 7.23%. Netflix's overall GF Score™ is 91/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Netflix (XSWX:NFLX), the current Effective Interest Rate on Debt % is 7.23% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Netflix (XSWX:NFLX) Overvalued in 2026?
Based on GuruFocus' analysis, Netflix stock appears to be undervalued.
The current stock price of CHF61.89 is trading 20.4% below its estimated GF Value™ of CHF77.77.
GuruFocus considers Netflix to be Modestly Undervalued.
Key valuation signals for XSWX:NFLX:
Effective Interest Rate on Debt %: 7.23%
GF Value™: CHF77.77 vs. price of CHF61.89 (20.4% below fair value)
No single metric tells the full story. See the XSWX:NFLX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
91GF Score
Get the complete analysis for XSWX:NFLX
Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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