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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 41.54% 39.37% 41.64% 38.89% 38.28%
Operating profit margin 20.62% 17.82% 20.86% 18.34% 12.92%
Net profit margin 16.04% 14.21% 17.23% 11.05% 9.26%
Return on Investment
Return on equity (ROE) 26.27% 21.62% 32.28% 24.96% 24.62%
Return on assets (ROA) 11.10% 9.24% 11.48% 7.03% 5.49%

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).

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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Netflix Inc. operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Netflix Inc. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

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

Gross Profit Margin

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Gross profit 14,007,929 12,447,265 12,365,161 9,719,737 7,716,234
Revenues 33,723,297 31,615,550 29,697,844 24,996,056 20,156,447
Profitability Ratio
Gross profit margin1 41.54% 39.37% 41.64% 38.89% 38.28%
Benchmarks
Gross Profit Margin, Competitors2
Alphabet Inc. 56.63% 55.38% 56.94% 53.58% 55.58%
Charter Communications Inc. 38.83% 39.14% 39.09% 37.77% 36.14%
Comcast Corp. 69.76% 68.53% 66.96% 68.02% 68.39%
Meta Platforms Inc. 80.76% 78.35% 80.79% 80.58% 81.94%
Walt Disney Co. 33.41% 34.24% 33.06% 32.89% 39.60%

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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 14,007,929 ÷ 33,723,297 = 41.54%

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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Operating Profit Margin

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Operating income 6,954,003 5,632,831 6,194,509 4,585,289 2,604,254
Revenues 33,723,297 31,615,550 29,697,844 24,996,056 20,156,447
Profitability Ratio
Operating profit margin1 20.62% 17.82% 20.86% 18.34% 12.92%
Benchmarks
Operating Profit Margin, Competitors2
Alphabet Inc. 27.42% 26.46% 30.55% 22.59% 21.15%
Charter Communications Inc. 23.00% 22.14% 20.37% 17.48% 14.23%
Comcast Corp. 19.18% 11.56% 17.89% 16.89% 19.39%
Meta Platforms Inc. 34.66% 24.82% 39.65% 38.01% 33.93%
Walt Disney Co. 5.74% 7.90% 4.46% -2.97% 15.33%
Operating Profit Margin, Sector
Media & Entertainment 24.15% 20.60% 25.91% 20.06% 20.78%
Operating Profit Margin, Industry
Communication Services 22.26% 16.99% 22.35% 16.41% 19.54%

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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 6,954,003 ÷ 33,723,297 = 20.62%

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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Net Profit Margin

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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%
Benchmarks
Net Profit Margin, Competitors2
Alphabet Inc. 24.01% 21.20% 29.51% 22.06% 21.22%
Charter Communications Inc. 8.35% 9.36% 9.01% 6.70% 3.64%
Comcast Corp. 12.66% 4.42% 12.17% 10.17% 11.99%
Meta Platforms Inc. 28.98% 19.90% 33.38% 33.90% 26.15%
Walt Disney Co. 2.65% 3.80% 2.96% -4.38% 15.89%
Net Profit Margin, Sector
Media & Entertainment 18.97% 14.69% 22.06% 16.27% 16.87%
Net Profit Margin, Industry
Communication Services 16.26% 11.36% 18.22% 11.24% 14.02%

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 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Return on Equity (ROE)

Netflix Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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%
Benchmarks
ROE, Competitors2
Alphabet Inc. 26.04% 23.41% 30.22% 18.09% 17.05%
Charter Communications Inc. 41.11% 55.43% 33.12% 13.53% 5.30%
Comcast Corp. 18.61% 6.63% 14.73% 11.66% 15.78%
Meta Platforms Inc. 25.53% 18.45% 31.53% 22.72% 18.29%
Walt Disney Co. 2.37% 3.31% 2.25% -3.43% 12.44%
ROE, Sector
Media & Entertainment 21.62% 17.23% 23.91% 14.84% 15.68%
ROE, Industry
Communication Services 19.21% 13.78% 20.53% 11.56% 14.87%

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 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 deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Return on Assets (ROA)

Netflix Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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%
Benchmarks
ROA, Competitors2
Alphabet Inc. 18.34% 16.42% 21.16% 12.60% 12.45%
Charter Communications Inc. 3.10% 3.50% 3.27% 2.23% 1.13%
Comcast Corp. 5.81% 2.09% 5.13% 3.85% 4.96%
Meta Platforms Inc. 17.03% 12.49% 23.72% 18.29% 13.86%
Walt Disney Co. 1.15% 1.54% 0.98% -1.42% 5.70%
ROA, Sector
Media & Entertainment 10.83% 8.40% 11.86% 7.30% 7.67%
ROA, Industry
Communication Services 7.63% 5.30% 8.05% 4.53% 5.92%

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 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.