Netflix is growing its debt levels, as it plans to spend on more original content, productions, hiring, and other acquisitions. As of September 30, Netflix had ~$3.1 billion in cash and cash equivalents and ~$8.3 billion in long-term debt. The company also raised $2 billion in new debt in October. Netflix’s debt-to-equity ratio was 166.4%. The company’s debt-to-total capital ratio was 0.63 at the end of the third quarter, meaning it had taken on more long-term debt than its peers.
Despite Netflix’s being a highly leveraged company, Mark Mahaney, an analyst at RBC Capital Markets, believes that its leverage ratios are reasonably good according to traditional media standards.
View more information: https://marketrealist.com/2019/01/why-rising-debt-isnt-a-concern-for-netflix/