Stock Analysis on Net
Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

Common-Size Balance Sheet: Assets 

Netflix Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents 14.55 14.60 10.59 13.52 20.89
Short-term investments 3.32 0.04 1.88 0.00 0.00
Trade receivables 2.49 2.64 2.03 1.80 1.56
Prepaid expenses 0.81 0.84 0.81 0.73 0.52
Other 3.26 2.22 3.76 2.05 1.89
Other current assets 6.56% 5.71% 6.60% 4.58% 3.96%
Current assets 24.43% 20.35% 19.07% 18.10% 24.85%
Licensed content, net 23.16 26.11 26.20 30.95 35.00
Released, less amortization 18.93 20.20 18.75 15.43 14.79
In production 17.37 16.92 21.11 20.72 12.29
In development and pre-production 1.05 1.73 1.31 2.26 2.54
Produced content, net 37.35% 38.86% 41.17% 38.40% 29.62%
Content assets, net 60.51% 64.96% 67.37% 69.35% 64.62%
Property and equipment, net 2.97 3.06 2.88 2.97 2.44
Other non-current assets 12.09 11.62 10.69 9.58 8.08
Non-current assets 75.57% 79.65% 80.93% 81.90% 75.15%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2024-12-31), 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).

The composition of assets has shifted considerably over the five-year period. A notable trend is the decreasing proportion of content assets relative to total assets, while current assets have shown an overall increase. Within current assets, cash and cash equivalents experienced fluctuations, while other current assets consistently grew as a percentage of the total.

Liquidity & Current Assets
Current assets as a percentage of total assets decreased from 24.85% in 2020 to a low of 18.10% in 2021, then increased to 24.43% in 2024. This suggests fluctuating short-term liquidity. Cash and cash equivalents decreased from 20.89% in 2020 to 10.59% in 2022, before recovering to 14.55% and 14.60% in 2023 and 2024 respectively. Short-term investments were negligible until 2023, increasing to 3.32% in 2024. Trade receivables and prepaid expenses exhibited modest, consistent growth throughout the period. Other current assets demonstrated the most consistent growth, rising from 3.96% to 6.56% of total assets.
Content Assets
Content assets, net, initially comprised a substantial portion of total assets (64.62% in 2020), peaking at 69.35% in 2021. However, this proportion has steadily declined to 60.51% in 2024. Within content assets, licensed content decreased from 35.00% to 23.16% of total assets. Produced content increased from 29.62% to a high of 41.17% in 2022, then decreased to 37.35% in 2024. The 'In production' category experienced a significant increase from 12.29% in 2020 to 21.11% in 2022, followed by a decrease to 17.37% in 2024. 'In development and pre-production' consistently represented a smaller portion, declining from 2.54% to 1.05%.
Non-Current Assets
Non-current assets represented the majority of total assets throughout the period, although their proportion decreased from 75.15% in 2020 to 75.57% in 2024. Property and equipment, net, remained relatively stable, fluctuating between 2.44% and 3.06% of total assets. Other non-current assets increased consistently from 8.08% to 12.09% over the five years.

The shift in asset allocation suggests a potential strategic change, possibly involving a greater emphasis on current liquidity and a relative reduction in investment in long-term content libraries. The growth in 'other current assets' and 'other non-current assets' warrants further investigation to understand the underlying components driving these increases.