Netflix Inc. (NASDAQ:NFLX)

Total Asset Turnover

The reported total asset turnover ratio exhibited a gradual increase over the five-year period, rising from 0.64 in 2020 to 0.73 in 2024. The adjusted total asset turnover mirrored this trend, indicating consistent asset utilization improvements with an increase from 0.65 to 0.75. This suggests enhanced efficiency in generating revenue from asset base over time.

Current Ratio

The reported current ratio experienced fluctuations, initially declining from 1.25 in 2020 to 0.95 in 2021, then recovering to 1.22 by 2024. The adjusted current ratio followed a similar pattern but remained consistently higher than the reported figures, moving from 1.46 in 2020 to 1.42 in 2024 after a dip in 2021. Overall, liquidity appears to have been somewhat volatile but demonstrating recovery and stability in recent years.

Debt to Equity

A steady decrease in reported debt to equity ratio was observed, dropping significantly from 1.47 in 2020 to 0.63 in 2024. Adjusted debt to equity ratios showed a parallel pattern, declining from 1.60 to 0.72. This downward trend reflects a reduction in leverage relative to shareholder equity, suggesting a stronger equity base or reduction in debt levels.

Debt to Capital

The reported debt to capital ratio similarly decreased over the period, from 0.60 in 2020 to 0.39 in 2024, with adjusted values moving from 0.61 to 0.42. This indicates a lower proportion of debt in the company's overall capital structure, reinforcing the trend of decreased reliance on debt financing.

Financial Leverage

Financial leverage ratios displayed a consistent decline, with reported leverage decreasing from 3.55 in 2020 to 2.17 in 2024, and adjusted leverage dropping from 3.34 to 2.09. This reduction underscores a lowering of overall financial risk, likely through deleveraging or growth in equity.

Net Profit Margin

Reported net profit margin demonstrated variability but an overall upward trajectory, starting at 11.05% in 2020, dipping in 2022 to 14.21%, and then rising sharply to 22.34% by 2024. Adjusted net profit margin followed this pattern with slightly higher values. This improvement in profitability indicates enhanced cost control, revenue quality, or operational efficiency over time.

Return on Equity (ROE)

Reported ROE showed an initial increase from 24.96% in 2020 to 32.28% in 2021, followed by a dip to 21.62% in 2022, and then rebounding to a high of 35.21% by 2024. Adjusted ROE trends were parallel but marginally lower in mid-period years. The overall pattern suggests fluctuating but generally strong returns generated on shareholder equity.

Return on Assets (ROA)

The reported ROA increased from 7.03% in 2020 to 16.24% in 2024, with a mid-period decline in 2022. Adjusted ROA showed a similar pattern but with slightly higher values earlier on. This indicates improving effectiveness in utilizing assets to generate profit, especially in the most recent years.

The financial data reveals consistent growth in revenues over the five-year period under review. Revenues increased steadily from approximately $24.99 billion in 2020 to nearly $39.00 billion in 2024, reflecting a significant upward trajectory. This increase corresponds with the growth in adjusted revenues, which mirror the reported figures closely and demonstrate a similar positive trend.

Total assets also expanded throughout the period, rising from about $39.28 billion in 2020 to over $53.63 billion by the end of 2024. Adjusted total assets follow the same pattern, presenting a moderate increase each year and culminating at approximately $52.34 billion in 2024. This growth in assets indicates ongoing investments or acquisitions, supporting the company's revenue expansion.

The total asset turnover ratio, both reported and adjusted, exhibits an improving trend over the timeframe. The reported ratio increased from 0.64 in 2020 to 0.73 in 2024, while the adjusted ratio moved from 0.65 to 0.75 in the same period. This upward trend suggests that the company is becoming more efficient in utilizing its assets to generate sales, achieving higher revenues per unit of asset base. The steady increase in asset turnover ratios, especially the adjusted ones, reflects improving operational efficiency and asset management.

Overall, the data indicates a period of robust growth accompanied by improving efficiency metrics. The simultaneous increase in asset base and asset turnover ratio is a positive indicator, showing effective scaling and better productivity of resources. These patterns point to a strengthening financial position characterized by expanding market reach and enhanced asset utilization.

Current Assets

The current assets experienced fluctuations over the analyzed period. Starting at approximately $9.76 billion at the end of 2020, there was a decline in 2021 to around $8.07 billion. This was followed by a recovery in 2022 and 2023, reaching nearly $9.92 billion, and a significant increase in 2024 to about $13.10 billion, indicating an expanding asset base in recent years.

Current Liabilities

Current liabilities showed variability without a clear trend. The liabilities increased from roughly $7.81 billion in 2020 to $8.49 billion in 2021, then decreased to approximately $7.93 billion in 2022. This was followed by another increase to around $8.86 billion in 2023, and a more pronounced rise to about $10.76 billion in 2024, reflecting rising short-term obligations especially in the latest period.

Reported Current Ratio

The reported current ratio declined from 1.25 in 2020 to 0.95 in 2021, indicating a deterioration in short-term liquidity. It improved somewhat in 2022 to 1.17 and remained stable around these levels in 2023 and 2024 at 1.12 and 1.22 respectively. This suggests moderate recovery in the company's ability to cover current liabilities with current assets after the dip in 2021.

Adjusted Current Liabilities

Adjusted current liabilities, which likely exclude certain liabilities or include adjustments, follow a similar trend to reported current liabilities but with lower values overall. They decreased from approximately $6.69 billion in 2020 to $6.67 billion in 2022, then rose to about $7.42 billion in 2023 and further to nearly $9.23 billion in 2024, indicating an increase in adjusted obligations in the most recent years.

Adjusted Current Ratio

The adjusted current ratio mirrored the pattern of the reported ratio but showed consistently higher values. It decreased from 1.46 in 2020 to 1.11 in 2021, signaling a temporary liquidity contraction. It recovered substantially in 2022 to 1.39 and remained relatively stable in 2023 and 2024 at 1.34 and 1.42, respectively. This trend implies that after accounting for adjustments, liquidity position improved and remained strong towards the end of the period.

The financial data reveals a consistent evolution across the analyzed periods, highlighting key shifts in debt levels, equity, and leverage ratios.

Total Debt

The total debt shows a general downward trend from 16,308,973 thousand US dollars in 2020 to 14,353,076 thousand in 2022, followed by a slight increase in subsequent years, reaching 15,582,804 thousand by 2024. This indicates initial debt reduction efforts, later tempered by moderate increases.

Stockholders’ Equity

Stockholders’ equity exhibits a steady and significant increase from 11,065,240 thousand US dollars in 2020 to 24,743,567 thousand in 2024. The upward trajectory suggests strong equity growth, potentially through retained earnings or capital raising activities.

Reported Debt to Equity Ratio

This ratio declines substantially from 1.47 in 2020 to 0.63 in 2024, indicating a reduction in financial leverage as equity grows faster than debt. The improvement in this ratio reflects a strengthening balance sheet position over time.

Adjusted Total Debt

Adjusted total debt mirrors the trend of total debt but at higher absolute values, starting at 18,510,826 thousand US dollars in 2020 and decreasing to 16,931,564 thousand in 2022, followed by a slight increase to 17,994,974 thousand in 2024. This shows a similar pattern of initial deleveraging and subsequent moderate debt increases when considering adjustments.

Adjusted Stockholders’ Equity

The adjusted equity values follow the same increasing pattern as reported equity, growing from 11,594,141 thousand US dollars in 2020 to 25,086,822 thousand in 2024. This consistent increase corroborates the company’s improving equity base under adjusted measures.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreases from 1.60 in 2020 to 0.72 in 2024, reflecting reduced leverage under adjusted figures. Although slightly higher than the reported ratio, the trend similarly indicates progressive debt reduction relative to equity growth.

Overall, the analysis shows a trend of strengthening equity and falling leverage ratios, despite a minor resurgence in debt levels in later years. This pattern suggests improved financial stability and a more conservative capital structure over the reviewed periods.

The financial data indicates observable trends in the company's debt and capital structure over the five-year period from 2020 to 2024. There is a general pattern of decreasing total debt in the initial years, followed by a slight increase towards the end of the period. Conversely, the total capital exhibits a steady and significant growth throughout the entire timeframe.

Total Debt

The total debt decreases from approximately 16.3 billion USD in 2020 to about 14.35 billion USD in 2022, showing a reduction in the company’s leverage during this phase. However, from 2023 onwards, total debt begins to increase again, reaching approximately 15.58 billion USD in 2024. Despite this upward adjustment, the debt figure does not return to the peak levels observed in 2020.

Total Capital

Total capital continuously rises across the five years, climbing from roughly 27.37 billion USD in 2020 to around 40.33 billion USD in 2024. The growth pace appears robust between 2021 and 2024, with a noticeable jump in capital especially in the last two reported years. This trend indicates an expanding capital base, which could reflect reinvested earnings, equity issuance, or other capital inflows.

Reported Debt to Capital Ratio

This ratio declines steadily from 0.60 in 2020 to 0.39 in 2024. The decreasing trend suggests an improvement in the company’s financial leverage, with debt representing a smaller proportion of total capital over time. The ratio stabilizes somewhat from 2022 to 2023 before continuing its descent in 2024.

Adjusted Total Debt

The adjusted measure of total debt follows a similar pattern to the reported debt, beginning at approximately 18.51 billion USD in 2020, declining through to about 16.93 billion USD in 2022, and then increasing to nearly 18.0 billion USD by 2024. This adjustment reflects alternative accounting considerations but maintains the overall directional trend seen in reported debt.

Adjusted Total Capital

Adjusted total capital figures also exhibit growth from around 30.10 billion USD in 2020 to roughly 43.08 billion USD in 2024. Growth is steady across the period, consistent with the reported total capital metrics, reinforcing the indication of an expanding capital structure.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreases from 0.61 in 2020 to 0.42 in 2024, mirroring the reported ratio trend. The reduction in leverage under both reported and adjusted frameworks suggests deliberate financial management aimed at strengthening the capital base relative to debt.

In summary, the analysis reveals a strategy of managing debt levels alongside significant capital growth, resulting in improved leverage ratios over the reported timeframe. The lowering of both reported and adjusted debt to capital ratios highlights a sustained effort to reduce financial risk and enhance the company’s capital structure.

The financial data reveals a consistent growth in total assets over the five-year period. From the end of 2020 to the end of 2024, total assets increased steadily, reflecting an expanding asset base. This upward trend is also evident in adjusted total assets, which mirror the growth in reported total assets but on a slightly lower scale, indicating some adjustments that reduce the asset values.

Stockholders’ equity demonstrates a robust increase from 2020 through 2024, with a significant rise particularly between 2020 and 2022. This increase signals a strengthening equity base and potentially greater retained earnings or capital contributions. Adjusted stockholders’ equity follows a similar pattern, showing consistent growth and indicating that the adjustments applied do not materially alter the overall upward trend of equity.

The reported financial leverage ratio, which measures the proportion of total assets financed by equity, displays a clear declining trajectory from 3.55 in 2020 to 2.17 in 2024. This suggests the company is reducing its reliance on debt financing relative to equity over time. The adjusted financial leverage ratio also shows a similar decline from 3.34 to 2.09, reinforcing the observation that the company’s leverage is decreasing when adjustments are considered.

Overall, the data indicates a strengthening financial position characterized by asset growth, increasing equity, and a reduction in leverage ratios. These trends may imply a conservative financial strategy focusing on building equity and reducing financial risk over the analyzed period.

Total Assets

Consistently increased from approximately 39.3 billion USD to 53.6 billion USD between 2020 and 2024, indicating asset expansion.

Stockholders’ Equity

Grew from roughly 11.1 billion USD to 24.7 billion USD over the period, signaling an increase in the owner's residual interest.

Financial Leverage (Reported)

Decreased from 3.55 to 2.17, highlighting reduced dependency on external debt financing relative to equity.

Adjusted Total Assets

Followed a growth pattern similar to reported total assets, though at slightly lower levels after adjustments.

Adjusted Stockholders’ Equity

Increased from nearly 11.6 billion USD to 25.1 billion USD, paralleling the growth in reported equity.

Adjusted Financial Leverage

Declined from 3.34 to 2.09, consistent with the trend in reported leverage, signifying a safer capital structure after adjustments.

Revenue Trends

Revenues showed a consistent upward trajectory over the five-year period, starting at approximately 25 billion US dollars in 2020 and rising to nearly 39 billion US dollars by the end of 2024. The growth was steady each year, with the largest absolute increase occurring in the final year analyzed.

Net Income Development

Net income increased substantially from about 2.76 billion US dollars in 2020 to over 8.7 billion US dollars in 2024. The data indicates a marked surge between 2023 and 2024, despite a dip in 2022 relative to 2021. This reflects periods of strong profitability improvement after some volatility in the middle years.

Profit Margins

The reported net profit margin improved significantly, starting at 11.05% in 2020 and reaching a high of 22.34% in 2024. This demonstrates enhanced efficiency and profitability relative to revenues. Notably, after a decline in 2022, margin growth resumed and accelerated through the last two years.

Adjusted Figures

Adjusted net income and revenues closely mirror the trends observed in reported figures but show slight variations likely due to accounting adjustments. Adjusted net income remains below reported net income in certain years, suggesting some non-recurring impacts. Adjusted net profit margin follows a similar pattern to the reported margin, confirming the improvement in profitability when removing extraordinary items.

Overall Insights

The company demonstrated solid financial growth across the analyzed period. Revenue growth was accompanied by substantial gains in net income and profit margins, indicating improved operational efficiency and cost management. The corrected adjusted figures support the robustness of these trends. The resurgence of profit margins after a mid-period dip highlights resilience and possibly strategic adjustments that enhanced financial performance in the latter years.

Net Income

The net income demonstrated a general upward trend from 2,761,395 thousand US dollars in 2020 to 8,711,631 thousand US dollars in 2024. After a significant increase in 2021, there was a decline in 2022, followed by a steady rise through 2023 and a sharp increase in 2024.

Stockholders’ Equity

Stockholders’ equity consistently increased over the five-year period, starting at 11,065,240 thousand US dollars in 2020 and rising to 24,743,567 thousand US dollars in 2024. The growth rate was relatively steady, with a slight plateau observed between 2022 and 2023 before accelerating again in 2024.

Reported Return on Equity (ROE)

The reported ROE showed variability over the period. It peaked in 2021 at 32.28%, dropped considerably to 21.62% in 2022, then gradually increased in the following years, reaching the highest level of 35.21% in 2024, indicating improved profitability relative to equity in that year.

Adjusted Net Income

Adjusted net income mirrored the trend of reported net income, increasing from 3,092,627 thousand US dollars in 2020 to 8,784,212 thousand US dollars in 2024. A decline occurred from 2021 to 2022, followed by a recovery and substantial growth by 2024.

Adjusted Stockholders’ Equity

The adjusted stockholders' equity followed a consistent upward trajectory, rising from 11,594,141 thousand US dollars in 2020 to 25,086,822 thousand US dollars in 2024. Growth was steady but slowed slightly in 2023 before increasing again in 2024.

Adjusted Return on Equity (ROE)

Adjusted ROE showed a similar pattern to the reported ROE, with a peak at 31.47% in 2021, a drop to 19.45% in 2022, followed by gradual recovery to 35.02% in 2024. This reflects variations in adjusted profitability relative to equity, with significant improvement noted in the final year.

The annual financial data reveals notable fluctuations and general upward trends in profitability and asset base over the five-year period.

Net Income

Net income experienced substantial growth from 2020 to 2021, nearly doubling. However, in 2022, there was a decline, followed by a recovery and further growth in 2023 and a significant increase in 2024, reaching the highest value in the period. This suggests a positive trend in earnings with some volatility in 2022.

Total Assets

Total assets consistently increased year over year, reflecting expansion or accumulation of resources. The growth was steady but slowed slightly in 2023 before accelerating again in 2024. This continuous asset growth may indicate ongoing investments or acquisition of assets contributing to the company's capacity.

Reported Return on Assets (ROA)

The reported ROA illustrated an overall upward trajectory, improving from a moderate 7.03% in 2020 to a more robust 16.24% in 2024. There was a dip in 2022 compared to 2021, but the rate recovered strongly thereafter. This improvement in ROA points to increasing efficiency in utilizing assets to generate net income.

Adjusted Net Income

The adjusted net income generally mirrored the trends of net income with higher values in 2021 and 2024, though it declined in 2022 notably and saw some recovery in 2023. The differences between reported and adjusted figures suggest accounting or one-time adjustments influencing the results but maintain similar pattern insights.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to reported total assets, increasing over the years with a slight dip or slower growth in 2023 before an uptick in 2024. This consistency reinforces the observation of asset base expansion.

Adjusted Return on Assets

Adjusted ROA presented a pattern akin to reported ROA, with improvement over the period from 7.99% in 2020 to 16.78% in 2024, despite a notable decrease in 2022. The rebound in adjusted ROA post-2022 indicates a recovery in asset utilization efficiency when accounting for adjustments.

In summary, while 2022 represented a year of relative decline in profitability metrics, the overall trajectory from 2020 through 2024 demonstrates growth in both earnings and asset base, with enhanced efficiency in asset use as indicated by rising ROA figures. The adjusted and reported figures are closely aligned, suggesting that adjustments do not dramatically alter the financial performance narrative but provide a slightly higher measure of profitability and efficiency.