Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Netflix Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analyzed financial data reveals consistent performance improvements across multiple profitability and efficiency metrics over recent periods.
- Gross Profit Margin
- The gross profit margin exhibits a generally upward trend from an initial value of 38.89% in March 2020, reaching 46.92% by the end of the forecasted period in March 2025. This steady increase suggests enhanced cost management or improved pricing strategies contributing to higher profitability at the gross level.
- Operating Profit Margin
- The operating profit margin has shown steady growth from 18.34% in March 2020 to 27.71% in March 2025. Despite minor fluctuations in some quarters, the overall increase indicates improved operational efficiency and effective control over operating expenses relative to revenue.
- Net Profit Margin
- Net profit margin has risen from 11.05% to 23.07% across the same timeframe, suggesting stronger bottom-line profitability. The data demonstrates consistent growth, with the margin more than doubling, highlighting enhanced net income generation capabilities likely driven by both revenue growth and cost containment.
- Return on Equity (ROE)
- ROE displays an upward trajectory from 24.96% to 38.58%, although with some variability in intermediate periods. The improvement indicates that the company's management is increasingly effective in generating profits from shareholders' equity, reflecting enhanced value creation for investors.
- Return on Assets (ROA)
- ROA increases from 7.03% to 17.80% over the evaluation period, signifying better utilization of assets to generate earnings. This positive trend points to growing operational efficiency and profitability relative to the asset base.
Overall, the financial metrics collectively indicate a robust improvement in profitability and efficiency. Margins have widened consistently, and returns on equity and assets have also displayed substantial gains. This suggests sustained business growth and enhanced financial performance over the periods analyzed.
Return on Sales
Return on Investment
Gross Profit Margin
Netflix Inc., gross profit margin calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Gross profit | 5,279,654) | 4,479,149) | 4,704,819) | 4,385,167) | 4,393,367) | 3,525,340) | 3,610,880) | 3,513,831) | 3,357,878) | 2,447,893) | 3,136,924) | 3,279,386) | 3,583,062) | 2,469,743) | 3,276,878) | 3,323,769) | 3,294,771) | 2,479,282) | 2,567,886) | 2,504,579) | 2,167,990) | |||||||
| Revenues | 10,542,801) | 10,246,513) | 9,824,703) | 9,559,310) | 9,370,440) | 8,832,825) | 8,541,668) | 8,187,301) | 8,161,503) | 7,852,053) | 7,925,589) | 7,970,141) | 7,867,767) | 7,709,318) | 7,483,467) | 7,341,777) | 7,163,282) | 6,644,442) | 6,435,637) | 6,148,286) | 5,767,691) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Gross profit margin1 | 46.92% | 46.06% | 45.25% | 43.84% | 43.06% | 41.54% | 39.49% | 38.77% | 38.30% | 39.37% | 39.62% | 40.63% | 41.62% | 41.64% | 43.22% | 42.29% | 41.10% | 38.89% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 58.59% | 58.20% | 57.84% | 57.35% | 57.12% | 56.63% | 55.88% | 55.44% | 55.30% | 55.38% | 56.10% | 56.74% | 56.93% | 56.94% | 56.51% | 55.72% | 54.32% | 53.58% | — | — | — | |||||||
| Comcast Corp. | 70.36% | 70.08% | 69.73% | 70.53% | 70.00% | 69.76% | 69.96% | 69.65% | 69.49% | 68.53% | 68.41% | 67.34% | 66.64% | 66.96% | 66.59% | 66.81% | 67.61% | 68.02% | — | — | — | |||||||
| Meta Platforms Inc. | 81.75% | 81.67% | 81.43% | 81.40% | 81.44% | 80.76% | 79.05% | 78.34% | 78.40% | 78.35% | 80.31% | 80.47% | 80.34% | 80.79% | 80.85% | 80.98% | 80.55% | 80.58% | — | — | — | |||||||
| Take-Two Interactive Software Inc. | 43.19% | 41.91% | 36.98% | 37.40% | 41.54% | 42.72% | 53.66% | 56.14% | 56.74% | 56.19% | 58.51% | 58.12% | 58.62% | 54.49% | 49.87% | 48.21% | 47.40% | 50.07% | — | — | — | |||||||
| Walt Disney Co. | 36.74% | 35.75% | 35.36% | 35.03% | 34.33% | 33.41% | 32.77% | 33.04% | 33.40% | 34.24% | 34.43% | 33.79% | 34.34% | 33.06% | 31.12% | 30.65% | 29.85% | 32.89% | 35.96% | 36.60% | 38.72% | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Gross profit margin = 100
× (Gross profitQ1 2025
+ Gross profitQ4 2024
+ Gross profitQ3 2024
+ Gross profitQ2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × (5,279,654 + 4,479,149 + 4,704,819 + 4,385,167)
÷ (10,542,801 + 10,246,513 + 9,824,703 + 9,559,310)
= 46.92%
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in profitability and revenue growth over the analyzed periods.
- Revenue growth
- Revenues exhibit a general upward trajectory from March 2020 through March 2025. Beginning at approximately 5.77 billion US dollars in the first quarter of 2020, revenues steadily increase each quarter, reaching over 10.5 billion US dollars by the first quarter of 2025. This suggests sustained growth in the company's top line throughout the period analyzed.
- Gross profit trends
- Gross profit follows a pattern broadly consistent with revenues but shows some fluctuations. Starting at about 2.17 billion US dollars in March 2020, gross profit rises to a peak near 3.29 billion by March 2021, then experiences both increases and decreases in subsequent quarters. Notably, gross profit dips during the latter part of 2021 and late 2022, before resuming a generally strong upward course to over 5.27 billion in March 2025. This indicates some variability in cost management or product mix impacting gross profitability.
- Gross profit margin dynamics
- Gross profit margin data begins from the first quarter of 2021. The margin improves from around 38.9% in March 2021 to a high of approximately 46.9% by March 2025. This sustained increase in margin percentage suggests enhanced operational efficiency or stronger pricing power over time. Margins remain relatively stable during 2021 and 2022 before trending upward consistently from late 2022 onward, indicating potential improvements in cost controls or a favorable shift in revenue composition.
In summary, the company demonstrates robust revenue growth accompanied by a notable improvement in gross profit margins over the five-year span. While gross profits exhibit some short-term variability, the overall trend points toward better profitability and efficient management of costs relative to revenue generation. The increasing margin percentages further reinforce a positive outlook on the company's ability to convert revenue into profit efficiently.
Operating Profit Margin
Netflix Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Operating income | 3,346,999) | 2,272,766) | 2,909,477) | 2,602,837) | 2,632,534) | 1,496,109) | 1,916,394) | 1,827,183) | 1,714,317) | 549,904) | 1,533,018) | 1,578,283) | 1,971,626) | 631,770) | 1,755,253) | 1,847,630) | 1,959,856) | 954,242) | 1,314,863) | 1,357,928) | 958,256) | |||||||
| Revenues | 10,542,801) | 10,246,513) | 9,824,703) | 9,559,310) | 9,370,440) | 8,832,825) | 8,541,668) | 8,187,301) | 8,161,503) | 7,852,053) | 7,925,589) | 7,970,141) | 7,867,767) | 7,709,318) | 7,483,467) | 7,341,777) | 7,163,282) | 6,644,442) | 6,435,637) | 6,148,286) | 5,767,691) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Operating profit margin1 | 27.71% | 26.71% | 25.65% | 23.82% | 22.54% | 20.62% | 18.35% | 17.51% | 16.85% | 17.82% | 18.16% | 19.13% | 20.41% | 20.86% | 22.76% | 22.03% | 21.17% | 18.34% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 32.67% | 32.11% | 30.93% | 29.83% | 29.03% | 27.42% | 26.51% | 25.75% | 25.35% | 26.46% | 27.85% | 29.65% | 30.47% | 30.55% | 30.30% | 28.45% | 25.26% | 22.59% | — | — | — | |||||||
| Comcast Corp. | 18.73% | 18.83% | 18.52% | 19.32% | 19.25% | 19.18% | 19.33% | 11.99% | 11.75% | 11.56% | 11.82% | 18.25% | 17.76% | 17.89% | 17.51% | 17.01% | 16.97% | 16.89% | — | — | — | |||||||
| Meta Platforms Inc. | 42.92% | 42.18% | 39.94% | 39.25% | 37.38% | 34.66% | 28.96% | 23.80% | 23.56% | 24.82% | 29.74% | 33.41% | 36.68% | 39.65% | 41.79% | 42.52% | 40.42% | 38.01% | — | — | — | |||||||
| Take-Two Interactive Software Inc. | -66.10% | -67.12% | -29.28% | -29.85% | -24.08% | -21.78% | -6.91% | -0.16% | 7.00% | 13.51% | 17.59% | 18.46% | 21.39% | 18.66% | 15.04% | 14.75% | 13.48% | 13.77% | — | — | — | |||||||
| Walt Disney Co. | 10.07% | 9.11% | 9.08% | 5.40% | 6.87% | 5.74% | 5.22% | 8.02% | 7.42% | 7.90% | 8.01% | 7.08% | 6.93% | 4.46% | 2.60% | -7.99% | -7.37% | -2.97% | 1.25% | 10.76% | 13.22% | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2025
+ Operating incomeQ4 2024
+ Operating incomeQ3 2024
+ Operating incomeQ2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × (3,346,999 + 2,272,766 + 2,909,477 + 2,602,837)
÷ (10,542,801 + 10,246,513 + 9,824,703 + 9,559,310)
= 27.71%
2 Click competitor name to see calculations.
The data indicates several significant trends in the financial performance over the observed periods.
- Operating Income
- Operating income shows notable fluctuations throughout the quarters. Initially, it rose sharply from 958,256 thousand US dollars in March 2020 to a peak of 1,957,856 thousand US dollars in March 2021, followed by a decline during the second half of 2021, reaching 631,770 thousand US dollars by December 2021. Subsequently, operating income rebounded and exhibited an overall increasing trend, reaching higher peaks beyond 3 million thousand US dollars by March 2025. This pattern suggests cyclical quarterly variations possibly influenced by seasonality or varying operational efficiencies, with a clear overall growth trajectory.
- Revenues
- Revenues demonstrate a steady and consistent increase throughout the period, rising from approximately 5.77 billion US dollars in March 2020 to over 10.54 billion US dollars by March 2025. Despite minor short-term dips, the revenue base shows a robust upward trend, signaling solid growth and expanded business scale over the five-year horizon.
- Operating Profit Margin
- Operating profit margin data is available starting from March 2021 and reveals an improving margin over time. The margin began at 18.34% in March 2021 and progressively increased to 27.71% by March 2025. This consistent improvement indicates enhanced operational efficiency and profitability, reflecting either better cost control, pricing power, or a combination of these factors over the analyzed quarters.
In summary, the company exhibits strong revenue growth accompanied by improving profitability margins. Operating income reflects some volatility but overall trends higher, complementing the revenue and margin advances. The increasing operating profit margin is particularly noteworthy, suggesting strengthened operational leverage and financial health over the periods observed.
Net Profit Margin
Netflix Inc., net profit margin calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net income | 2,890,351) | 1,868,607) | 2,363,509) | 2,147,306) | 2,332,209) | 937,838) | 1,677,422) | 1,487,610) | 1,305,120) | 55,284) | 1,398,242) | 1,440,951) | 1,597,447) | 607,429) | 1,449,071) | 1,353,013) | 1,706,715) | 542,156) | 789,976) | 720,196) | 709,067) | |||||||
| Revenues | 10,542,801) | 10,246,513) | 9,824,703) | 9,559,310) | 9,370,440) | 8,832,825) | 8,541,668) | 8,187,301) | 8,161,503) | 7,852,053) | 7,925,589) | 7,970,141) | 7,867,767) | 7,709,318) | 7,483,467) | 7,341,777) | 7,163,282) | 6,644,442) | 6,435,637) | 6,148,286) | 5,767,691) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Net profit margin1 | 23.07% | 22.34% | 20.70% | 19.54% | 18.42% | 16.04% | 13.82% | 13.22% | 13.16% | 14.21% | 16.03% | 16.42% | 16.47% | 17.23% | 17.64% | 15.92% | 14.24% | 11.05% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 30.86% | 28.60% | 27.74% | 26.70% | 25.90% | 24.01% | 22.46% | 21.05% | 20.58% | 21.20% | 23.75% | 25.89% | 27.57% | 29.51% | 29.52% | 28.57% | 26.11% | 22.06% | — | — | — | |||||||
| Comcast Corp. | 12.71% | 13.09% | 11.92% | 12.46% | 12.64% | 12.66% | 12.53% | 5.40% | 4.71% | 4.42% | 4.46% | 11.54% | 11.96% | 12.17% | 12.73% | 11.44% | 11.25% | 10.17% | — | — | — | |||||||
| Meta Platforms Inc. | 39.11% | 37.91% | 35.55% | 34.34% | 32.06% | 28.98% | 23.42% | 18.71% | 18.27% | 19.90% | 24.41% | 28.16% | 31.20% | 33.38% | 35.88% | 37.18% | 35.74% | 33.90% | — | — | — | |||||||
| Take-Two Interactive Software Inc. | -70.33% | -69.99% | -26.90% | -27.83% | -22.17% | -21.02% | -8.35% | -2.44% | 4.26% | 11.93% | 15.40% | 16.72% | 19.45% | 17.46% | 14.96% | 14.10% | 13.22% | 13.09% | — | — | — | |||||||
| Walt Disney Co. | 6.07% | 5.44% | 5.31% | 1.90% | 3.36% | 2.65% | 2.56% | 4.74% | 3.93% | 3.80% | 3.87% | 3.46% | 4.22% | 2.96% | 1.77% | -7.73% | -8.15% | -4.38% | -1.58% | 6.88% | 13.80% | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Net profit margin = 100
× (Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024
+ Net incomeQ2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × (2,890,351 + 1,868,607 + 2,363,509 + 2,147,306)
÷ (10,542,801 + 10,246,513 + 9,824,703 + 9,559,310)
= 23.07%
2 Click competitor name to see calculations.
The net income demonstrated notable fluctuations over the analyzed periods. Initially, it increased significantly from 709,067 thousand US dollars in the first quarter of 2020 to a peak at 1,707,715 thousand US dollars in the first quarter of 2021. Subsequently, net income experienced variability with some declines, notably reaching a low of 55,284 thousand US dollars in the fourth quarter of 2022, followed by a general recovery trend, culminating in the highest reported figure of 2,890,351 thousand US dollars in the first quarter of 2025.
Revenues showed a consistent upward trend throughout the twenty-one quarters, beginning at 5,767,691 thousand US dollars in the first quarter of 2020 and reaching 10,542,801 thousand US dollars by the first quarter of 2025. There were modest seasonal fluctuations, but overall the revenue growth trajectory remained positive, reflecting steady expansion.
The net profit margin data, available from the fourth quarter of 2020 onwards, exhibited a generally increasing pattern. Starting at 11.05% in the fourth quarter of 2020, the margin rose steadily, reaching over 23% by the first quarter of 2025. This increase indicates improving profitability relative to revenues, suggesting enhanced operational efficiency or cost control over time.
- Summary of Key Trends
- - Net income showed strong growth with some volatility, including a significant dip in late 2022 but recovering robustly afterward.
- - Revenue consistently increased throughout the period, nearly doubling from early 2020 to early 2025.
- - Net profit margin improved steadily, rising from just above 11% to over 23%, signifying strengthened profitability.
- - The relationship between rising revenues and increasing net income and margin suggests effective scaling of operations and improving cost management.
Return on Equity (ROE)
Netflix Inc., ROE calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net income | 2,890,351) | 1,868,607) | 2,363,509) | 2,147,306) | 2,332,209) | 937,838) | 1,677,422) | 1,487,610) | 1,305,120) | 55,284) | 1,398,242) | 1,440,951) | 1,597,447) | 607,429) | 1,449,071) | 1,353,013) | 1,706,715) | 542,156) | 789,976) | 720,196) | 709,067) | |||||||
| Stockholders’ equity | 24,028,073) | 24,743,567) | 22,720,736) | 22,112,693) | 21,365,410) | 20,588,313) | 22,107,627) | 22,832,215) | 21,828,196) | 20,777,401) | 20,528,141) | 19,075,974) | 17,544,039) | 15,849,248) | 15,314,617) | 13,863,871) | 12,884,080) | 11,065,240) | 10,333,323) | 9,334,753) | 8,409,294) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROE1 | 38.58% | 35.21% | 34.25% | 32.08% | 30.12% | 26.27% | 20.47% | 18.60% | 19.24% | 21.62% | 24.57% | 26.71% | 28.54% | 32.28% | 32.98% | 31.68% | 29.18% | 24.96% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 32.15% | 30.80% | 30.01% | 29.15% | 28.14% | 26.04% | 24.43% | 22.82% | 22.46% | 23.41% | 26.41% | 28.20% | 29.35% | 30.22% | 28.87% | 26.49% | 22.33% | 18.09% | — | — | — | |||||||
| Comcast Corp. | 18.13% | 18.92% | 17.11% | 18.14% | 18.67% | 18.61% | 18.34% | 7.74% | 6.86% | 6.63% | 6.73% | 15.35% | 15.18% | 14.73% | 15.12% | 13.13% | 12.66% | 11.66% | — | — | — | |||||||
| Meta Platforms Inc. | 36.01% | 34.14% | 33.76% | 32.81% | 30.60% | 25.53% | 20.81% | 16.82% | 17.18% | 18.45% | 23.23% | 26.74% | 30.30% | 31.53% | 30.22% | 28.18% | 25.24% | 22.72% | — | — | — | |||||||
| Take-Two Interactive Software Inc. | -63.43% | -66.06% | -17.06% | -17.95% | -13.72% | -12.44% | -4.22% | -1.12% | 1.67% | 10.97% | 14.35% | 16.24% | 18.03% | 17.67% | 15.62% | 16.34% | 16.85% | 15.93% | — | — | — | |||||||
| Walt Disney Co. | 5.51% | 4.94% | 4.75% | 1.71% | 2.96% | 2.37% | 2.31% | 4.21% | 3.45% | 3.31% | 3.40% | 2.92% | 3.43% | 2.25% | 1.30% | -5.28% | -5.89% | -3.43% | -1.28% | 5.95% | 11.56% | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
ROE = 100
× (Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024
+ Net incomeQ2 2024)
÷ Stockholders’ equity
= 100 × (2,890,351 + 1,868,607 + 2,363,509 + 2,147,306)
÷ 24,028,073 = 38.58%
2 Click competitor name to see calculations.
The net income exhibits notable fluctuations across the reported quarters, indicating periods of both significant growth and decline. From March 2020 to December 2020, net income rose from approximately 709 million to 542 million US dollars, with a marked increase peaking at over 1.7 billion US dollars in March 2021. This peak is followed by a general decline throughout 2021 into early 2022, with net income decreasing to around 55 million US dollars by December 2022. Subsequently, the net income demonstrates recovery and growth again in 2023 and into 2024, reaching a high exceeding 2.8 billion US dollars by the first quarter of 2025. This overall trend suggests volatility with intermittent strong earnings growth and some quarters of diminished profitability.
Stockholders’ equity shows a steady and consistent upward trend throughout the period. Beginning at approximately 8.4 billion US dollars in March 2020, equity increases each quarter, reaching highs above 24.7 billion US dollars by March 2025. The sustained growth in stockholders’ equity reflects the company’s increasing net asset base, signaling accumulation of retained earnings and possible capital additions.
Return on equity (ROE) data, starting from March 2021, reveals a pattern of high profitability relative to shareholder investments. ROE begins at around 25% and climbs steadily, peaking near 39% by the first quarter of 2025. Despite some fluctuations, the ROE consistently remains above 18%, demonstrating efficient utilization of equity to generate income. This rising trend in ROE aligns with the overall increase in net income, especially in the later periods, indicating improved earnings performance relative to equity.
In summary, the quarters analyzed illustrate periods of earnings volatility contrasted with steady growth in equity, and improving efficiency in equity utilization as evidenced by rising ROE. The company appears to have experienced financial challenges and rebounds within the timeframe, but underlying equity strength and enhanced returns point to a resilient financial position and improving profitability over the longer term.
Return on Assets (ROA)
Netflix Inc., ROA calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net income | 2,890,351) | 1,868,607) | 2,363,509) | 2,147,306) | 2,332,209) | 937,838) | 1,677,422) | 1,487,610) | 1,305,120) | 55,284) | 1,398,242) | 1,440,951) | 1,597,447) | 607,429) | 1,449,071) | 1,353,013) | 1,706,715) | 542,156) | 789,976) | 720,196) | 709,067) | |||||||
| Total assets | 52,087,644) | 53,630,374) | 52,281,844) | 49,098,895) | 48,827,721) | 48,731,992) | 49,501,786) | 50,817,473) | 49,490,345) | 48,594,768) | 47,562,187) | 46,350,935) | 45,330,904) | 44,584,663) | 42,739,857) | 40,970,969) | 40,123,014) | 39,280,359) | 38,622,543) | 37,175,281) | 35,059,910) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROA1 | 17.80% | 16.24% | 14.88% | 14.45% | 13.18% | 11.10% | 9.14% | 8.36% | 8.49% | 9.24% | 10.61% | 10.99% | 11.05% | 11.48% | 11.82% | 10.72% | 9.37% | 7.03% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 23.35% | 22.24% | 21.91% | 21.13% | 20.23% | 18.34% | 16.82% | 15.91% | 15.86% | 16.42% | 18.70% | 20.28% | 20.87% | 21.16% | 20.33% | 18.76% | 15.70% | 12.60% | — | — | — | |||||||
| Comcast Corp. | 5.87% | 6.08% | 5.44% | 5.75% | 5.85% | 5.81% | 5.80% | 2.48% | 2.18% | 2.09% | 2.12% | 5.26% | 5.25% | 5.13% | 5.23% | 4.50% | 4.21% | 3.85% | — | — | — | |||||||
| Meta Platforms Inc. | 23.78% | 22.59% | 21.66% | 22.34% | 20.53% | 17.03% | 13.75% | 10.91% | 11.62% | 12.49% | 16.12% | 19.81% | 22.74% | 23.72% | 23.77% | 22.83% | 20.63% | 18.29% | — | — | — | |||||||
| Take-Two Interactive Software Inc. | -29.36% | -30.65% | -9.74% | -9.95% | -7.90% | -7.09% | -2.39% | -0.60% | 0.91% | 6.39% | 8.27% | 8.52% | 10.34% | 9.77% | 8.26% | 8.13% | 8.32% | 8.17% | — | — | — | |||||||
| Walt Disney Co. | 2.85% | 2.53% | 2.41% | 0.87% | 1.51% | 1.15% | 1.11% | 2.01% | 1.64% | 1.54% | 1.54% | 1.31% | 1.52% | 0.98% | 0.56% | -2.25% | -2.45% | -1.42% | -0.53% | 2.61% | 5.16% | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
ROA = 100
× (Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024
+ Net incomeQ2 2024)
÷ Total assets
= 100 × (2,890,351 + 1,868,607 + 2,363,509 + 2,147,306)
÷ 52,087,644 = 17.80%
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the quarterly performance over the observed periods. Net income shows considerable fluctuations, with periods of significant increase followed by marked declines. For instance, net income peaks sharply at 1,706,715 thousand US dollars in the first quarter of 2021 and then declines substantially to 607,429 thousand US dollars by the end of the same year. Subsequent quarters demonstrate a recovery trend, with net income reaching new highs such as 2,892,351 thousand US dollars by the first quarter of 2025.
Total assets exhibit a generally upward trajectory across the periods, moving from 35,059,910 thousand US dollars at the start of 2020 to a peak just over 53,630,374 thousand US dollars by mid-2024, although there is a slight dip in the final quarter of 2024 and into early 2025. This increase indicates steady asset base growth despite some volatility in the latter periods.
Return on assets (ROA) data, available from March 31, 2020, onwards, shows a consistent upward trend. Beginning around 7.03%, the ROA improves significantly over time, reaching an impressive 17.8% by the first quarter of 2025. This improvement suggests enhanced efficiency in generating profit from assets throughout the observed timeline.
- Net Income
- Demonstrates strong cyclical variations with several peaks and troughs but ultimately trends upward, indicating periods of accelerated profit growth interspersed with contractions.
- Total Assets
- Displays a steady increase overall, reflective of expanding asset holdings, with slight reductions in late periods possibly signifying asset optimization or disposals.
- Return on Assets (ROA)
- Shows a clear and continuous increase, highlighting improved profitability relative to asset base and greater operational effectiveness over time.
Combined, these trends suggest a company experiencing significant growth in profitability and asset base, with improved asset utilization efficiency. The volatility observed in net income could be related to external market conditions or internal strategic decisions, while the increase in ROA points to a strengthening operational performance.