Common-Size Income Statement
Paying user area
Try for free
Netflix Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Netflix Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Netflix Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 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).
The common-size income statement reveals several noteworthy trends over the five-year period. Revenues are consistently represented as 100%, allowing for a clear view of expense and profit margins as percentages of sales. A significant improvement in profitability is observed from 2021 to 2025, driven by both cost management and revenue dynamics.
- Gross Profit
- Gross profit as a percentage of revenue initially decreased from 41.64% in 2021 to 39.37% in 2022, before recovering and steadily increasing to 48.49% in 2025. This indicates improving efficiency in managing the cost of revenues, particularly in the later years of the period.
- Operating Expenses
- Sales and marketing expenses demonstrate a consistent, albeit modest, decline as a percentage of revenue, moving from 8.57% in 2021 to 7.31% in 2025. Technology and development expenses fluctuated, peaking at 8.58% in 2022, then decreasing to 7.51% in 2025. General and administrative expenses also show a downward trend, decreasing from 4.55% to 4.18% over the same period. These reductions in operating expenses contribute to the overall improvement in operating income.
- Operating Income
- Operating income as a percentage of revenue experienced a dip from 20.86% in 2021 to 17.82% in 2022, but then exhibited substantial growth, reaching 29.49% in 2025. This improvement is a direct result of the combined effects of increasing gross profit margins and decreasing operating expenses.
- Net Income
- Net income as a percentage of revenue mirrors the trend in operating income, declining to 14.21% in 2022 before rising significantly to 24.30% in 2025. This indicates a strong improvement in overall profitability. The provision for income taxes also increased as a percentage of revenue, from 2.44% to 3.85%, likely due to increased profitability.
- Interest Expense & Other Income
- Interest expense consistently decreased as a percentage of revenue, from 2.58% in 2021 to 1.72% in 2025, suggesting improved debt management or a reduction in debt levels. Interest and other income (expense) fluctuated, showing a negative value in 2023 before becoming positive again. Other income (expense) remained relatively stable, with a slight downward trend.
In summary, the financial performance demonstrates a clear positive trajectory. While 2022 showed a slight dip in key profitability metrics, the subsequent years reveal a consistent and substantial improvement in gross profit, operating income, and net income margins. This suggests effective cost control measures and potentially increased revenue generation efficiency.