Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Netflix Inc. (NASDAQ:NFLX)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Netflix Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 0.59 0.61 0.61 0.65 0.66
Adjusted 0.61 0.60 0.62 0.64 0.66
Liquidity Ratio
Current Ratio
Reported 0.90 1.49 1.40 1.25 1.54
Adjusted 1.04 1.69 1.58 1.38 1.71
Solvency Ratios
Debt to Equity
Reported 1.95 1.98 1.81 1.26 1.07
Adjusted 2.09 2.14 1.91 1.33 1.16
Debt to Capital
Reported 0.66 0.66 0.64 0.56 0.52
Adjusted 0.68 0.68 0.66 0.57 0.54
Financial Leverage
Reported 4.48 4.96 5.31 5.07 4.59
Adjusted 4.24 4.91 5.14 4.78 4.36
Profitability Ratios
Net Profit Margin
Reported 9.26% 7.67% 4.78% 2.11% 1.81%
Adjusted 9.51% 7.96% 4.66% 2.59% 1.42%
Return on Equity (ROE)
Reported 24.62% 23.12% 15.60% 6.97% 5.52%
Adjusted 24.62% 23.35% 14.87% 7.99% 4.07%
Return on Assets (ROA)
Reported 5.49% 4.66% 2.94% 1.37% 1.20%
Adjusted 5.80% 4.75% 2.89% 1.67% 0.93%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Netflix Inc.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Netflix Inc.’s adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Netflix Inc.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Netflix Inc.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
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.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Netflix Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Netflix Inc.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Netflix Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Netflix Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in thousands)
Revenues 20,156,447  15,794,341  11,692,713  8,830,669  6,779,511 
Total assets 33,975,712  25,974,400  19,012,742  13,586,610  10,202,871 
Activity Ratio
Total asset turnover1 0.59 0.61 0.61 0.65 0.66
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted revenues2 20,320,293  15,936,618  11,867,863  8,927,420  6,851,646 
Adjusted total assets3 33,317,506  26,687,414  19,134,140  13,848,634  10,416,163 
Activity Ratio
Adjusted total asset turnover4 0.61 0.60 0.62 0.64 0.66

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).

1 2019 Calculation
Total asset turnover = Revenues ÷ Total assets
= 20,156,447 ÷ 33,975,712 = 0.59

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 20,320,293 ÷ 33,317,506 = 0.61

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Netflix Inc.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in thousands)
Current assets 6,178,504  9,694,135  7,669,974  5,720,291  5,431,840 
Current liabilities 6,855,696  6,487,320  5,466,312  4,586,657  3,529,624 
Liquidity Ratio
Current ratio1 0.90 1.49 1.40 1.25 1.54
Adjusted
Selected Financial Data (US$ in thousands)
Current assets 6,178,504  9,694,135  7,669,974  5,720,291  5,431,840 
Adjusted current liabilities2 5,930,951  5,726,421  4,847,690  4,143,185  3,182,903 
Liquidity Ratio
Adjusted current ratio3 1.04 1.69 1.58 1.38 1.71

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).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,178,504 ÷ 6,855,696 = 0.90

2 Adjusted current liabilities. See details »

3 2019 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 6,178,504 ÷ 5,930,951 = 1.04

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Netflix Inc.’s adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in thousands)
Total debt 14,759,260  10,360,058  6,499,432  3,364,311  2,371,362 
Stockholders’ equity 7,582,157  5,238,765  3,581,956  2,679,800  2,223,426 
Solvency Ratio
Debt to equity1 1.95 1.98 1.81 1.26 1.07
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 16,372,494  11,637,497  7,099,096  3,853,583  2,765,227 
Adjusted stockholders’ equity3 7,848,696  5,435,239  3,722,312  2,896,024  2,389,574 
Solvency Ratio
Adjusted debt to equity4 2.09 2.14 1.91 1.33 1.16

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).

1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 14,759,260 ÷ 7,582,157 = 1.95

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 16,372,494 ÷ 7,848,696 = 2.09

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.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in thousands)
Total debt 14,759,260  10,360,058  6,499,432  3,364,311  2,371,362 
Total capital 22,341,417  15,598,823  10,081,388  6,044,111  4,594,788 
Solvency Ratio
Debt to capital1 0.66 0.66 0.64 0.56 0.52
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 16,372,494  11,637,497  7,099,096  3,853,583  2,765,227 
Adjusted total capital3 24,221,190  17,072,736  10,821,408  6,749,607  5,154,801 
Solvency Ratio
Adjusted debt to capital4 0.68 0.68 0.66 0.57 0.54

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).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,759,260 ÷ 22,341,417 = 0.66

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 16,372,494 ÷ 24,221,190 = 0.68

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.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in thousands)
Total assets 33,975,712  25,974,400  19,012,742  13,586,610  10,202,871 
Stockholders’ equity 7,582,157  5,238,765  3,581,956  2,679,800  2,223,426 
Solvency Ratio
Financial leverage1 4.48 4.96 5.31 5.07 4.59
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets2 33,317,506  26,687,414  19,134,140  13,848,634  10,416,163 
Adjusted stockholders’ equity3 7,848,696  5,435,239  3,722,312  2,896,024  2,389,574 
Solvency Ratio
Adjusted financial leverage4 4.24 4.91 5.14 4.78 4.36

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).

1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 33,975,712 ÷ 7,582,157 = 4.48

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 33,317,506 ÷ 7,848,696 = 4.24

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.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in thousands)
Net income 1,866,916  1,211,242  558,929  186,678  122,641 
Revenues 20,156,447  15,794,341  11,692,713  8,830,669  6,779,511 
Profitability Ratio
Net profit margin1 9.26% 7.67% 4.78% 2.11% 1.81%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 1,932,084  1,268,974  553,399  231,325  97,259 
Adjusted revenues3 20,320,293  15,936,618  11,867,863  8,927,420  6,851,646 
Profitability Ratio
Adjusted net profit margin4 9.51% 7.96% 4.66% 2.59% 1.42%

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).

1 2019 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 1,866,916 ÷ 20,156,447 = 9.26%

2 Adjusted net income. See details »

3 Adjusted revenues. See details »

4 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenues
= 100 × 1,932,084 ÷ 20,320,293 = 9.51%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Netflix Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in thousands)
Net income 1,866,916  1,211,242  558,929  186,678  122,641 
Stockholders’ equity 7,582,157  5,238,765  3,581,956  2,679,800  2,223,426 
Profitability Ratio
ROE1 24.62% 23.12% 15.60% 6.97% 5.52%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 1,932,084  1,268,974  553,399  231,325  97,259 
Adjusted stockholders’ equity3 7,848,696  5,435,239  3,722,312  2,896,024  2,389,574 
Profitability Ratio
Adjusted ROE4 24.62% 23.35% 14.87% 7.99% 4.07%

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).

1 2019 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,866,916 ÷ 7,582,157 = 24.62%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 1,932,084 ÷ 7,848,696 = 24.62%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Netflix Inc.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in thousands)
Net income 1,866,916  1,211,242  558,929  186,678  122,641 
Total assets 33,975,712  25,974,400  19,012,742  13,586,610  10,202,871 
Profitability Ratio
ROA1 5.49% 4.66% 2.94% 1.37% 1.20%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 1,932,084  1,268,974  553,399  231,325  97,259 
Adjusted total assets3 33,317,506  26,687,414  19,134,140  13,848,634  10,416,163 
Profitability Ratio
Adjusted ROA4 5.80% 4.75% 2.89% 1.67% 0.93%

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).

1 2019 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,866,916 ÷ 33,975,712 = 5.49%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 1,932,084 ÷ 33,317,506 = 5.80%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Netflix Inc.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.