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: 2025-06-30), 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 financial performance indicators exhibit notable fluctuations and trends over the analyzed periods, particularly from March 2020 onward. Each profitability and return metric reflects varying degrees of improvement and occasional declines, revealing insights into operational efficiency, profitability, and asset utilization.
- Gross Profit Margin
- The gross profit margin started at 38.89% in March 2021, showing an increasing trend until it peaked around 43.22% in December 2020 and then experienced a gradual decline reaching approximately 39.37% in March 2023. Following this decline, it shows a significant recovery, increasing steadily to reach 48.49% by June 2025. This suggests improving cost management or favorable pricing conditions driving higher margins in the later periods.
- Operating Profit Margin
- Operating profit margin followed a similar trajectory, starting from 18.34% in March 2021 and rising to a high of 22.76% in December 2020. After a decline to about 16.85% in March 2023, the margin rebounds steadily, reaching 29.51% by June 2025. The overall upward trend indicates enhanced operational efficiencies and controlling operating expenses relative to revenue, especially in the latter periods.
- Net Profit Margin
- The net profit margin started at 11.05% in March 2021, moving upward to 17.64% by December 2020 before experiencing a downtrend to 13.16% in June 2023. Subsequently, it increased consistently, achieving 24.58% by June 2025. The rising net margin in recent periods reflects strengthening bottom-line profitability, potentially due to improved operating results and possibly favorable tax or financing conditions.
- Return on Equity (ROE)
- The ROE showed a peak at 32.98% in December 2020 from an initial 24.96% in March 2021, followed by a decline to 18.60% by September 2023. It restarted an upward course thereafter, with a steady rise culminating at 41.07% by June 2025. This metric reveals enhanced effectiveness in generating returns for shareholders especially in the recent years, which may indicate improved profitability and efficient equity management.
- Return on Assets (ROA)
- ROA started at 7.03% in March 2021, increased to a peak of 11.82% in December 2020, then declined to 8.36% by September 2023. From that point onward, it followed a recovery path, reaching 19.30% by June 2025. The trend reflects better utilization of assets to generate earnings, highlighting operational improvements and possibly better asset management or profitable asset deployment in the most recent periods.
Overall, the data illustrate a period of volatility in profitability and returns metrics with significant improvement in the later periods across all observed margins and return ratios. This suggests enhanced operational performance, cost control, asset utilization, and shareholder value creation over time.
Return on Sales
Return on Investment
Gross Profit Margin
Netflix Inc., gross profit margin calculation (quarterly data)
| Jun 30, 2025 | 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 | 5,753,855) | 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 | 11,079,166) | 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 | 48.49% | 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. | 58.94% | 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. | 70.82% | 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. | 81.95% | 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% | — | — | — | |||||||
| Walt Disney Co. | 37.10% | 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: 2025-06-30), 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 Q2 2025 Calculation
Gross profit margin = 100
× (Gross profitQ2 2025
+ Gross profitQ1 2025
+ Gross profitQ4 2024
+ Gross profitQ3 2024)
÷ (RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024)
= 100 × (5,753,855 + 5,279,654 + 4,479,149 + 4,704,819)
÷ (11,079,166 + 10,542,801 + 10,246,513 + 9,824,703)
= 48.49%
2 Click competitor name to see calculations.
The gross profit and revenues of the company exhibit a general upward trend over the analyzed periods, indicating consistent growth in both absolute profits and sales figures. Gross profit increased from approximately 2.17 billion US dollars in the first quarter of 2020 to over 5.75 billion US dollars by the second quarter of 2025. Similarly, revenues rose from about 5.77 billion US dollars in the first quarter of 2020 to nearly 11.08 billion US dollars by the second quarter of 2025.
The gross profit margin shows a notable improvement over time. While early data points are missing, beginning from the first quarter of 2021, the margin was recorded at 38.89%. This figure steadily increased, surpassing 40% throughout most of 2021 and into 2022. The margin continued to improve each subsequent quarter, reaching 48.49% by the second quarter of 2025. This progression indicates enhanced cost efficiency or pricing power over the period, allowing for higher profitability relative to revenue.
There are some quarters where gross profit and revenues show fluctuations. For instance, the fourth quarter of 2020 recorded a drop in gross profit despite an increase in revenue compared to the previous quarter, suggesting possible margin pressures during that time. Similarly, in late 2022, both gross profit and revenues faced slight declines or plateaus before resuming upward trends. Such variations could be attributable to seasonal factors, changes in cost structure, or shifts in market dynamics.
Overall, the financial data reflect a strong growth trajectory in revenue accompanied by improving profitability, as indicated by increasing gross profit margins. This suggests successful management of costs relative to sales and potentially effective strategies in expanding the company’s market position during the reported periods.
- Gross Profit
- Increased from approximately 2.17 billion US dollars in early 2020 to 5.75 billion US dollars by mid-2025, evidencing substantial growth.
- Revenues
- Rose steadily from about 5.77 billion US dollars in early 2020 to nearly 11.08 billion US dollars in mid-2025, reflecting business expansion.
- Gross Profit Margin
- Improved consistently from 38.89% in early 2021 to 48.49% by the middle of 2025, highlighting enhanced profitability and operational efficiency.
- Trend Fluctuations
- Some quarters showed temporary declines or slower growth in gross profit and revenues, suggesting occasional margin pressures or market challenges.
Operating Profit Margin
Netflix Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2025 | 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 | 3,774,694) | 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 | 11,079,166) | 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 | 29.51% | 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. | 32.68% | 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. | 18.12% | 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. | 44.02% | 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% | — | — | — | |||||||
| Walt Disney Co. | 12.64% | 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: 2025-06-30), 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 Q2 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2025
+ Operating incomeQ1 2025
+ Operating incomeQ4 2024
+ Operating incomeQ3 2024)
÷ (RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024)
= 100 × (3,774,694 + 3,346,999 + 2,272,766 + 2,909,477)
÷ (11,079,166 + 10,542,801 + 10,246,513 + 9,824,703)
= 29.51%
2 Click competitor name to see calculations.
The financial data displays a dynamic pattern in both revenues and operating income over the examined quarters.
- Revenues
- There is a consistent upward trend in revenues from the first quarter of 2020 through the projected quarters of 2025. The figures increase steadily from approximately $5.77 billion to over $11.08 billion by the first half of 2025, reflecting ongoing growth in the company's top line.
- Operating Income
- Operating income exhibits a more fluctuating pattern compared to revenues. Initially, it increases significantly from around $958 million in early 2020 to approximately $1.96 billion by the first quarter of 2021, followed by a noticeable decline towards the end of 2021, dropping below $632 million. From 2022 onwards, operating income generally trends upward again with some quarterly variations, reaching a peak near $3.77 billion by mid-2025. This suggests periods of both strong operational performance and temporary downturns but an overall positive momentum.
- Operating Profit Margin
- The operating profit margin percentages—which start being reported from early 2021 onwards—display a general upward trajectory. Margins improve from approximately 18.3% to nearly 29.5% by mid-2025. This continuous increase indicates improving efficiency or profitability relative to revenues over time, suggesting effective cost management or favorable business conditions.
In summary, the analyzed data indicates strong revenue growth accompanied by improving operating profitability. Despite some volatility in operating income, the overall pattern reflects enhanced operational performance and higher profit margins, which are projected to advance further through 2025.
Net Profit Margin
Netflix Inc., net profit margin calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | 3,125,413) | 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 | 11,079,166) | 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 | 24.58% | 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. | 31.12% | 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. | 18.44% | 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. | 39.99% | 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% | — | — | — | |||||||
| Walt Disney Co. | 9.47% | 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: 2025-06-30), 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 Q2 2025 Calculation
Net profit margin = 100
× (Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024)
÷ (RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024)
= 100 × (3,125,413 + 2,890,351 + 1,868,607 + 2,363,509)
÷ (11,079,166 + 10,542,801 + 10,246,513 + 9,824,703)
= 24.58%
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibit a generally upward trend over the entire period from March 31, 2020 to June 30, 2025. Starting at approximately 5.77 billion USD, revenues increase steadily each quarter, reaching over 11.07 billion USD by the end of the observed timeframe. The growth appears consistent, with no significant declines or reversals, suggesting stable and sustained revenue expansion.
- Net Income
- Net income demonstrates more volatility compared to revenues. There are notable fluctuations, particularly around the end of calendar years where some quarters show decreased or relatively lower net income. Despite this, the overall trend from the beginning to the end of the period is strongly positive, with net income increasing from roughly 709 million USD in early 2020 to approximately 3.13 billion USD in mid-2025. There are periods of sharp increases and some downturns, for example, a noticeable drop at the end of 2020 and late 2022, with recovery and growth resuming thereafter.
- Net Profit Margin
- The net profit margin is only available from March 31, 2021 onward and shows a clear upward trajectory throughout the reported timeframe. Starting at around 11.05%, the margin steadily improves each quarter, reaching nearly 24.58% by June 30, 2025. This indicates increasing efficiency or profitability relative to revenues, reflecting either improved cost management, higher pricing power, or a change in business mix toward more profitable segments.
- Overall Financial Performance
- The data indicates that while revenues rise steadily, net income has been more variable but with strong growth over the long term. The increasing net profit margin from early 2021 demonstrates that profitability is improving not only in absolute terms but also relative to sales. This combination suggests enhanced operational performance and financial health, with the company managing to grow revenue while also increasing profit margins. Volatility in net income quarters may relate to seasonal factors or investments impacting quarterly results.
Return on Equity (ROE)
Netflix Inc., ROE calculation (quarterly data)
| Jun 30, 2025 | 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 | 3,125,413) | 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 | 24,951,899) | 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 | 41.07% | 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. | 31.85% | 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. | 23.65% | 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. | 36.66% | 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% | — | — | — | |||||||
| Walt Disney Co. | 8.54% | 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: 2025-06-30), 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 Q2 2025 Calculation
ROE = 100
× (Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024)
÷ Stockholders’ equity
= 100 × (3,125,413 + 2,890,351 + 1,868,607 + 2,363,509)
÷ 24,951,899 = 41.07%
2 Click competitor name to see calculations.
The net income demonstrates a generally upward trend with noticeable fluctuations throughout the periods. Initially, net income rose steadily until the fourth quarter of 2020, peaking at 1,707,715 US$ in thousands in the first quarter of 2021. However, a significant drop occurred in the fourth quarter of 2021 to 607,429 US$ in thousands, followed by a recovery in subsequent quarters. The net income again shows an increasing pattern from the first quarter of 2023, reaching its highest levels in the first two quarters of 2025, with 2,890,351 and 3,125,413 US$ in thousands respectively.
Stockholders’ equity exhibits consistent growth over the entire period analyzed. Starting from 8,409,294 US$ in thousands in the first quarter of 2020, it generally increased every quarter, reaching a peak of 24,951,899 US$ in thousands by the last quarter of 2025. There are minor decreases and plateaus in specific quarters, such as the slight dip in the fourth quarter of 2023 and minor fluctuations afterward, but the overall trend is upward, indicating a strengthening of the company's financial base.
The Return on Equity (ROE) data begins being available from the first quarter of 2021, showing high values that primarily fluctuate within a relatively high range. ROE starts at 24.96%, rises to a peak of 32.98% in the fourth quarter of 2021, and then gradually declines over the next year to a low of 18.60% in the third quarter of 2023. From late 2023 onwards, ROE shows a marked increasing trend, rising to 41.07% in the last reported quarter of 2025. This increasing ROE combined with rising net income and equity suggests improved profitability and efficient use of equity capital in the later periods.
In summary, the data reveals strong growth in net income and stockholders' equity over the analyzed period, with some volatility in quarterly net income values. The ROE indicates overall solid and improving returns on equity, though with some temporary declines. The financial performance trends suggest effective financial management and growth in shareholder value over the years.
- Net Income
- General upward trend with fluctuations; peak values in early and late 2025; notable decline in late 2020 and late 2021 periods.
- Stockholders’ Equity
- Consistent growth from approximately 8.4 billion to nearly 25 billion US$; minor fluctuations with an overall positive trajectory.
- Return on Equity (ROE)
- High starting values followed by a decline through 2022-2023; significant recovery and growth into 2025, finishing above 40%.
Return on Assets (ROA)
Netflix Inc., ROA calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | 3,125,413) | 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 | 53,099,664) | 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 | 19.30% | 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. | 23.02% | 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. | 8.36% | 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. | 24.26% | 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% | — | — | — | |||||||
| Walt Disney Co. | 4.55% | 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: 2025-06-30), 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 Q2 2025 Calculation
ROA = 100
× (Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024)
÷ Total assets
= 100 × (3,125,413 + 2,890,351 + 1,868,607 + 2,363,509)
÷ 53,099,664 = 19.30%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals important trends related to net income, total assets, and return on assets (ROA) over the observed periods.
- Net Income
- The net income demonstrates a fluctuating yet generally upward trajectory across the quarters. Starting with approximately 709 million US dollars in the first quarter of 2020, the figure increases with some variability, peaking notably at over 1.7 billion US dollars in the first quarter of 2021. A decline follows in subsequent quarters during 2021 and 2022, reaching a low point of about 55 million in the final quarter of 2022. From 2023 onward, net income shows a strong recovery with a consistent increase, surpassing 3 billion US dollars by mid-2025. This suggests improved profitability and effective cost management or revenue growth in recent periods.
- Total Assets
- Total assets display a steady growth over the full timeframe, beginning at roughly 35 billion US dollars in the first quarter of 2020 and rising almost continuously to reach over 53 billion US dollars by mid-2025. Minor fluctuations are observed around late 2023 and early 2024 but do not interrupt the overall upward trend. This sustained asset growth indicates ongoing investment and expansion in the company’s resource base.
- Return on Assets (ROA)
- ROA data is partially available starting from the first quarter of 2021, where it registers at 7.03%. A clear upward trend is noticeable throughout the subsequent quarters, rising to over 19% by the last recorded period in mid-2025. This pattern indicates improving efficiency in asset utilization to generate profit, reflecting positively on the company’s operational performance over time.
Overall, the company exhibits increasing profitability, asset base expansion, and improved efficiency in asset utilization. The temporary dip in net income during late 2021 to 2022 is followed by a strong recovery phase, which alongside steadily growing total assets and a rising ROA, highlights a positive financial progression through the examined periods.