Netflix Inc. (NASDAQ:NFLX)

Total assets exhibited an overall increasing trend from 2021 to 2025. However, adjusted total assets present a more nuanced picture, with periods of growth and contraction. A comparison of the two figures reveals adjustments consistently reducing the reported total asset value each year.

Overall Trend in Total Assets

Total assets increased from US$44,584,663 thousand in 2021 to US$55,596,993 thousand in 2025, representing a cumulative growth of approximately 24.7%. The largest year-over-year increase occurred between 2023 and 2024, with an addition of US$4,899,382 thousand.

Trend in Adjusted Total Assets

Adjusted total assets began at US$44,436,568 thousand in 2021. While generally following an upward trajectory, growth was not consistent. A decrease was observed between 2022 and 2023, falling from US$48,333,227 thousand to US$47,731,232 thousand. Adjusted total assets concluded at US$53,534,915 thousand in 2025, representing a cumulative growth of approximately 20.4% from 2021.

Difference Between Total and Adjusted Assets

The difference between total assets and adjusted total assets widened over the period. In 2021, the adjustment amounted to US$148,095 thousand. By 2025, this difference had grown to US$2,062,078 thousand. This suggests that the nature or magnitude of the adjustments increased over time. The consistent application of these adjustments indicates a systematic approach to asset valuation.

Growth Rate Comparison

The growth rate of adjusted total assets consistently lagged behind that of total assets. This implies that the adjustments are impacting the reported growth of the asset base. The disparity in growth rates suggests that the adjustments are removing assets, or revaluing them downwards, at a rate that is not fully offset by new asset acquisitions or appreciation.

In summary, while the company’s reported total assets increased steadily, the adjusted total assets demonstrate a more moderate growth pattern, influenced by consistent downward adjustments. Further investigation into the nature of these adjustments would be necessary to fully understand their impact on the financial position.

Current liabilities exhibited fluctuations over the five-year period. Initially, a decrease is noted from 2021 to 2022, followed by increases in subsequent years. Adjusted current liabilities demonstrate a similar pattern, though the magnitude of change differs.

Overall Trends

From 2021 to 2022, both reported and adjusted current liabilities decreased. Reported current liabilities declined from US$8,488,966 thousand to US$7,930,974 thousand, while adjusted current liabilities decreased from US$7,279,624 thousand to US$6,666,313 thousand. Following 2022, both metrics increased consistently through 2025. Reported current liabilities rose to US$10,980,930 thousand by 2025, and adjusted current liabilities reached US$9,205,200 thousand.

Magnitude of Adjustment

The difference between reported and adjusted current liabilities remained relatively consistent throughout the period. In 2021, the adjustment amounted to US$1,209,342 thousand. This difference varied slightly, ranging from US$1,264,661 thousand in 2022 to US$1,570,813 thousand in 2024, and concluding at US$1,775,730 thousand in 2025. This suggests a systematic reclassification or refinement of current liability categorization.

Growth Rates

The largest percentage increase in reported current liabilities occurred between 2023 and 2024, with a rise of approximately 21.4%. The increase from 2024 to 2025 was more moderate, at roughly 2.1%. Adjusted current liabilities experienced a similar pattern, with a substantial increase between 2023 and 2024 (approximately 24.3%) and a smaller increase between 2024 and 2025 (approximately 0.2%).

The consistent adjustment to current liabilities warrants further investigation to understand the nature of these adjustments and their impact on the company’s short-term financial position. The accelerating growth in both reported and adjusted current liabilities in recent years may indicate increased short-term obligations or changes in working capital management.

The reported total liabilities exhibited a fluctuating pattern over the five-year period. Initially, a decrease is observed from 2021 to 2022, followed by a slight increase in 2023. Subsequent years demonstrate further increases, though at a decelerating rate. However, adjusted total liabilities present a different trend, showing a consistent decline from 2021 to 2023, followed by modest increases in 2024 and 2025, but remaining below the initial 2021 level.

Total Liabilities Trend

Total liabilities decreased from US$28,735,415 thousand in 2021 to US$27,817,367 thousand in 2022, representing a reduction of approximately 3.18%. A subsequent increase to US$28,143,679 thousand occurred in 2023, followed by further increases to US$28,886,807 thousand in 2024 and US$28,981,505 thousand in 2025. The growth rate slowed between 2023 and 2025.

Adjusted Total Liabilities Trend

Adjusted total liabilities decreased consistently from US$27,526,073 thousand in 2021 to US$26,552,706 thousand in 2022, and further to US$26,574,500 thousand in 2023. A modest increase was then noted in 2024, reaching US$27,253,392 thousand, and continued with a smaller increase to US$27,098,500 thousand in 2025. Despite these increases, the adjusted total liabilities remained below the 2021 level throughout the period.

Difference Between Reported and Adjusted Liabilities

The difference between total liabilities and adjusted total liabilities widened from US$1,209,342 thousand in 2021 to US$1,264,661 thousand in 2022. This difference narrowed in 2023 to US$1,569,179 thousand, then increased again to US$1,633,415 thousand in 2024 and US$1,882,905 thousand in 2025. This suggests that the adjustments made to total liabilities are becoming more substantial over time.

The divergence between the trends of total and adjusted liabilities indicates that adjustments are significantly impacting the reported financial position. Further investigation into the nature of these adjustments would be necessary to understand their underlying causes and potential implications.

Stockholders’ equity exhibited an overall upward trajectory between 2021 and 2025. However, the rate of increase was not consistent across the period. A comparison with adjusted stockholders’ equity reveals a consistent difference throughout the observed timeframe, suggesting systematic adjustments are being made.

Overall Trend in Stockholders’ Equity

Stockholders’ equity increased from US$15,849,248 thousand in 2021 to US$26,615,488 thousand in 2025, representing a cumulative growth of approximately 67.8%. The most substantial year-over-year increase occurred between 2021 and 2022, with an addition of US$4,928,153 thousand. Growth slowed in 2023, showing a slight decrease before resuming an upward trend in 2024 and 2025.

Overall Trend in Adjusted Stockholders’ Equity

Adjusted stockholders’ equity mirrored the trend of reported stockholders’ equity, increasing from US$16,910,495 thousand in 2021 to US$26,436,415 thousand in 2025, a cumulative growth of approximately 56.0%. Similar to the reported equity, the largest year-over-year increase was observed between 2021 and 2022, adding US$4,870,026 thousand. A decrease was also noted in 2023, followed by increases in 2024 and 2025.

Difference Between Reported and Adjusted Equity

A consistent difference exists between the reported stockholders’ equity and the adjusted stockholders’ equity. In each year, the adjusted value is higher than the reported value, ranging from approximately US$1,061,247 thousand in 2021 to US$179,073 thousand in 2025. The magnitude of this difference diminished over the period, indicating a potential convergence or a change in the nature of the adjustments being applied.

The decrease in stockholders’ equity in 2023 warrants further investigation. While both reported and adjusted figures declined, the subsequent recovery in 2024 and 2025 suggests the 2023 decline may have been attributable to specific, potentially temporary, factors. The consistent adjustments to stockholders’ equity suggest the presence of items impacting the reported value that are being addressed through these adjustments.

The capitalization structure of the entity under review demonstrates notable shifts between 2021 and 2025. Reported total debt initially decreased from 2021 to 2022, then experienced incremental increases in 2023 and 2024 before declining again in 2025. Stockholders’ equity consistently increased throughout the period, exhibiting the most substantial growth between 2021 and 2022. Consequently, reported total capital also increased over the five-year span, though the rate of increase varied annually.

Adjustments to the capitalization structure reveal a different picture. Adjusted total debt began higher than reported total debt in 2021, and while it fluctuated, remained consistently above the reported value throughout the period. Adjusted stockholders’ equity also started higher than the reported value in 2021 and followed a similar growth trajectory to reported equity. Adjusted total capital consistently exceeded reported total capital, indicating the adjustments collectively increase the overall capitalization figure.

Debt Trends

Reported total debt decreased by approximately 6.7% from 2021 to 2022, then increased by 1.3% in 2023 and 7.5% in 2024, before decreasing by 6.5% in 2025. Adjusted total debt decreased by 9.2% from 2021 to 2022, increased by 0.8% in 2023, 6.2% in 2024, and decreased by 5.7% in 2025. The adjustments consistently show a higher debt level than reported, suggesting potential off-balance sheet financing or different accounting treatments are being accounted for.

Equity Trends

Reported stockholders’ equity increased by 37.7% from 2021 to 2022, then decreased by 1.9% in 2023, and increased by 21.6% in 2024 and 7.2% in 2025. Adjusted stockholders’ equity mirrored this trend, with a 28.9% increase from 2021 to 2022, a 2.3% decrease in 2023, and increases of 18.5% in 2024 and 5.1% in 2025. The adjustments to equity are smaller in magnitude than the adjustments to debt, but consistently increase the equity value.

Capital Structure Composition

In 2021, reported total debt represented approximately 49.2% of reported total capital, while stockholders’ equity comprised the remaining 50.8%. By 2025, the proportion of reported debt had decreased to 34.3% of reported total capital, with equity increasing to 65.7%. The adjusted figures show a higher proportion of debt to capital throughout the period, with debt representing approximately 51.6% of adjusted total capital in 2021 and 39.1% in 2025. This suggests the adjustments increase the relative importance of debt in the capital structure.

The consistent difference between reported and adjusted figures indicates the application of specific adjustments to both debt and equity. The magnitude of these adjustments, particularly to debt, warrants further investigation to understand the underlying reasons and their impact on the overall financial position.

Revenues and adjusted revenues demonstrate a consistent upward trend over the five-year period from 2021 to 2025. While both metrics move in the same direction, a consistent difference exists between the reported revenues and the adjusted revenues.

Overall Trend

Both revenue streams exhibit growth annually. Revenues increased from US$29,697,844 thousand in 2021 to US$45,183,036 thousand in 2025, representing a cumulative growth of approximately 52.2%. Adjusted revenues followed a similar pattern, rising from US$29,789,194 thousand in 2021 to US$45,437,953 thousand in 2025, a cumulative growth of approximately 52.5%.

Year-over-Year Growth

The year-over-year growth rates for both revenue streams are generally positive. Growth appears to accelerate from 2023 to 2024, with a more substantial increase in absolute terms. The increase from 2024 to 2025 is also significant, continuing the accelerated growth pattern. Specific growth rates would require further calculation, but the magnitude of the increases is visually apparent.

Revenue Adjustments

Adjusted revenues consistently exceed reported revenues in each year. The difference between the two metrics remains relatively stable in absolute terms, increasing from approximately US$91,350 thousand in 2021 to approximately US$254,917 thousand in 2025. This suggests a consistent application of adjustments that incrementally add to the initially reported revenue figure. The nature of these adjustments is not apparent from the presented information, but their consistent application warrants further investigation.

The consistent positive difference between revenues and adjusted revenues suggests the presence of specific accounting adjustments that systematically increase the reported revenue figure. The accelerating growth in both revenue streams, particularly from 2023 onwards, indicates a period of increased business activity or potentially changes in revenue recognition policies.

Reported net income demonstrates a fluctuating pattern over the five-year period. Initial decline is followed by substantial growth. Adjusted net income mirrors this trend, though with differing magnitudes of change.

Net Income Trend

Net income decreased from US$5,116,228 thousand in 2021 to US$4,491,924 thousand in 2022, representing a decline of approximately 13.7%. A subsequent increase occurred in 2023, with net income reaching US$5,407,990 thousand. This growth accelerated significantly in 2024 and 2025, with net income rising to US$8,711,631 thousand and US$10,981,201 thousand respectively. The 2024-2025 growth represents a cumulative increase of approximately 26.0%.

Adjusted Net Income Trend

Adjusted net income also experienced a decrease between 2021 and 2022, falling from US$5,322,204 thousand to US$4,235,905 thousand, a decrease of roughly 20.2%. Similar to net income, adjusted net income increased in 2023 to US$5,036,681 thousand. The growth trend continued into 2024 and 2025, reaching US$8,784,212 thousand and US$9,844,474 thousand respectively. The 2024-2025 growth represents a cumulative increase of approximately 12.2%.

Relationship Between Net and Adjusted Income

In 2021, adjusted net income exceeded reported net income by US$205,976 thousand. This difference narrowed in 2022, with adjusted net income being US$256,019 thousand below reported net income. In 2023, adjusted net income was US$371,309 thousand below reported net income. The gap narrowed again in 2024, with adjusted net income exceeding reported net income by US$72,581 thousand. This trend continued in 2025, with adjusted net income being US$1,136,727 thousand below reported net income. The fluctuations suggest the nature and magnitude of adjustments impacting net income are changing over time.

The divergence between reported and adjusted net income indicates the presence of recurring non-cash or unusual items that are being added back or subtracted to arrive at the adjusted figure. The increasing net income in the later years, coupled with a more moderate increase in adjusted net income, suggests that a growing portion of the reported income is attributable to these adjustments.