Stock Analysis on Net
Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

$24.99

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

Netflix Inc., net profit margin, long-term trends, calculation

Microsoft Excel
Net profit margin = 100 × Net income1 ÷ Revenues1
Dec 31, 2024 = 100 × ÷
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Dec 31, 2020 = 100 × ÷
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Dec 31, 2018 = 100 × ÷
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Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in thousands

The financial data reveals several notable trends over the periods analyzed. The revenue of the company has demonstrated a strong upward trajectory, growing consistently from approximately 682 million USD in 2005 to over 39 billion USD projected in 2024. This indicates sustained expansion in sales or service income throughout the years.

Regarding net income, there is a clear overall growth pattern, although with some fluctuations. Starting at around 42 million USD in 2005, net income rose steadily up to 226 million USD in 2011, followed by a significant drop seen in 2012 to approximately 17 million USD. After this decline, net income recovered strongly, reaching peaks of over 5 billion USD by 2021 and further rising to 8.7 billion USD forecasted for 2024. The temporary decrease observed around 2012 may suggest specific challenges or investments during that year.

The net profit margin, which reflects profitability relative to revenues, shows variability but an encouraging long-term improvement trend. Margins hovered around low single-digit percentages in the early years (between 4.9% and 7.4%), with a sharp dip in 2012 to below 1%, aligning with the net income drop. Subsequently, the margin increased steadily, reaching a high of over 22% projected for 2024. This implies enhanced operational efficiency or a higher value capture in later years.

Revenues
Consistent growth across all periods, expanding by nearly 57 times from 2005 to 2024 projections.
Net Income
General upward trend with a distinct dip in 2012; dramatic growth post-2012, indicating recovery and strong profitability.
Net Profit Margin
Fluctuated initially, with a low point in 2012, followed by steady improvement leading to robust profitability margins in recent periods.

In summary, the company's financial metrics demonstrate sustained revenue expansion coupled with improving profitability, notwithstanding short-term setbacks. The strengthening net profit margin toward the end of the period suggests a more efficient cost structure or higher-margin operations supporting the growth in net income. The 2012 financial year stands out as an anomaly that impacted both profitability and net income but was successfully overcome in subsequent years.

Comparison to Competitors

Netflix Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel
Netflix Inc. Alphabet Inc. Comcast Corp. Meta Platforms Inc. Take-Two Interactive Software Inc. Walt Disney Co.
Dec 31, 2024
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Dec 31, 2022
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Dec 31, 2018
Dec 31, 2017
Dec 31, 2016
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Dec 31, 2014
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Dec 31, 2012
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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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

Comparison to Sector (Media & Entertainment)

Netflix Inc., net profit margin, long-term trends, comparison to sector (media & entertainment)

Microsoft Excel
Netflix Inc. Media & Entertainment
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
Dec 31, 2020
Dec 31, 2019
Dec 31, 2018
Dec 31, 2017
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Dec 31, 2007
Dec 31, 2006
Dec 31, 2005

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

Comparison to Industry (Communication Services)

Netflix Inc., net profit margin, long-term trends, comparison to industry (communication services)

Microsoft Excel
Netflix Inc. Communication Services
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
Dec 31, 2020
Dec 31, 2019
Dec 31, 2018
Dec 31, 2017
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
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Dec 31, 2006
Dec 31, 2005

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).