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: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
The profitability metrics demonstrate a consistent upward trend over the observed period, spanning from March 2022 to March 2026. Initially, the metrics exhibited a period of relative stability or slight decline, followed by a marked improvement beginning in late 2022 and continuing through the forecast period. This suggests increasing efficiency in operations and potentially improved pricing strategies.
- Gross Profit Margin
- The gross profit margin experienced a gradual decline from 41.62% in March 2022 to a low of 38.30% in March 2023. However, a strong recovery commenced thereafter, steadily increasing to 49.03% by March 2026. This indicates improving cost management related to the production or sourcing of goods or services, or a shift towards higher-margin offerings.
- Operating Profit Margin
- Similar to the gross profit margin, the operating profit margin initially decreased from 20.41% in March 2022 to 16.85% in March 2023. A significant upward trajectory followed, culminating in a margin of 29.72% in March 2026. This improvement suggests effective control of operating expenses in addition to the improvements in gross margin.
- Net Profit Margin
- The net profit margin mirrored the trends observed in the gross and operating margins, declining from 16.47% in March 2022 to 13.16% in March 2023. A substantial increase then occurred, reaching 28.52% by March 2026. This indicates that improvements in core profitability are translating into higher net income.
- Return on Equity (ROE)
- ROE followed a similar pattern, decreasing from 28.54% in March 2022 to 19.24% in March 2023, before rising sharply to 42.97% in March 2026. This demonstrates an increasing ability to generate profit from shareholder investments.
- Return on Assets (ROA)
- ROA also exhibited the described trend, declining from 11.05% in March 2022 to 8.49% in March 2023, and then increasing to 21.92% by March 2026. This signifies a growing efficiency in utilizing assets to generate earnings.
Overall, the observed trends suggest a period of operational challenges in the earlier part of the analyzed timeframe, followed by a successful turnaround and sustained improvement in profitability across all measured ratios. The accelerating growth in profitability metrics towards the end of the period indicates a strengthening financial position.
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Return on Sales
Return on Investment
Gross Profit Margin
Netflix Inc., gross profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Gross profit | 6,361,519) | 5,528,141) | 5,346,057) | 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) | ||||||
| Revenues | 12,249,757) | 12,050,762) | 11,510,307) | 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 49.03% | 48.49% | 48.09% | 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% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | 60.37% | 59.65% | 59.17% | 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% | ||||||
| Comcast Corp. | 70.13% | 71.75% | 71.88% | 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% | ||||||
| Meta Platforms Inc. | 81.94% | 82.00% | 82.00% | 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% | ||||||
| Trade Desk Inc. | 77.83% | 78.63% | 78.81% | 79.41% | 80.11% | 80.69% | 81.06% | 81.23% | 81.29% | 81.21% | 81.18% | 81.46% | 81.64% | 82.18% | 81.90% | 81.88% | 81.82% | ||||||
| Walt Disney Co. | 37.28% | 37.76% | 37.61% | 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% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Gross profit margin = 100
× (Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025)
÷ (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
= 100 × (6,361,519 + 5,528,141 + 5,346,057 + 5,753,855)
÷ (12,249,757 + 12,050,762 + 11,510,307 + 11,079,166)
= 49.03%
2 Click competitor name to see calculations.
The gross profit margin exhibited a generally increasing trend over the observed period, beginning in March 2022 and continuing through December 2025. While fluctuations occurred, the overall trajectory indicates improving profitability from revenue generation.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The gross profit margin began at 41.62% in March 2022 and experienced a gradual decline, reaching 39.37% by December 2022. This suggests potential pressures on input costs or pricing during this timeframe, despite relatively stable revenue figures.
- Recovery and Growth (Mar 31, 2023 – Dec 31, 2024)
- From March 2023, the gross profit margin began to recover, increasing from 38.30% to 46.06% by December 2024. This improvement coincided with increasing revenues and gross profit, indicating enhanced operational efficiency or successful pricing strategies. The most significant increase occurred between September 2023 and December 2024.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- The gross profit margin continued its upward trend, reaching 48.49% in June 2025, before slightly decreasing to 48.09% in September 2025, and stabilizing at 48.49% in December 2025. This suggests a sustained level of profitability. The margin then increased to 49.03% by March 2026.
- Overall Trend
- The gross profit margin increased from 41.62% in March 2022 to 49.03% in March 2026. This represents a substantial improvement in profitability over the period, indicating the company’s ability to effectively manage costs and/or increase pricing power. The rate of increase was not consistent, with periods of decline followed by more pronounced growth.
The observed increases in gross profit margin, particularly in the later periods, warrant further investigation to determine the underlying drivers. These could include economies of scale, improved content sourcing strategies, or changes in the revenue mix.
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Operating Profit Margin
Netflix Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Operating income | 3,956,997) | 2,956,663) | 3,248,247) | 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) | ||||||
| Revenues | 12,249,757) | 12,050,762) | 11,510,307) | 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 29.72% | 29.49% | 29.14% | 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% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | 32.69% | 32.03% | 32.19% | 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% | ||||||
| Comcast Corp. | 15.29% | 16.71% | 17.98% | 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% | ||||||
| Meta Platforms Inc. | 41.21% | 41.44% | 43.23% | 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% | ||||||
| Trade Desk Inc. | 20.26% | 20.35% | 18.91% | 17.73% | 17.63% | 17.47% | 16.29% | 14.05% | 12.29% | 10.30% | 8.53% | 8.50% | 6.53% | 7.20% | -0.80% | 2.86% | 7.74% | ||||||
| Walt Disney Co. | 13.53% | 13.78% | 12.69% | 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% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025)
÷ (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
= 100 × (3,956,997 + 2,956,663 + 3,248,247 + 3,774,694)
÷ (12,249,757 + 12,050,762 + 11,510,307 + 11,079,166)
= 29.72%
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally increasing trend over the observed period, beginning in March 2022 and continuing through December 2025. While fluctuations occurred, the overall trajectory indicates improving profitability from operations.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The operating profit margin began at 20.41% in March 2022 and experienced a gradual decline, reaching 17.82% by December 2022. This suggests a period of increasing operational costs relative to revenue, or potentially pricing pressures.
- Recovery and Growth (Mar 31, 2023 – Dec 31, 2024)
- From March 2023, the operating profit margin demonstrated a recovery, increasing from 16.85% to 26.71% by December 2024. This indicates successful implementation of cost control measures, revenue growth outpacing cost increases, or a combination of both. The increase was particularly notable between September 2023 and December 2024.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- The operating profit margin continued to remain strong, peaking at 29.51% in June 2025, before slightly decreasing to 29.49% in December 2025. This suggests sustained operational efficiency and profitability. The margin remained above 29% throughout the latter half of 2025.
- Overall Trend
- The operating profit margin increased from 20.41% in March 2022 to 29.49% in December 2025, representing a substantial improvement in operational profitability over the period. The most significant gains were observed from early 2023 onwards.
The observed trend suggests a strengthening of the company’s ability to generate profit from its core operations. Continued monitoring of this metric will be important to assess the sustainability of these improvements.
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Net Profit Margin
Netflix Inc., net profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income | 5,282,791) | 2,418,521) | 2,546,916) | 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) | ||||||
| Revenues | 12,249,757) | 12,050,762) | 11,510,307) | 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 28.52% | 24.30% | 24.05% | 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% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | 37.92% | 32.81% | 32.23% | 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% | ||||||
| Comcast Corp. | 15.00% | 16.17% | 18.33% | 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% | ||||||
| Meta Platforms Inc. | 32.84% | 30.08% | 30.89% | 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% | ||||||
| Trade Desk Inc. | 14.57% | 15.31% | 15.72% | 15.57% | 16.04% | 16.08% | 13.34% | 11.65% | 9.80% | 9.19% | 8.35% | 7.46% | 4.70% | 3.38% | -0.66% | 2.43% | 7.78% | ||||||
| Walt Disney Co. | 12.80% | 13.14% | 12.22% | 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% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
Net profit margin = 100
× (Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025)
÷ (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
= 100 × (5,282,791 + 2,418,521 + 2,546,916 + 3,125,413)
÷ (12,249,757 + 12,050,762 + 11,510,307 + 11,079,166)
= 28.52%
2 Click competitor name to see calculations.
The net profit margin exhibited a generally increasing trend over the observed period, although with some fluctuations. Initial values were relatively stable before a noticeable improvement in the latter half of the analyzed timeframe.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The net profit margin began at 16.47% and experienced a slight decline to 14.21% by December 31, 2022. While fluctuations occurred, the margin remained within a relatively narrow range during this period, suggesting consistent profitability despite minor variations in revenue and net income.
- Recovery and Growth (Mar 31, 2023 – Dec 31, 2024)
- From March 31, 2023, the net profit margin began a consistent upward trajectory. Starting at 13.16%, it rose to 22.34% by December 31, 2024. This indicates improving operational efficiency and/or increased pricing power. The growth was particularly strong between September 30, 2023, and December 31, 2024.
- Continued Expansion (Mar 31, 2025 – Dec 31, 2025)
- The upward trend continued into 2025, reaching a peak of 24.58% in June 30, 2025. A slight decrease to 24.30% was observed by December 31, 2025, but the margin remained at a high level.
- Significant Increase (Mar 31, 2026)
- A substantial increase in net profit margin was observed as of March 31, 2026, reaching 28.52%. This represents the highest value within the analyzed period and suggests a significant improvement in profitability, potentially driven by cost control measures or substantial revenue growth exceeding expense increases.
Overall, the net profit margin demonstrates a positive trend, indicating increasing profitability over time. The most significant gains occurred in the period following March 31, 2023, culminating in a substantial increase by March 31, 2026. The fluctuations observed throughout the period suggest sensitivity to changes in revenue and net income, but the overall direction is clearly upward.
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Return on Equity (ROE)
Netflix Inc., ROE calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income | 5,282,791) | 2,418,521) | 2,546,916) | 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) | ||||||
| Stockholders’ equity | 31,126,399) | 26,615,488) | 25,954,035) | 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 42.97% | 41.26% | 40.19% | 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% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | 33.46% | 31.83% | 32.12% | 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% | ||||||
| Comcast Corp. | 21.29% | 20.64% | 23.29% | 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% | ||||||
| Meta Platforms Inc. | 28.97% | 27.83% | 30.16% | 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% | ||||||
| Trade Desk Inc. | 17.63% | 17.84% | 16.86% | 15.48% | 15.17% | 13.33% | 11.74% | 10.53% | 9.29% | 8.27% | 7.09% | 6.24% | 3.98% | 2.52% | -0.51% | 1.90% | 6.10% | ||||||
| Walt Disney Co. | 11.29% | 11.29% | 10.58% | 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% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
ROE = 100
× (Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025)
÷ Stockholders’ equity
= 100 × (5,282,791 + 2,418,521 + 2,546,916 + 3,125,413)
÷ 31,126,399 = 42.97%
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited a generally increasing trend over the observed period, although with notable fluctuations. Initial values demonstrate a strong ROE, followed by a period of decline, and then a substantial recovery and continued growth.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, the ROE experienced a consistent downward trend, decreasing from 28.54% to 21.62%. This decline occurred alongside fluctuations in net income, but was more pronounced than the changes in income alone, suggesting a corresponding impact from changes in stockholders’ equity.
- Stabilization and Recovery (Mar 31, 2023 – Dec 31, 2023)
- The period from March 31, 2023, to December 31, 2023, showed a stabilization and subsequent recovery in ROE. After reaching a low of 18.60% in June 2023, the ROE increased to 26.27% by December 2023. This recovery coincided with an increase in net income.
- Continued Growth (Mar 31, 2024 – Dec 31, 2025)
- ROE continued its upward trajectory from March 31, 2024, through December 31, 2025. The ROE increased from 30.12% to 41.26%, demonstrating a strong and sustained improvement in profitability relative to equity. This period was characterized by consistent growth in both net income and stockholders’ equity, with net income growth outpacing equity growth, contributing to the increasing ROE.
- Projection to Mar 31, 2026
- The ROE reached 42.97% by March 31, 2026, continuing the positive trend. This represents the highest ROE value observed within the analyzed timeframe, indicating a significant improvement in the company’s efficiency in generating profits from shareholders’ investments.
Overall, the ROE demonstrates a pattern of initial decline, followed by a robust recovery and sustained growth. The latter portion of the period indicates increasing efficiency in utilizing equity to generate profits.
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Return on Assets (ROA)
Netflix Inc., ROA calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income | 5,282,791) | 2,418,521) | 2,546,916) | 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) | ||||||
| Total assets | 61,015,914) | 55,596,993) | 54,934,835) | 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 21.92% | 19.75% | 18.99% | 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% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | 22.76% | 22.20% | 23.16% | 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% | ||||||
| Comcast Corp. | 7.23% | 7.34% | 8.28% | 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% | ||||||
| Meta Platforms Inc. | 17.86% | 16.52% | 19.26% | 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% | ||||||
| Trade Desk Inc. | 7.54% | 7.20% | 7.38% | 7.00% | 7.22% | 6.43% | 5.60% | 4.91% | 4.32% | 3.66% | 3.38% | 2.97% | 1.93% | 1.22% | -0.25% | 0.92% | 2.93% | ||||||
| Walt Disney Co. | 6.06% | 6.28% | 5.88% | 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% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q1 2026 Calculation
ROA = 100
× (Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025)
÷ Total assets
= 100 × (5,282,791 + 2,418,521 + 2,546,916 + 3,125,413)
÷ 61,015,914 = 21.92%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a generally increasing trend over the observed period, though with notable fluctuations. Initial values demonstrated a relatively stable ROA, followed by a period of growth and then a recent surge.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ROA began at 11.05% and experienced a slight decline to 9.24% over this timeframe. This suggests a modest decrease in profitability relative to the company’s asset base during this period. The decline was gradual, indicating no immediate cause for concern, but warrants monitoring.
- Stabilization and Early Growth (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 through December 2023, the ROA showed a recovery and moderate growth, increasing from 8.49% to 11.10%. This indicates improved efficiency in utilizing assets to generate income. The increase was not linear, with some quarterly variations, but the overall trend was positive.
- Accelerated Growth (Mar 31, 2024 – Dec 31, 2025)
- A significant upward trend in ROA is observed from March 2024 to December 2025. The ROA rose from 13.18% to 19.75%. This substantial increase suggests a considerable improvement in the company’s ability to generate profits from its assets. The growth rate accelerated during this period, indicating a potentially positive shift in operational efficiency or strategic initiatives.
- Recent Peak (Mar 31, 2026)
- The ROA reached its highest point at 21.92% as of March 31, 2026. This represents a peak in profitability relative to asset utilization within the analyzed timeframe. The substantial increase from prior periods suggests a strong positive performance.
- Overall Trend
- The overall trend demonstrates a clear progression from a relatively stable, slightly declining ROA to a period of sustained and accelerating growth. The most recent data points indicate a significantly improved ability to generate returns from the asset base. The fluctuations observed throughout the period suggest sensitivity to underlying business conditions and strategic decisions.
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