Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Netflix Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Netflix Inc. debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Netflix Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Netflix Inc. debt to capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Netflix Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Netflix Inc. debt to assets ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Netflix Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Netflix Inc. financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Netflix Inc. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Netflix Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity
Netflix Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 399,844) | —) | 699,823) | 499,878) | —) | |
| Long-term debt | 14,143,417) | 14,353,076) | 14,693,072) | 15,809,095) | 14,759,260) | |
| Total debt | 14,543,261) | 14,353,076) | 15,392,895) | 16,308,973) | 14,759,260) | |
| Stockholders’ equity | 20,588,313) | 20,777,401) | 15,849,248) | 11,065,240) | 7,582,157) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.71 | 0.69 | 0.97 | 1.47 | 1.95 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Alphabet Inc. | 0.05 | 0.06 | 0.06 | 0.07 | 0.02 | |
| Comcast Corp. | 1.17 | 1.17 | 0.99 | 1.15 | 1.24 | |
| Meta Platforms Inc. | 0.12 | 0.08 | 0.00 | 0.00 | 0.00 | |
| Walt Disney Co. | 0.47 | 0.51 | 0.62 | 0.71 | 0.53 | |
| Debt to Equity, Sector | ||||||
| Media & Entertainment | 0.30 | 0.32 | 0.31 | 0.36 | 0.35 | |
| Debt to Equity, Industry | ||||||
| Communication Services | 0.62 | 0.65 | 0.65 | 0.67 | 0.62 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 14,543,261 ÷ 20,588,313 = 0.71
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Netflix Inc. debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Netflix Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 399,844) | —) | 699,823) | 499,878) | —) | |
| Long-term debt | 14,143,417) | 14,353,076) | 14,693,072) | 15,809,095) | 14,759,260) | |
| Total debt | 14,543,261) | 14,353,076) | 15,392,895) | 16,308,973) | 14,759,260) | |
| Current operating lease liabilities (included in Accrued expenses and other liabilities) | 383,312) | 355,985) | 315,189) | 256,222) | 190,622) | |
| Non-current operating lease liabilities (included in Other non-current liabilities) | 2,046,801) | 2,222,503) | 2,408,486) | 1,945,631) | 1,422,612) | |
| Total debt (including operating lease liability) | 16,973,374) | 16,931,564) | 18,116,570) | 18,510,826) | 16,372,494) | |
| Stockholders’ equity | 20,588,313) | 20,777,401) | 15,849,248) | 11,065,240) | 7,582,157) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.82 | 0.81 | 1.14 | 1.67 | 2.16 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.11 | 0.12 | 0.11 | 0.13 | 0.08 | |
| Comcast Corp. | 1.25 | 1.26 | 1.06 | 1.20 | 1.29 | |
| Meta Platforms Inc. | 0.25 | 0.22 | 0.12 | 0.09 | 0.11 | |
| Walt Disney Co. | 0.51 | 0.55 | 0.66 | 0.75 | 0.53 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.37 | 0.39 | 0.38 | 0.43 | 0.41 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.76 | 0.80 | 0.79 | 0.80 | 0.74 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 16,973,374 ÷ 20,588,313 = 0.82
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Netflix Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Capital
Netflix Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 399,844) | —) | 699,823) | 499,878) | —) | |
| Long-term debt | 14,143,417) | 14,353,076) | 14,693,072) | 15,809,095) | 14,759,260) | |
| Total debt | 14,543,261) | 14,353,076) | 15,392,895) | 16,308,973) | 14,759,260) | |
| Stockholders’ equity | 20,588,313) | 20,777,401) | 15,849,248) | 11,065,240) | 7,582,157) | |
| Total capital | 35,131,574) | 35,130,477) | 31,242,143) | 27,374,213) | 22,341,417) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.41 | 0.41 | 0.49 | 0.60 | 0.66 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Alphabet Inc. | 0.05 | 0.06 | 0.06 | 0.06 | 0.02 | |
| Comcast Corp. | 0.54 | 0.54 | 0.50 | 0.53 | 0.55 | |
| Meta Platforms Inc. | 0.11 | 0.08 | 0.00 | 0.00 | 0.00 | |
| Walt Disney Co. | 0.32 | 0.34 | 0.38 | 0.41 | 0.35 | |
| Debt to Capital, Sector | ||||||
| Media & Entertainment | 0.23 | 0.24 | 0.24 | 0.27 | 0.26 | |
| Debt to Capital, Industry | ||||||
| Communication Services | 0.38 | 0.39 | 0.40 | 0.40 | 0.38 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,543,261 ÷ 35,131,574 = 0.41
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Netflix Inc. debt to capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Netflix Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 399,844) | —) | 699,823) | 499,878) | —) | |
| Long-term debt | 14,143,417) | 14,353,076) | 14,693,072) | 15,809,095) | 14,759,260) | |
| Total debt | 14,543,261) | 14,353,076) | 15,392,895) | 16,308,973) | 14,759,260) | |
| Current operating lease liabilities (included in Accrued expenses and other liabilities) | 383,312) | 355,985) | 315,189) | 256,222) | 190,622) | |
| Non-current operating lease liabilities (included in Other non-current liabilities) | 2,046,801) | 2,222,503) | 2,408,486) | 1,945,631) | 1,422,612) | |
| Total debt (including operating lease liability) | 16,973,374) | 16,931,564) | 18,116,570) | 18,510,826) | 16,372,494) | |
| Stockholders’ equity | 20,588,313) | 20,777,401) | 15,849,248) | 11,065,240) | 7,582,157) | |
| Total capital (including operating lease liability) | 37,561,687) | 37,708,965) | 33,965,818) | 29,576,066) | 23,954,651) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.45 | 0.45 | 0.53 | 0.63 | 0.68 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.10 | 0.10 | 0.10 | 0.11 | 0.07 | |
| Comcast Corp. | 0.56 | 0.56 | 0.52 | 0.55 | 0.56 | |
| Meta Platforms Inc. | 0.20 | 0.18 | 0.10 | 0.08 | 0.10 | |
| Walt Disney Co. | 0.34 | 0.35 | 0.40 | 0.43 | 0.35 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.27 | 0.28 | 0.28 | 0.30 | 0.29 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.43 | 0.44 | 0.44 | 0.44 | 0.43 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 16,973,374 ÷ 37,561,687 = 0.45
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Netflix Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Assets
Netflix Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 399,844) | —) | 699,823) | 499,878) | —) | |
| Long-term debt | 14,143,417) | 14,353,076) | 14,693,072) | 15,809,095) | 14,759,260) | |
| Total debt | 14,543,261) | 14,353,076) | 15,392,895) | 16,308,973) | 14,759,260) | |
| Total assets | 48,731,992) | 48,594,768) | 44,584,663) | 39,280,359) | 33,975,712) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.30 | 0.30 | 0.35 | 0.42 | 0.43 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Alphabet Inc. | 0.04 | 0.04 | 0.04 | 0.05 | 0.02 | |
| Comcast Corp. | 0.37 | 0.37 | 0.34 | 0.38 | 0.39 | |
| Meta Platforms Inc. | 0.08 | 0.06 | 0.00 | 0.00 | 0.00 | |
| Walt Disney Co. | 0.23 | 0.24 | 0.27 | 0.29 | 0.24 | |
| Debt to Assets, Sector | ||||||
| Media & Entertainment | 0.17 | 0.17 | 0.17 | 0.20 | 0.19 | |
| Debt to Assets, Industry | ||||||
| Communication Services | 0.26 | 0.27 | 0.27 | 0.27 | 0.26 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 14,543,261 ÷ 48,731,992 = 0.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Netflix Inc. debt to assets ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Netflix Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 399,844) | —) | 699,823) | 499,878) | —) | |
| Long-term debt | 14,143,417) | 14,353,076) | 14,693,072) | 15,809,095) | 14,759,260) | |
| Total debt | 14,543,261) | 14,353,076) | 15,392,895) | 16,308,973) | 14,759,260) | |
| Current operating lease liabilities (included in Accrued expenses and other liabilities) | 383,312) | 355,985) | 315,189) | 256,222) | 190,622) | |
| Non-current operating lease liabilities (included in Other non-current liabilities) | 2,046,801) | 2,222,503) | 2,408,486) | 1,945,631) | 1,422,612) | |
| Total debt (including operating lease liability) | 16,973,374) | 16,931,564) | 18,116,570) | 18,510,826) | 16,372,494) | |
| Total assets | 48,731,992) | 48,594,768) | 44,584,663) | 39,280,359) | 33,975,712) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.35 | 0.35 | 0.41 | 0.47 | 0.48 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.07 | 0.08 | 0.08 | 0.09 | 0.06 | |
| Comcast Corp. | 0.39 | 0.39 | 0.37 | 0.40 | 0.41 | |
| Meta Platforms Inc. | 0.17 | 0.15 | 0.09 | 0.07 | 0.08 | |
| Walt Disney Co. | 0.25 | 0.26 | 0.29 | 0.31 | 0.24 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.21 | 0.22 | 0.21 | 0.23 | 0.22 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.32 | 0.33 | 0.33 | 0.33 | 0.31 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 16,973,374 ÷ 48,731,992 = 0.35
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Netflix Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Netflix Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 48,731,992) | 48,594,768) | 44,584,663) | 39,280,359) | 33,975,712) | |
| Stockholders’ equity | 20,588,313) | 20,777,401) | 15,849,248) | 11,065,240) | 7,582,157) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.37 | 2.34 | 2.81 | 3.55 | 4.48 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Alphabet Inc. | 1.42 | 1.43 | 1.43 | 1.44 | 1.37 | |
| Comcast Corp. | 3.20 | 3.18 | 2.87 | 3.03 | 3.18 | |
| Meta Platforms Inc. | 1.50 | 1.48 | 1.33 | 1.24 | 1.32 | |
| Walt Disney Co. | 2.07 | 2.14 | 2.30 | 2.41 | 2.18 | |
| Financial Leverage, Sector | ||||||
| Media & Entertainment | 1.80 | 1.83 | 1.82 | 1.85 | 1.87 | |
| Financial Leverage, Industry | ||||||
| Communication Services | 2.39 | 2.45 | 2.43 | 2.45 | 2.42 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 48,731,992 ÷ 20,588,313 = 2.37
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Netflix Inc. financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
Interest Coverage
Netflix Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 5,407,990) | 4,491,924) | 5,116,228) | 2,761,395) | 1,866,916) | |
| Add: Income tax expense | 797,415) | 772,005) | 723,875) | 437,954) | 195,315) | |
| Add: Interest expense | 699,826) | 706,212) | 765,620) | 767,499) | 626,023) | |
| Earnings before interest and tax (EBIT) | 6,905,231) | 5,970,141) | 6,605,723) | 3,966,848) | 2,688,254) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 9.87 | 8.45 | 8.63 | 5.17 | 4.29 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Alphabet Inc. | 279.30 | 200.80 | 263.24 | 357.16 | 397.25 | |
| Comcast Corp. | 6.01 | 3.38 | 5.46 | 4.07 | 4.72 | |
| Meta Platforms Inc. | 107.34 | 164.74 | 3,153.27 | 2,371.00 | 1,241.60 | |
| Walt Disney Co. | 3.42 | 4.41 | 2.66 | -0.06 | 12.19 | |
| Interest Coverage, Sector | ||||||
| Media & Entertainment | 22.91 | 18.95 | 24.80 | 14.53 | 15.86 | |
| Interest Coverage, Industry | ||||||
| Communication Services | 10.21 | 8.50 | 11.90 | 6.51 | 7.88 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,905,231 ÷ 699,826 = 9.87
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Netflix Inc. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Fixed Charge Coverage
Netflix Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 5,407,990) | 4,491,924) | 5,116,228) | 2,761,395) | 1,866,916) | |
| Add: Income tax expense | 797,415) | 772,005) | 723,875) | 437,954) | 195,315) | |
| Add: Interest expense | 699,826) | 706,212) | 765,620) | 767,499) | 626,023) | |
| Earnings before interest and tax (EBIT) | 6,905,231) | 5,970,141) | 6,605,723) | 3,966,848) | 2,688,254) | |
| Add: Operating lease costs | 638,678) | 608,428) | 542,570) | 440,511) | 447,889) | |
| Earnings before fixed charges and tax | 7,543,909) | 6,578,569) | 7,148,293) | 4,407,359) | 3,136,143) | |
| Interest expense | 699,826) | 706,212) | 765,620) | 767,499) | 626,023) | |
| Operating lease costs | 638,678) | 608,428) | 542,570) | 440,511) | 447,889) | |
| Fixed charges | 1,338,504) | 1,314,640) | 1,308,190) | 1,208,010) | 1,073,912) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.64 | 5.00 | 5.46 | 3.65 | 2.92 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Alphabet Inc. | 18.67 | 18.42 | 25.06 | 16.92 | 17.10 | |
| Comcast Corp. | 4.87 | 2.82 | 4.48 | 3.47 | 4.00 | |
| Meta Platforms Inc. | 19.69 | 15.18 | 31.41 | 24.62 | 22.41 | |
| Walt Disney Co. | 2.71 | 3.25 | 2.07 | 0.32 | 6.94 | |
| Fixed Charge Coverage, Sector | ||||||
| Media & Entertainment | 10.79 | 9.06 | 12.40 | 7.98 | 8.67 | |
| Fixed Charge Coverage, Industry | ||||||
| Communication Services | 5.36 | 4.25 | 5.95 | 3.73 | 4.58 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,543,909 ÷ 1,338,504 = 5.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Netflix Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |