Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 7th International Conference on Economic Management and Green Development
Series Vol. 30 , 10 November 2023
Open
Access | Article
Analyzing the Debt’s Effects on Netflix’s Liquidity and Costs
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Abstract
Netflix has issued substantial sums of debt in 2018 and 2019 in order to expand its content library and deal with the intense rivalry that exists in the streaming media sector. The objective of this paper was to investigate the ways in which Netflix's liquidity and costs of financing are impacted by the use of long-term debt financing. The annual reports that Netflix produced from 2017 through 2022 were scrutinized in great detail. According to the findings of this research, Netflix did not experience any liquidity issues in 2018 and 2019 as a result of its long-term debt financing. Therefore, organizations that provide streaming media may utilize long-term debt financing in order to make short-term investments if they managed the due dates of their loan in an appropriate manner. Meanwhile, based on the findings of this study, Netflix was able to reduce the costs associated with debt by issuing debt mostly in euros and using fixed interest rates. When interest rates are forecasted to rise, it may be beneficial for businesses to cut their debt costs by taking on debt denominated primarily in euros and offering fixed interest rates.
Keywords
Netflix, long-term debt, liquidity, costs of debt
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 7th International Conference on Economic Management and Green Development
- ISBN (Print)
- 978-1-83558-081-3
- ISBN (Online)
- 978-1-83558-082-0
- Published Date
- 10 November 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/30/20231451
- Copyright
- 10 November 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited