Stock Analysis on Net
Stock Analysis on Net
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Netflix Inc. (NASDAQ:NFLX)

Cash Flow Statement

Beginner level

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Netflix Inc., consolidated cash flow statement

US$ in thousands

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income 1,866,916  1,211,242  558,929  186,678  122,641 
Additions to streaming content assets (13,916,683) (13,043,437) (9,805,763) (8,653,286) (5,771,652)
Change in streaming content liabilities (694,011) 999,880  900,006  1,772,650  1,162,413 
Amortization of streaming content assets 9,216,247  7,532,088  6,197,817  4,788,498  3,405,382 
Depreciation and amortization of property, equipment and intangibles 103,579  83,157  71,911  57,528  62,283 
Stock-based compensation expense 405,376  320,657  182,209  173,675  124,725 
Excess tax benefits from stock-based compensation —  —  —  (65,121) (80,471)
Other non-cash items 228,230  81,640  117,864  119,861  111,008 
Foreign currency remeasurement (gain) loss on long-term debt (45,576) (73,953) 140,790  —  — 
Deferred taxes (94,443) (85,520) (208,688) (46,847) (58,655)
Other current assets (252,113) (200,192) (234,090) 46,970  18,693 
Accounts payable 96,063  199,198  74,559  32,247  51,615 
Accrued expenses and other liabilities 157,778  150,422  114,337  68,706  48,810 
Deferred revenue 163,846  142,277  177,974  96,751  72,135 
Other non-current assets and liabilities (122,531) 2,062  (73,803) (52,294) (18,366)
Changes in operating assets and liabilities 43,043  293,767  58,977  192,380  172,887 
Adjustments to reconcile net income to net cash used in operating activities (4,754,238) (3,891,721) (2,344,877) (1,660,662) (872,080)
Net cash used in operating activities (2,887,322) (2,680,479) (1,785,948) (1,473,984) (749,439)
Purchases of property and equipment (253,035) (173,946) (173,302) (107,653) (91,248)
Change in other assets (134,029) (165,174) (60,409) (78,118) (79,870)
Purchases of short-term investments —  —  (74,819) (187,193) (371,915)
Proceeds from sale of short-term investments —  —  320,154  282,484  259,079 
Proceeds from maturities of short-term investments —  —  22,705  140,245  104,762 
Net cash (used in) provided by investing activities (387,064) (339,120) 34,329  49,765  (179,192)
Proceeds from issuance of debt 4,469,306  3,961,852  3,020,510  1,000,000  1,500,000 
Debt issuance costs (36,134) (35,871) (32,153) (10,700) (17,629)
Proceeds from issuance of common stock 72,490  124,502  88,378  36,979  77,980 
Excess tax benefits from stock-based compensation —  —  —  65,121  80,471 
Other financing activities —  (1,956) 255  230  (545)
Net cash provided by financing activities 4,505,662  4,048,527  3,076,990  1,091,630  1,640,277 
Effect of exchange rate changes on cash, cash equivalents and restricted cash 469  (39,682) 29,848  (9,165) (15,924)
Net increase (decrease) in cash, cash equivalents and restricted cash 1,231,745  989,246  1,355,219  (341,754) 695,722 
Cash, cash equivalents and restricted cash, beginning of year 3,812,041  2,822,795  1,467,576  1,809,330  1,113,608 
Cash, cash equivalents and restricted cash, end of year 5,043,786  3,812,041  2,822,795  1,467,576  1,809,330 

Based on: 10-K (filing date: 2020-01-29), 10-K (filing date: 2019-01-29), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-27), 10-K (filing date: 2016-01-28).

Cash flow statement item Description The company
Net cash used in operating activities Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. Netflix Inc.’s net cash used in operating activities decreased from 2017 to 2018 and from 2018 to 2019.
Net cash (used in) provided by investing activities Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. Netflix Inc.’s net cash (used in) provided by investing activities decreased from 2017 to 2018 and from 2018 to 2019.
Net cash provided by financing activities Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. Netflix Inc.’s net cash provided by financing activities increased from 2017 to 2018 and from 2018 to 2019.