Netflix key statistics and ratios

In fiscal 2025, Netflix had return on equity of 42.8%, an operating margin of 29.5%, debt equal to 54.3% of equity and a current ratio of 1.19. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Netflix: financial ratios, annual
Fiscal year	2009Dec 2009	2010Dec 2010	2011Dec 2011	2012Dec 2012	2013Dec 2013	2014Dec 2014	2015Dec 2015	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMSept 2026
Gross margin	35.4%	37.2%	36.3%	26.5%	28.7%	31.8%	32.3%	29.1%	31.3%	36.9%	38.3%	38.9%	41.6%	39.4%	41.5%	46.1%	48.5%	50.7%
Operating margin	11.5%	13.1%	11.7%	1.4%	5.2%	7.3%	4.5%	4.3%	7.2%	10.2%	12.9%	18.3%	20.9%	17.8%	20.6%	26.7%	29.5%	31.3%
Net margin	6.9%	7.4%	7.1%	0.5%	2.6%	4.8%	1.8%	2.1%	4.8%	7.7%	9.3%	11.0%	17.2%	14.2%	16.0%	22.3%	24.3%	29.7%
Free-cash-flow margin	16.7%	11.2%	8.4%	−0.5%	1.0%	−1.0%	−12.4%	−17.9%	−16.8%	−18.1%	−15.6%	7.7%	−0.4%	5.1%	20.5%	17.7%	20.9%	22.9%
Return on equity	58.2%	65.7%	48.5%	2.5%	10.8%	16.7%	6.0%	7.6%	17.9%	27.5%	29.1%	29.6%	38.0%	24.5%	26.1%	38.4%	42.8%	52.8%
Return on assets	17.0%	19.4%	11.2%	0.5%	2.4%	4.3%	1.4%	1.6%	3.4%	5.4%	6.2%	7.5%	12.2%	9.6%	11.1%	17.0%	20.1%	25.8%
Asset turnover	2.46	2.60	1.58	1.03	0.93	0.88	0.79	0.74	0.72	0.70	0.67	0.68	0.71	0.68	0.69	0.76	0.83	0.87
Current ratio	1.81	1.64	1.49	1.34	1.42	1.47	1.54	1.25	1.40	1.49	0.90	1.25	0.95	1.17	1.12	1.22	1.19	1.07
Debt to equity	100.4%	11.8%	5.0%	26.9%	37.5%	47.7%	106.7%	125.5%	252.6%	283.9%	273.3%	202.0%	97.1%	69.1%	70.6%	63.0%	54.3%	51.7%
Interest cover (operating income ÷ interest)	29.6x	14.5x	18.8x	2.5x	7.8x	8.0x	2.3x	2.5x	3.5x	3.8x	4.2x	6.0x	8.1x	8.0x	9.9x	14.5x	17.2x	18.2x
Effective tax rate	39.7%	39.9%	37.1%	43.7%	34.3%	23.6%	13.6%	28.3%	−15.2%	1.2%	9.5%	13.7%	12.4%	14.7%	12.9%	12.6%	13.7%	16.6%
R&D as % of revenue	6.9%	7.6%	8.1%	9.1%	8.7%	7.2%	8.4%	8.7%	8.4%	7.7%	8.3%	7.3%	7.7%	8.6%	7.9%	7.5%	7.5%	7.8%
Capital spending as % of revenue	2.8%	1.6%	1.6%	1.1%	1.2%	1.3%	1.3%	1.2%	1.5%	1.1%	1.3%	2.0%	1.8%	1.3%	1.0%	1.1%	1.5%	1.9%
Free cash flow ÷ net income	240.9%	150.8%	118.5%	−109.0%	38.9%	−20.0%	−685.5%	−847.3%	−350.5%	−235.7%	−168.2%	69.9%	−2.6%	36.0%	128.1%	79.5%	86.2%	77.0%
Dividends and buybacks ÷ free cash flow	116.2%	86.7%	74.5%	—	0.0%	—	—	—	—	—	—	0.0%	—	0.0%	87.3%	90.5%	96.5%	113.1%

US$ thousands unless shown otherwise. Fiscal quarters.

Netflix: financial ratios, quarterly
Quarter	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026	2026 Q3Sept 2026
Gross margin	43.7%	50.1%	51.9%	46.4%	45.9%	51.9%	51.9%	52.8%
Operating margin	22.2%	31.7%	34.1%	28.2%	24.5%	32.3%	33.4%	34.6%
Net margin	18.2%	27.4%	28.2%	22.1%	20.1%	43.1%	27.1%	28.5%
Free-cash-flow margin	13.5%	25.2%	20.5%	23.1%	15.5%	41.6%	12.1%	22.4%
Current ratio	1.22	1.20	1.34	1.33	1.19	1.41	1.14	1.07
Debt to equity	63.0%	62.5%	57.9%	55.7%	54.3%	46.1%	47.5%	51.7%
R&D as % of revenue	7.6%	7.8%	7.4%	7.4%	7.4%	7.8%	8.0%	8.0%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

4 of 7 checks passed · September 30, 2026

What it owns · $58.7bn

Short-term assets $13.2bnLonger-term assets $45.5bn

What it owes, and who funded it · $58.7bn

Short-term liabilities $12.3bnLonger-term liabilities $17.1bnShareholders' equity $29.3bn

Short-term assets cover short-term liabilities $13.2bn of assets due within a year against $12.3bn of liabilities due within a year.
Short-term assets cover long-term liabilities $13.2bn short-term assets against $17.1bn of longer-dated liabilities.
More cash than debt $8.2bn of cash against $15.1bn of debt.
Debt below 40% of shareholders' equity Debt is 52% of equity.
Debt burden no higher than five years ago Debt to equity moved from 83% to 52% over five years.
A year's operating cash flow covers at least 20% of debt $12.3bn of operating cash flow against $15.1bn of debt.
Operating profit covers interest at least five times over Operating income of $15.6bn against $857m of interest.

From Netflix's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

58 /100

Moderate moat

How hard Netflix's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 16 / 20

Net income has been a median 9.9% of total assets over 10 years.
Pricing power 10 / 20

Gross margin has been a median 39.6%, moving by 5.5 percentage points (standard deviation) across 10 years.
Durability 11 / 20

Operating margin has been a median 18.3%; its worst year was 6.9%.
Cash conversion 8 / 20

Free cash flow was positive in 7 of 10 years, at a median 2.5% of revenue.
Discipline 19 / 20

The diluted share count fell 5.5% over five years; stock-based pay has been a median 1.5% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (64 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

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Figures from Netflix's SEC filings (10-K and 10-Q), retrieved October 23, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Netflix.