Netflix Financial Analysis and Financial Ratios

Quality Business Consultant's financial analysis expert, Paul Borosky, MBA., doctoral candidate, and published author, has created proprietary financial models to help analyze Netflix's financial performance using Netflix's summarized income statements and balance sheets for the last five years, found in their Annual Reports and Netflix's 10ks.

Further, our financial model also calculates over 10 popular financial ratios, such as Netflix's current ratio, return on equity, and debt ratio. This information is the basis of our financial report, "Netflix's Inc. Financial Report", where we offer insights into understanding Netflix's financial standing through insightful financial analysis.

A Beginner's Guide to Netflix Financial Analysis - 2021

Included Easy to download PDF File.
Included Easy to use format.
Included Summarized Income Statements and Balance Sheets for the last 5 years..
Included Popular financial ratios for the last 5 years included... with calculations and formulas!
Included Expert tips to help with financial statements analysis.
Included Expert tips to help with financial ratios analysis.
NOT Included-Identify and discuss financial trends for the company..
NOT Included-Expert financial analysis done by Paul Borosky, MBA.
NOT Included- Analyst "Letter Grades" for the company's ratios.

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Netflix Financial Report by Paul Borosky, MBA. - 2021

Included Easy to download PDF File.
Included Easy to use format.
Included Summarized Income Statements and Balance Sheets for the last 5 years..
Included Popular financial ratios for the last 5 years included... with calculations and formulas!
Included Expert tips to help with financial statements analysis.
Included Expert tips to help with financial ratios analysis.
Included Identify and discuss financial trends for the company.
Included Expert financial analysis done by Paul Borosky MBA.
Included Analyst "Letter Grades" for the company's ratios.

Get it Now

Netflix Financial Report and Financial Analysis

Beginner's Guide to Netflix 2021 Financial Analysis

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Netflix Beginner’s Guide 2021

Table of Contents

Disclaimer 3
Forward 4
Income Statement 6
Netflix’s Summarized Income Statements 6
Revenues 7
Cost of Goods Sold (COGS) 8
Selling, General, and Administrative Expenses (SG&A 8
Research and Development (R&D) 9
Operating Expenses 10
Earnings Before Interest and Taxes (EBIT 10
Interest Expense 11
Earnings Before Taxes (EBT) 12
Taxes 12
Net income 12
Tax Rate 13
Balance Sheet 15
Netflix’s Summarized Balance Sheets 15
Cash 16
Short-Term Investments 17
Accounts Receivables 17
Inventory 18
Current Assets 19
Property, Plant, and Equipment (PP&E) 20
Total Assets 20
Accounts Payable 21
Accrued Expenses 22
Short-Term Debt 23
Total Current Liabilities 24
Long Term Debt (LT Debt) 25
Total Liabilities 26
Common Stock and Additional Paid-in Capital 27
Treasury 27
Retained Earnings 28
Total Equity 29
Financial Ratios 30
Netflix’s Liquidity Ratios 31
Current Ratio 31
Quick Ratio 32
Cash Ratio 33
Netflix’s Asset Ratios 35
Total Asset Turnover 36
Fixed Asset Turnover 37
Days Sales Outstanding 37
Inventory Turnover 38
Accounts Receivable Turnover 39
Accounts Payable Turnover 40
Other Asset Ratio Calculations 41
Working Capital Turnover 41
Average Days in Inventory 41
Average Days Payable 41
Netflix’s Profitability Ratios 43
Return on Assets (ROA) 43
Return on Equity (ROE) 44
Net Profit Margin 45
Gross Profit Margin 46
Operating Profit Margin 46
Netflix’s Debt Ratios 48
Debt Ratio 48
Debt to Equity Ratio 49
Times Interest Earned 50

Netflix 2021 Financial Report by Paul Borosky, MBA.

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Downloadable PDF Price!!

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Netflix Financial Report 2021

Contents

Disclaimer 3
Forward 4
Income Statement 6
Netflix’s Summarized Income Statements 6
Revenues 7
Cost of Goods Sold (COGS) 8
Selling, General, and Administrative Expenses (SG&A 9
Research and Development (R&D) 10
Operating Expenses 11
Earnings Before Interest and Taxes (EBIT 12
Interest Expense 12
Earnings Before Taxes (EBT) 13
Taxes 13
Net income 14
Tax Rate 15
Balance Sheet 16
Netflix’s Summarized Balance Sheets 16
Cash 17
Short-Term Investments 18
Accounts Receivables 19
Inventory 20
Current Assets 20
Property, Plant, and Equipment (PP&E) 21
Total Assets 22
Accounts Payable 23
Accrued Expenses 24
Short-Term Debt 25
Total Current Liabilities 26
Long Term Debt (LT Debt) 27
Total Liabilities 28
Common Stock and Additional Paid-in Capital 29
Treasury 30
Retained Earnings 31
Total Equity 32
Financial Ratios 33
Netflix’s Liquidity Ratios 34
Current Ratio 34
Cash Ratio 35
Quick Ratio 36
Netflix’s Asset Ratios 38
Total Asset Turnover 39
Fixed Asset Turnover 40
Days Sales Outstanding 41
Inventory Turnover 42
Accounts Receivable Turnover 43
Accounts Payable Turnover 44
Other Asset Ratio Calculations 45
Working Capital Turnover 45
Average Days in Inventory 45
Average Days Payable 45
Netflix’s Profitability Ratios 47
Return on Assets (ROA) 47
Return on Equity (ROE) 48
Net Profit Margin 49
Gross Profit Margin 50
Operating Profit Margin 51
Netflix’s Debt Ratios 53
Debt Ratio 53
Debt to Equity Ratio 54
Times Interest Earned 55
Summary 57
Netflix’s Strengths 57
Netflix’s Weaknesses 57
Netflix’s Final Grade 57

Netflix Financial Report by Paul Borosky, MBA.

Hey All,

Thanks for considering my Netflix's Inc. Financial Report. In this report, you will be able to find preliminary information about Netflix's current financial performance as well as some historical track records and trends. Also, in this report, written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, you will find:

Summarized income statement for the last 5 years.
Summarized balance sheet for the last 5 years.
Summary analysis by myself of the important income statement, balance sheet, and financial ratio trends and other happenings.
Five years’ worth of over ten common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
Each section includes an “in other words” segment. This is where I use plain English to explain concepts.

Sincerely,

Paul, MBA.

Sample Report

Netflix's Income Statement Analysis Sample

In this section of the financial report, I walk you through a broad definition as to what an income statement is and why it is important. From this, I then discuss and define important income statement line items, such as revenues, gross profits, etc. in detail. Finally, I offer a summary analysis of the company's important income statement line item trends. For example,...

Netflix Cost of Goods Sold.

Netflix’s cost of goods sold as compared to revenues in 2017 was 65.5%. In the next four years, the organization’s cost of goods sold as compared to revenues would continually decline, ending 2021 at 58.4%. The decline in the cost of goods sold as compared to revenues shows that the firm is continually increasing its gross profit margin. This is an excellent trend.

Further, the organization’s cost of goods sold growth rate over the last five years, on average, was 22.8%. Comparing this with the organization’s revenue growth rate, which was 26.4% annually, on average, for the last five years, shows that the firm is again continually expanding its gross profit margin.

Analyst Grade: A

Netflix 2021 Summary Income Statement
Column1	2021	2020	2019	2018	2017
Revenues	29,697,844	24,996,056	20,156,447	15,794,341	11,692,713
COGS	17,332,683	15,276,319	12,440,213	9,967,538	7,659,666
Gross Profit	12,365,161	9,719,737	7,716,234	5,826,803	4,033,047

SG&A	1,351,621	1,076,486	914,369	630,294	431,043
Depreciation	208,412	115,710	103,579	83,157	71,911
R & D	2,273,885	1,829,600	1,545,149	1,221,814	953,710
Other	-	-	-	-	-
Total Operating Expenses	3,833,918	3,021,796	2,563,097	1,935,265	1,456,664
EBIT	6,194,509	4,585,289	2,604,254	1,605,226	838,679
Other Income	-	-	-	-	-
Interest Expense	765,620	767,499	626,023	420,493	238,204
EBT	5,840,103	3,199,349	2,062,231	1,226,458	485,321
Taxes	723,875	437,954	195,315	15,216	(73,608)
Net Income	5,116,228	2,761,395	1,866,916	1,211,242	558,929

Netflix's Balance Sheet Analysis Sample

In this section of the financial report, I walk you through a broad definition of what a balance sheet is and why it is important. From this, I then discuss and define important balance sheet line items, such as cash, inventory, etc., in detail. Finally, I offer a summary analysis of the company's important balance sheet line item trends. For example,...

Netflix Property, Plant, and Equipment

Netflix’s property, plant, and equipment (PP&E) were $319 million in 2017. In the next four years, the organization’s property, plant, and equipment would balloon to $1.3 billion in 2021. As compared to sales, the organization’s property, plant, and equipment was 21.9% in 2017. As of 2021, this percentage was 34.5%. This shows that the firm is acquiring property, plants, and equipment at a faster pace as compared to sales growth. This phenomenon may lead to the underutilization of company assets, specifically fixed assets, if the trend continues. From an investor’s perspective, this is a poor trend.

Analyst Grade: B

Netflix 2021 Summary Balance Sheet
Column1	2021	2020	2019	2018	2017
Cash	6,027,804	8,205,550	5,018,437	3,794,483	2,822,795
Short Term Investment	-	-	-	-	-
Account Receivable	-	-	-	-	-
Inventory	-	-	-	-	-
Other	-	-	-	-	-
Current Assets	8,069,825	9,761,580	6,178,504	9,694,135	7,669,974
Net PPE	1,323,453	960,183	565,221	418,291	319,404
Goodwill	-	-	-	-	-
Other	-	-	-	-	-
Total Assets	44,584,663	39,280,359	33,975,712	25,974,400	19,012,742

Accounts Payable	837,483	656,183	674,347	562,985	359,555
Accrued Expense	1,449,351	1,102,196	843,043	477,417	315,094
Accrued Taxes		-	-	-	-
Notes Payable	699,823	499,878	-	-	-
LT Debt - Current	-	-	-	-	-
Other	-	-	-	-	-
Total Current Liabilities	8,488,966	7,805,785	6,855,696	6,487,320	7,669,974

LT Debt	14,693,072	15,809,095	14,759,260	10,360,058	6,499,432
Other	-	-	-	-	-
Total Liabilities	28,735,415	28,215,119	26,393,555	20,735,635	15,430,786

Common Stock	4,024,561	3,447,698	2,793,929	2,315,988	1,871,396
Treasury	824,190	-	-	-	-
Retained Earnings	12,689,372	7,473,144	4,811,749	2,942,359	1,731,117
Other	-	-	-	-	-
Total Equity	15,849,248	11,065,240	7,582,157	5,238,765	3,581,956
Total Equity & Liability	44,584,663	39,280,359	33,975,712	25,974,400	19,012,742

Netflix's Financial Ratios Sample

In this section of the financial report, I walk you through definitions of various popular financial ratios, how to calculate the ratios, formulas used, etc. Also, for some popular financial ratios, I provide brief explanations of what the ratios mean as it is related to the company.

Netflix's Fixed Asset Turnover Ratio

Netflix’s fixed asset turnover was 36.6 in 2017. As of 2021, the firm’s fixed asset turnover would fall substantially, ending the year at 22.4. If the company is expecting substantial growth in the near to moderate term, then the decline in fixed asset turnover may be justifiable. However, this trend has continued for several years. From this, it’s almost evident that the company is underutilizing fixed assets. From an investor’s perspective, this is a poor trend.

Analyst Grade: C

Netflix's Return on Equity

Netflix’s return on equity (ROE) was 15.6% in 2017. For the next several years, the company would increase its return on equity, ending 2021 at 32.2%. This trend indicates that the company may be shifting its capital structure to rely more on debt as compared to equity. If this is the case, then the firm is also continually increasing its financial risk. From an investor’s perspective, this is a good trend.