Analysis of Debt
Total Debt (Carrying Amount)
Netflix Inc., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals evolving trends in the company's debt structure over the five-year period from 2020 to 2024.
- Short-term Debt
- Short-term debt showed an overall increasing trend from 2020 to 2024, despite some volatility. It started at approximately 499.9 million US dollars in 2020, peaking at about 699.8 million in 2021. Data for 2022 is missing, but the value decreased notably to around 399.8 million in 2023 before sharply rising to 1.78 billion in 2024, representing the highest level across the observed timeframe. This pattern indicates fluctuations in immediate borrowing needs with a significant jump at the end of the latest year.
- Long-term Debt
- Long-term debt exhibited a consistent declining trend throughout the period. Beginning at roughly 15.8 billion US dollars in 2020, the amount gradually decreased each year to 13.8 billion by 2024. This steady reduction suggests ongoing repayment or refinancing strategies to lower longer-term liabilities.
- Total Senior Notes (Carrying Amount)
- The total senior notes carrying amount decreased from approximately 16.3 billion US dollars in 2020 to about 14.4 billion in 2022. However, unlike long-term debt, it rebounded starting in 2023, increasing to roughly 14.5 billion and further to 15.6 billion in 2024. This rebound in the carrying amount may reflect issuance of new senior notes or changes in fair value adjustments, affecting the overall level of senior debt instruments held.
In summary, while long-term debt has been steadily reduced, short-term debt and total senior notes have demonstrated more variability, with notable increases in the latest year. This may point to a strategic shift toward shorter-term liabilities or increased reliance on senior notes financing as part of the company’s capital structure management.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Total senior Notes (fair value) | 15,948,000) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.02 |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.76%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.88% | 801,000) | 47,059) | |
| 3.00% | 487,000) | 14,610) | |
| 3.63% | 497,000) | 18,016) | |
| 4.38% | 998,000) | 43,663) | |
| 3.63% | 1,375,000) | 49,844) | |
| 4.88% | 1,607,000) | 78,341) | |
| 5.88% | 1,970,000) | 115,738) | |
| 4.63% | 1,220,000) | 56,425) | |
| 6.38% | 848,000) | 54,060) | |
| 3.88% | 1,293,000) | 50,104) | |
| 5.38% | 918,000) | 49,343) | |
| 3.63% | 1,174,000) | 42,558) | |
| 4.88% | 996,000) | 48,555) | |
| 4.90% | 982,000) | 48,118) | |
| 5.40% | 782,000) | 42,228) | |
| Total | 15,948,000) | 758,660) | |
| 4.76% | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 758,660 ÷ 15,948,000 = 4.76%