Stock Analysis on Net
Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Netflix Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Activity Ratio
Total Asset Turnover
Reported 0.73 0.69 0.65 0.67 0.64
Adjusted 0.75 0.71 0.66 0.67 0.65
Liquidity Ratio
Current Ratio
Reported 1.22 1.12 1.17 0.95 1.25
Adjusted 1.42 1.34 1.39 1.11 1.46
Solvency Ratios
Debt to Equity
Reported 0.63 0.71 0.69 0.97 1.47
Adjusted 0.72 0.80 0.78 1.07 1.60
Debt to Capital
Reported 0.39 0.41 0.41 0.49 0.60
Adjusted 0.42 0.45 0.44 0.52 0.61
Financial Leverage
Reported 2.17 2.37 2.34 2.81 3.55
Adjusted 2.09 2.26 2.22 2.63 3.34
Profitability Ratios
Net Profit Margin
Reported 22.34% 16.04% 14.21% 17.23% 11.05%
Adjusted 22.48% 14.86% 13.37% 17.87% 12.28%
Return on Equity (ROE)
Reported 35.21% 26.27% 21.62% 32.28% 24.96%
Adjusted 35.02% 23.81% 19.45% 31.47% 26.67%
Return on Assets (ROA)
Reported 16.24% 11.10% 9.24% 11.48% 7.03%
Adjusted 16.78% 10.55% 8.76% 11.98% 7.99%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Netflix Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Netflix Inc. adjusted current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Netflix Inc. adjusted debt-to-equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Netflix Inc. adjusted debt-to-capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Netflix Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Netflix Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Netflix Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Netflix Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Netflix Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Revenues 39,000,966 33,723,297 31,615,550 29,697,844 24,996,056
Total assets 53,630,374 48,731,992 48,594,768 44,584,663 39,280,359
Activity Ratio
Total asset turnover1 0.73 0.69 0.65 0.67 0.64
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted revenues2 39,078,810 33,901,605 31,670,869 29,789,194 25,189,303
Adjusted total assets3 52,340,214 47,731,232 48,333,227 44,436,568 38,691,268
Activity Ratio
Adjusted total asset turnover4 0.75 0.71 0.66 0.67 0.65

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Total asset turnover = Revenues ÷ Total assets
= 39,000,966 ÷ 53,630,374 = 0.73

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 39,078,810 ÷ 52,340,214 = 0.75

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Netflix Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Current assets 13,100,379 9,918,133 9,266,473 8,069,825 9,761,580
Current liabilities 10,755,400 8,860,655 7,930,974 8,488,966 7,805,785
Liquidity Ratio
Current ratio1 1.22 1.12 1.17 0.95 1.25
Adjusted
Selected Financial Data (US$ in thousands)
Current assets 13,100,379 9,918,133 9,266,473 8,069,825 9,761,580
Adjusted current liabilities2 9,234,587 7,417,686 6,666,313 7,279,624 6,687,793
Liquidity Ratio
Adjusted current ratio3 1.42 1.34 1.39 1.11 1.46

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 13,100,379 ÷ 10,755,400 = 1.22

2 Adjusted current liabilities. See details »

3 2024 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 13,100,379 ÷ 9,234,587 = 1.42

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Netflix Inc. adjusted current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Total debt 15,582,804 14,543,261 14,353,076 15,392,895 16,308,973
Stockholders’ equity 24,743,567 20,588,313 20,777,401 15,849,248 11,065,240
Solvency Ratio
Debt to equity1 0.63 0.71 0.69 0.97 1.47
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 17,994,974 16,973,374 16,931,564 18,116,570 18,510,826
Adjusted stockholders’ equity3 25,086,822 21,156,732 21,780,521 16,910,495 11,594,141
Solvency Ratio
Adjusted debt to equity4 0.72 0.80 0.78 1.07 1.60

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 15,582,804 ÷ 24,743,567 = 0.63

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 17,994,974 ÷ 25,086,822 = 0.72

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Netflix Inc. adjusted debt-to-equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Total debt 15,582,804 14,543,261 14,353,076 15,392,895 16,308,973
Total capital 40,326,371 35,131,574 35,130,477 31,242,143 27,374,213
Solvency Ratio
Debt to capital1 0.39 0.41 0.41 0.49 0.60
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 17,994,974 16,973,374 16,931,564 18,116,570 18,510,826
Adjusted total capital3 43,081,796 38,130,106 38,712,085 35,027,065 30,104,967
Solvency Ratio
Adjusted debt to capital4 0.42 0.45 0.44 0.52 0.61

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,582,804 ÷ 40,326,371 = 0.39

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 17,994,974 ÷ 43,081,796 = 0.42

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Netflix Inc. adjusted debt-to-capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Total assets 53,630,374 48,731,992 48,594,768 44,584,663 39,280,359
Stockholders’ equity 24,743,567 20,588,313 20,777,401 15,849,248 11,065,240
Solvency Ratio
Financial leverage1 2.17 2.37 2.34 2.81 3.55
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets2 52,340,214 47,731,232 48,333,227 44,436,568 38,691,268
Adjusted stockholders’ equity3 25,086,822 21,156,732 21,780,521 16,910,495 11,594,141
Solvency Ratio
Adjusted financial leverage4 2.09 2.26 2.22 2.63 3.34

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 53,630,374 ÷ 24,743,567 = 2.17

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 52,340,214 ÷ 25,086,822 = 2.09

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Netflix Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Net income 8,711,631 5,407,990 4,491,924 5,116,228 2,761,395
Revenues 39,000,966 33,723,297 31,615,550 29,697,844 24,996,056
Profitability Ratio
Net profit margin1 22.34% 16.04% 14.21% 17.23% 11.05%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 8,784,212 5,036,681 4,235,905 5,322,204 3,092,627
Adjusted revenues3 39,078,810 33,901,605 31,670,869 29,789,194 25,189,303
Profitability Ratio
Adjusted net profit margin4 22.48% 14.86% 13.37% 17.87% 12.28%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,711,631 ÷ 39,000,966 = 22.34%

2 Adjusted net income. See details »

3 Adjusted revenues. See details »

4 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenues
= 100 × 8,784,212 ÷ 39,078,810 = 22.48%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Netflix Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Net income 8,711,631 5,407,990 4,491,924 5,116,228 2,761,395
Stockholders’ equity 24,743,567 20,588,313 20,777,401 15,849,248 11,065,240
Profitability Ratio
ROE1 35.21% 26.27% 21.62% 32.28% 24.96%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 8,784,212 5,036,681 4,235,905 5,322,204 3,092,627
Adjusted stockholders’ equity3 25,086,822 21,156,732 21,780,521 16,910,495 11,594,141
Profitability Ratio
Adjusted ROE4 35.02% 23.81% 19.45% 31.47% 26.67%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 8,711,631 ÷ 24,743,567 = 35.21%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 8,784,212 ÷ 25,086,822 = 35.02%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Netflix Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in thousands)
Net income 8,711,631 5,407,990 4,491,924 5,116,228 2,761,395
Total assets 53,630,374 48,731,992 48,594,768 44,584,663 39,280,359
Profitability Ratio
ROA1 16.24% 11.10% 9.24% 11.48% 7.03%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 8,784,212 5,036,681 4,235,905 5,322,204 3,092,627
Adjusted total assets3 52,340,214 47,731,232 48,333,227 44,436,568 38,691,268
Profitability Ratio
Adjusted ROA4 16.78% 10.55% 8.76% 11.98% 7.99%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 8,711,631 ÷ 53,630,374 = 16.24%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 8,784,212 ÷ 52,340,214 = 16.78%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Netflix Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.