Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Netflix Inc., profitability ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Return on Sales
Gross profit margin 41.64% 38.89% 38.28% 36.89% 34.49%
Operating profit margin 20.86% 18.34% 12.92% 10.16% 7.17%
Net profit margin 17.23% 11.05% 9.26% 7.67% 4.78%
Return on Investment
Return on equity (ROE) 32.28% 24.96% 24.62% 23.12% 15.60%
Return on assets (ROA) 11.48% 7.03% 5.49% 4.66% 2.94%

Based on: 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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Netflix Inc. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Netflix Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Netflix Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Netflix Inc. ROE improved from 2019 to 2020 and from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. Netflix Inc. ROA improved from 2019 to 2020 and from 2020 to 2021.

Gross Profit Margin

Netflix Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Gross profit 12,365,161  9,719,737  7,716,234  5,826,803  4,033,047 
Revenues 29,697,844  24,996,056  20,156,447  15,794,341  11,692,713 
Profitability Ratio
Gross profit margin1 41.64% 38.89% 38.28% 36.89% 34.49%
Benchmarks
Gross Profit Margin, Competitors2
Alphabet Inc. 56.94% 53.58% 55.58% 56.48% 58.88%
Charter Communications Inc. 39.09% 37.77% 36.14% 36.15% 36.17%
Comcast Corp. 66.96% 68.02% 68.39% 68.58% 69.97%
Meta Platforms Inc. 80.79% 80.58% 81.94% 83.25% 86.58%
Twitter Inc. 64.60% 63.23% 67.13% 68.28% 64.75%
Walt Disney Co. 33.06% 32.89% 39.60% 44.94% 45.04%

Based on: 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).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 12,365,161 ÷ 29,697,844 = 41.64%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Netflix Inc. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Operating Profit Margin

Netflix Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Operating income 6,194,509  4,585,289  2,604,254  1,605,226  838,679 
Revenues 29,697,844  24,996,056  20,156,447  15,794,341  11,692,713 
Profitability Ratio
Operating profit margin1 20.86% 18.34% 12.92% 10.16% 7.17%
Benchmarks
Operating Profit Margin, Competitors2
Alphabet Inc. 30.55% 22.59% 21.15% 19.24% 23.59%
Charter Communications Inc. 20.37% 17.48% 14.23% 11.97% 9.87%
Comcast Corp. 17.89% 16.89% 19.39% 20.11% 21.28%
Meta Platforms Inc. 39.65% 38.01% 33.93% 44.62% 49.70%
Twitter Inc. -9.70% 0.72% 10.59% 14.90% 1.59%
Walt Disney Co. 4.46% -2.97% 15.33% 24.91% 24.98%
Operating Profit Margin, Sector
Media & Entertainment 25.63% 19.92% 20.71% 22.57% 23.95%
Operating Profit Margin, Industry
Communication Services 22.19% 16.35% 19.50% 19.36% 20.23%

Based on: 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).

1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 6,194,509 ÷ 29,697,844 = 20.86%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Netflix Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Net Profit Margin

Netflix Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net income 5,116,228  2,761,395  1,866,916  1,211,242  558,929 
Revenues 29,697,844  24,996,056  20,156,447  15,794,341  11,692,713 
Profitability Ratio
Net profit margin1 17.23% 11.05% 9.26% 7.67% 4.78%
Benchmarks
Net Profit Margin, Competitors2
Alphabet Inc. 29.51% 22.06% 21.22% 22.46% 11.42%
Charter Communications Inc. 9.01% 6.70% 3.64% 2.82% 23.80%
Comcast Corp. 12.17% 10.17% 11.99% 12.41% 26.87%
Meta Platforms Inc. 33.38% 33.90% 26.15% 39.60% 39.20%
Twitter Inc. -4.36% -30.56% 42.37% 39.63% -4.42%
Walt Disney Co. 2.96% -4.38% 15.89% 21.20% 16.29%
Net Profit Margin, Sector
Media & Entertainment 21.85% 15.93% 17.05% 19.76% 20.36%
Net Profit Margin, Industry
Communication Services 18.11% 11.06% 14.14% 15.73% 19.99%

Based on: 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).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 5,116,228 ÷ 29,697,844 = 17.23%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Netflix Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Return on Equity (ROE)

Netflix Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net income 5,116,228  2,761,395  1,866,916  1,211,242  558,929 
Stockholders’ equity 15,849,248  11,065,240  7,582,157  5,238,765  3,581,956 
Profitability Ratio
ROE1 32.28% 24.96% 24.62% 23.12% 15.60%
Benchmarks
ROE, Competitors2
Alphabet Inc. 30.22% 18.09% 17.05% 17.30% 8.30%
Charter Communications Inc. 33.12% 13.53% 5.30% 3.39% 25.32%
Comcast Corp. 14.73% 11.66% 15.78% 16.38% 33.11%
Meta Platforms Inc. 31.53% 22.72% 18.29% 26.28% 21.43%
Twitter Inc. -3.03% -14.25% 16.84% 17.71% -2.14%
Walt Disney Co. 2.25% -3.43% 12.44% 25.83% 21.74%
ROE, Sector
Media & Entertainment 23.58% 14.44% 15.70% 18.78% 18.37%
ROE, Industry
Communication Services 20.34% 11.32% 14.89% 17.13% 22.80%

Based on: 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).

1 2021 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 5,116,228 ÷ 15,849,248 = 32.28%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Netflix Inc. ROE improved from 2019 to 2020 and from 2020 to 2021.

Return on Assets (ROA)

Netflix Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net income 5,116,228  2,761,395  1,866,916  1,211,242  558,929 
Total assets 44,584,663  39,280,359  33,975,712  25,974,400  19,012,742 
Profitability Ratio
ROA1 11.48% 7.03% 5.49% 4.66% 2.94%
Benchmarks
ROA, Competitors2
Alphabet Inc. 21.16% 12.60% 12.45% 13.20% 6.42%
Charter Communications Inc. 3.27% 2.23% 1.13% 0.84% 6.75%
Comcast Corp. 5.13% 3.85% 4.96% 4.66% 12.15%
Meta Platforms Inc. 23.72% 18.29% 13.86% 22.72% 18.85%
Twitter Inc. -1.57% -8.49% 11.54% 11.86% -1.46%
Walt Disney Co. 0.98% -1.42% 5.70% 12.78% 9.37%
ROA, Sector
Media & Entertainment 11.70% 7.12% 7.72% 9.37% 9.58%
ROA, Industry
Communication Services 7.99% 4.45% 5.95% 6.85% 8.93%

Based on: 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).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 5,116,228 ÷ 44,584,663 = 11.48%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Netflix Inc. ROA improved from 2019 to 2020 and from 2020 to 2021.