Stock Analysis on Net
Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Netflix Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.69 0.65 0.67 0.64 0.59
Adjusted 0.71 0.66 0.67 0.65 0.61
Liquidity Ratio
Current Ratio
Reported 1.12 1.17 0.95 1.25 0.90
Adjusted 1.34 1.39 1.11 1.46 1.04
Solvency Ratios
Debt to Equity
Reported 0.71 0.69 0.97 1.47 1.95
Adjusted 0.80 0.78 1.07 1.60 2.09
Debt to Capital
Reported 0.41 0.41 0.49 0.60 0.66
Adjusted 0.45 0.44 0.52 0.61 0.68
Financial Leverage
Reported 2.37 2.34 2.81 3.55 4.48
Adjusted 2.26 2.22 2.63 3.34 4.24
Profitability Ratios
Net Profit Margin
Reported 16.04% 14.21% 17.23% 11.05% 9.26%
Adjusted 14.86% 13.37% 17.87% 12.28% 9.51%
Return on Equity (ROE)
Reported 26.27% 21.62% 32.28% 24.96% 24.62%
Adjusted 23.81% 19.45% 31.47% 26.67% 24.62%
Return on Assets (ROA)
Reported 11.10% 9.24% 11.48% 7.03% 5.49%
Adjusted 10.55% 8.76% 11.98% 7.99% 5.80%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Netflix Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Netflix Inc. adjusted current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Netflix Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Netflix Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Netflix Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Netflix Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Netflix Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Netflix Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Netflix Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Revenues 33,723,297 31,615,550 29,697,844 24,996,056 20,156,447
Total assets 48,731,992 48,594,768 44,584,663 39,280,359 33,975,712
Activity Ratio
Total asset turnover1 0.69 0.65 0.67 0.64 0.59
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted revenues2 33,901,605 31,670,869 29,789,194 25,189,303 20,320,293
Adjusted total assets3 47,731,232 48,333,227 44,436,568 38,691,268 33,317,506
Activity Ratio
Adjusted total asset turnover4 0.71 0.66 0.67 0.65 0.61

Based on: 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).

1 2023 Calculation
Total asset turnover = Revenues ÷ Total assets
= 33,723,297 ÷ 48,731,992 = 0.69

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 33,901,605 ÷ 47,731,232 = 0.71

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Netflix Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Current assets 9,918,133 9,266,473 8,069,825 9,761,580 6,178,504
Current liabilities 8,860,655 7,930,974 8,488,966 7,805,785 6,855,696
Liquidity Ratio
Current ratio1 1.12 1.17 0.95 1.25 0.90
Adjusted
Selected Financial Data (US$ in thousands)
Current assets 9,918,133 9,266,473 8,069,825 9,761,580 6,178,504
Adjusted current liabilities2 7,417,686 6,666,313 7,279,624 6,687,793 5,930,951
Liquidity Ratio
Adjusted current ratio3 1.34 1.39 1.11 1.46 1.04

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 9,918,133 ÷ 8,860,655 = 1.12

2 Adjusted current liabilities. See details »

3 2023 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 9,918,133 ÷ 7,417,686 = 1.34

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Netflix Inc. adjusted current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Total debt 14,543,261 14,353,076 15,392,895 16,308,973 14,759,260
Stockholders’ equity 20,588,313 20,777,401 15,849,248 11,065,240 7,582,157
Solvency Ratio
Debt to equity1 0.71 0.69 0.97 1.47 1.95
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 16,973,374 16,931,564 18,116,570 18,510,826 16,372,494
Adjusted stockholders’ equity3 21,156,732 21,780,521 16,910,495 11,594,141 7,848,696
Solvency Ratio
Adjusted debt to equity4 0.80 0.78 1.07 1.60 2.09

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 14,543,261 ÷ 20,588,313 = 0.71

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 16,973,374 ÷ 21,156,732 = 0.80

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Netflix Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Total debt 14,543,261 14,353,076 15,392,895 16,308,973 14,759,260
Total capital 35,131,574 35,130,477 31,242,143 27,374,213 22,341,417
Solvency Ratio
Debt to capital1 0.41 0.41 0.49 0.60 0.66
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 16,973,374 16,931,564 18,116,570 18,510,826 16,372,494
Adjusted total capital3 38,130,106 38,712,085 35,027,065 30,104,967 24,221,190
Solvency Ratio
Adjusted debt to capital4 0.45 0.44 0.52 0.61 0.68

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,543,261 ÷ 35,131,574 = 0.41

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 16,973,374 ÷ 38,130,106 = 0.45

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Netflix Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Total assets 48,731,992 48,594,768 44,584,663 39,280,359 33,975,712
Stockholders’ equity 20,588,313 20,777,401 15,849,248 11,065,240 7,582,157
Solvency Ratio
Financial leverage1 2.37 2.34 2.81 3.55 4.48
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets2 47,731,232 48,333,227 44,436,568 38,691,268 33,317,506
Adjusted stockholders’ equity3 21,156,732 21,780,521 16,910,495 11,594,141 7,848,696
Solvency Ratio
Adjusted financial leverage4 2.26 2.22 2.63 3.34 4.24

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 48,731,992 ÷ 20,588,313 = 2.37

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 47,731,232 ÷ 21,156,732 = 2.26

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Netflix Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Net income 5,407,990 4,491,924 5,116,228 2,761,395 1,866,916
Revenues 33,723,297 31,615,550 29,697,844 24,996,056 20,156,447
Profitability Ratio
Net profit margin1 16.04% 14.21% 17.23% 11.05% 9.26%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 5,036,681 4,235,905 5,322,204 3,092,627 1,932,084
Adjusted revenues3 33,901,605 31,670,869 29,789,194 25,189,303 20,320,293
Profitability Ratio
Adjusted net profit margin4 14.86% 13.37% 17.87% 12.28% 9.51%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 5,407,990 ÷ 33,723,297 = 16.04%

2 Adjusted net income. See details »

3 Adjusted revenues. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenues
= 100 × 5,036,681 ÷ 33,901,605 = 14.86%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Netflix Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Net income 5,407,990 4,491,924 5,116,228 2,761,395 1,866,916
Stockholders’ equity 20,588,313 20,777,401 15,849,248 11,065,240 7,582,157
Profitability Ratio
ROE1 26.27% 21.62% 32.28% 24.96% 24.62%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 5,036,681 4,235,905 5,322,204 3,092,627 1,932,084
Adjusted stockholders’ equity3 21,156,732 21,780,521 16,910,495 11,594,141 7,848,696
Profitability Ratio
Adjusted ROE4 23.81% 19.45% 31.47% 26.67% 24.62%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 5,407,990 ÷ 20,588,313 = 26.27%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 5,036,681 ÷ 21,156,732 = 23.81%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Netflix Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Net income 5,407,990 4,491,924 5,116,228 2,761,395 1,866,916
Total assets 48,731,992 48,594,768 44,584,663 39,280,359 33,975,712
Profitability Ratio
ROA1 11.10% 9.24% 11.48% 7.03% 5.49%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 5,036,681 4,235,905 5,322,204 3,092,627 1,932,084
Adjusted total assets3 47,731,232 48,333,227 44,436,568 38,691,268 33,317,506
Profitability Ratio
Adjusted ROA4 10.55% 8.76% 11.98% 7.99% 5.80%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 5,407,990 ÷ 48,731,992 = 11.10%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 5,036,681 ÷ 47,731,232 = 10.55%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Netflix Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.