Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Netflix Inc., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Netflix Inc. net fixed asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Netflix Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 and from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Netflix Inc. total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Netflix Inc. equity turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Net Fixed Asset Turnover
Netflix Inc., net fixed asset turnover 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) | ||||||
| Revenues | 33,723,297) | 31,615,550) | 29,697,844) | 24,996,056) | 20,156,447) | |
| Property and equipment, net | 1,491,444) | 1,398,257) | 1,323,453) | 960,183) | 565,221) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 22.61 | 22.61 | 22.44 | 26.03 | 35.66 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | 2.29 | 2.51 | 2.64 | 2.15 | 2.20 | |
| Comcast Corp. | 2.04 | 2.19 | 2.15 | 1.99 | 2.25 | |
| Meta Platforms Inc. | 1.40 | 1.47 | 2.04 | 1.88 | 2.00 | |
| Walt Disney Co. | 2.52 | 2.44 | 2.05 | 2.02 | 2.19 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | 2.10 | 2.24 | 2.42 | 2.14 | 2.27 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | 1.68 | 1.73 | 1.90 | 1.72 | 1.81 | |
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
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 33,723,297 ÷ 1,491,444 = 22.61
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Netflix Inc. net fixed asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Netflix Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Revenues | 33,723,297) | 31,615,550) | 29,697,844) | 24,996,056) | 20,156,447) | |
| Property and equipment, net | 1,491,444) | 1,398,257) | 1,323,453) | 960,183) | 565,221) | |
| Operating lease right-of-use assets, net (included in Other non-current assets) | 2,076,899) | 2,227,122) | 2,446,573) | 2,037,726) | 1,532,285) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 3,568,343) | 3,625,379) | 3,770,026) | 2,997,909) | 2,097,506) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 9.45 | 8.72 | 7.88 | 8.34 | 9.61 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Alphabet Inc. | 2.07 | 2.23 | 2.33 | 1.88 | 1.91 | |
| Comcast Corp. | 1.86 | 1.98 | 1.92 | 1.86 | 2.08 | |
| Meta Platforms Inc. | 1.23 | 1.26 | 1.69 | 1.56 | 1.58 | |
| Walt Disney Co. | 2.25 | 2.18 | 1.83 | 1.81 | 2.19 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | 1.87 | 1.97 | 2.09 | 1.87 | 2.00 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | 1.42 | 1.43 | 1.54 | 1.41 | 1.52 | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 33,723,297 ÷ 3,568,343 = 9.45
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Netflix Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 and from 2022 to 2023. |
Total Asset Turnover
Netflix Inc., total asset turnover 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) | ||||||
| Revenues | 33,723,297) | 31,615,550) | 29,697,844) | 24,996,056) | 20,156,447) | |
| Total assets | 48,731,992) | 48,594,768) | 44,584,663) | 39,280,359) | 33,975,712) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.69 | 0.65 | 0.67 | 0.64 | 0.59 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | 0.76 | 0.77 | 0.72 | 0.57 | 0.59 | |
| Comcast Corp. | 0.46 | 0.47 | 0.42 | 0.38 | 0.41 | |
| Meta Platforms Inc. | 0.59 | 0.63 | 0.71 | 0.54 | 0.53 | |
| Walt Disney Co. | 0.43 | 0.41 | 0.33 | 0.32 | 0.36 | |
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | 0.60 | 0.60 | 0.56 | 0.47 | 0.48 | |
| Total Asset Turnover, Industry | ||||||
| Communication Services | 0.48 | 0.47 | 0.45 | 0.41 | 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
Total asset turnover = Revenues ÷ Total assets
= 33,723,297 ÷ 48,731,992 = 0.69
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Netflix Inc. total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Equity Turnover
Netflix Inc., equity turnover 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) | ||||||
| Revenues | 33,723,297) | 31,615,550) | 29,697,844) | 24,996,056) | 20,156,447) | |
| Stockholders’ equity | 20,588,313) | 20,777,401) | 15,849,248) | 11,065,240) | 7,582,157) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.64 | 1.52 | 1.87 | 2.26 | 2.66 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Alphabet Inc. | 1.08 | 1.10 | 1.02 | 0.82 | 0.80 | |
| Comcast Corp. | 1.47 | 1.50 | 1.21 | 1.15 | 1.32 | |
| Meta Platforms Inc. | 0.88 | 0.93 | 0.94 | 0.67 | 0.70 | |
| Walt Disney Co. | 0.90 | 0.87 | 0.76 | 0.78 | 0.78 | |
| Equity Turnover, Sector | ||||||
| Media & Entertainment | 1.07 | 1.10 | 1.02 | 0.86 | 0.90 | |
| Equity Turnover, Industry | ||||||
| Communication Services | 1.14 | 1.16 | 1.09 | 1.00 | 1.04 | |
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
Equity turnover = Revenues ÷ Stockholders’ equity
= 33,723,297 ÷ 20,588,313 = 1.64
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Netflix Inc. equity turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |