Stock Analysis on Net
Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Netflix Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 34.25% = 14.88% × 2.30
Jun 30, 2024 32.08% = 14.45% × 2.22
Mar 31, 2024 30.12% = 13.18% × 2.29
Dec 31, 2023 26.27% = 11.10% × 2.37
Sep 30, 2023 20.47% = 9.14% × 2.24
Jun 30, 2023 18.60% = 8.36% × 2.23
Mar 31, 2023 19.24% = 8.49% × 2.27
Dec 31, 2022 21.62% = 9.24% × 2.34
Sep 30, 2022 24.57% = 10.61% × 2.32
Jun 30, 2022 26.71% = 10.99% × 2.43
Mar 31, 2022 28.54% = 11.05% × 2.58
Dec 31, 2021 32.28% = 11.48% × 2.81
Sep 30, 2021 32.98% = 11.82% × 2.79
Jun 30, 2021 31.68% = 10.72% × 2.96
Mar 31, 2021 29.18% = 9.37% × 3.11
Dec 31, 2020 24.96% = 7.03% × 3.55
Sep 30, 2020 27.16% = 7.27% × 3.74
Jun 30, 2020 28.73% = 7.21% × 3.98
Mar 31, 2020 26.54% = 6.37% × 4.17
Dec 31, 2019 24.62% = 5.49% × 4.48
Sep 30, 2019 — = — × 4.51
Jun 30, 2019 — = — × 4.94
Mar 31, 2019 — = — × 4.77

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Netflix Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 34.25% = 20.70% × 0.72 × 2.30
Jun 30, 2024 32.08% = 19.54% × 0.74 × 2.22
Mar 31, 2024 30.12% = 18.42% × 0.72 × 2.29
Dec 31, 2023 26.27% = 16.04% × 0.69 × 2.37
Sep 30, 2023 20.47% = 13.82% × 0.66 × 2.24
Jun 30, 2023 18.60% = 13.22% × 0.63 × 2.23
Mar 31, 2023 19.24% = 13.16% × 0.64 × 2.27
Dec 31, 2022 21.62% = 14.21% × 0.65 × 2.34
Sep 30, 2022 24.57% = 16.03% × 0.66 × 2.32
Jun 30, 2022 26.71% = 16.42% × 0.67 × 2.43
Mar 31, 2022 28.54% = 16.47% × 0.67 × 2.58
Dec 31, 2021 32.28% = 17.23% × 0.67 × 2.81
Sep 30, 2021 32.98% = 17.64% × 0.67 × 2.79
Jun 30, 2021 31.68% = 15.92% × 0.67 × 2.96
Mar 31, 2021 29.18% = 14.24% × 0.66 × 3.11
Dec 31, 2020 24.96% = 11.05% × 0.64 × 3.55
Sep 30, 2020 27.16% = 11.78% × 0.62 × 3.74
Jun 30, 2020 28.73% = 11.85% × 0.61 × 3.98
Mar 31, 2020 26.54% = 10.43% × 0.61 × 4.17
Dec 31, 2019 24.62% = 9.26% × 0.59 × 4.48
Sep 30, 2019 — = — × — × 4.51
Jun 30, 2019 — = — × — × 4.94
Mar 31, 2019 — = — × — × 4.77

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Netflix Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 34.25% = 0.87 × 0.93 × 25.76% × 0.72 × 2.30
Jun 30, 2024 32.08% = 0.87 × 0.92 × 24.45% × 0.74 × 2.22
Mar 31, 2024 30.12% = 0.88 × 0.91 × 23.04% × 0.72 × 2.29
Dec 31, 2023 26.27% = 0.87 × 0.90 × 20.48% × 0.69 × 2.37
Sep 30, 2023 20.47% = 0.89 × 0.88 × 17.69% × 0.66 × 2.24
Jun 30, 2023 18.60% = 0.88 × 0.87 × 17.12% × 0.63 × 2.23
Mar 31, 2023 19.24% = 0.88 × 0.87 × 17.07% × 0.64 × 2.27
Dec 31, 2022 21.62% = 0.85 × 0.88 × 18.88% × 0.65 × 2.34
Sep 30, 2022 24.57% = 0.87 × 0.89 × 20.65% × 0.66 × 2.32
Jun 30, 2022 26.71% = 0.88 × 0.89 × 21.13% × 0.67 × 2.43
Mar 31, 2022 28.54% = 0.87 × 0.88 × 21.52% × 0.67 × 2.58
Dec 31, 2021 32.28% = 0.88 × 0.88 × 22.24% × 0.67 × 2.81
Sep 30, 2021 32.98% = 0.87 × 0.88 × 22.94% × 0.67 × 2.79
Jun 30, 2021 31.68% = 0.88 × 0.86 × 20.94% × 0.67 × 2.96
Mar 31, 2021 29.18% = 0.85 × 0.85 × 19.76% × 0.66 × 3.11
Dec 31, 2020 24.96% = 0.86 × 0.81 × 15.87% × 0.64 × 3.55
Sep 30, 2020 27.16% = 0.99 × 0.79 × 15.07% × 0.62 × 3.74
Jun 30, 2020 28.73% = 0.90 × 0.81 × 16.37% × 0.61 × 3.98
Mar 31, 2020 26.54% = 0.91 × 0.78 × 14.64% × 0.61 × 4.17
Dec 31, 2019 24.62% = 0.91 × 0.77 × 13.34% × 0.59 × 4.48
Sep 30, 2019 — = — × — × — × — × 4.51
Jun 30, 2019 — = — × — × — × — × 4.94
Mar 31, 2019 — = — × — × — × — × 4.77

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Netflix Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 14.88% = 20.70% × 0.72
Jun 30, 2024 14.45% = 19.54% × 0.74
Mar 31, 2024 13.18% = 18.42% × 0.72
Dec 31, 2023 11.10% = 16.04% × 0.69
Sep 30, 2023 9.14% = 13.82% × 0.66
Jun 30, 2023 8.36% = 13.22% × 0.63
Mar 31, 2023 8.49% = 13.16% × 0.64
Dec 31, 2022 9.24% = 14.21% × 0.65
Sep 30, 2022 10.61% = 16.03% × 0.66
Jun 30, 2022 10.99% = 16.42% × 0.67
Mar 31, 2022 11.05% = 16.47% × 0.67
Dec 31, 2021 11.48% = 17.23% × 0.67
Sep 30, 2021 11.82% = 17.64% × 0.67
Jun 30, 2021 10.72% = 15.92% × 0.67
Mar 31, 2021 9.37% = 14.24% × 0.66
Dec 31, 2020 7.03% = 11.05% × 0.64
Sep 30, 2020 7.27% = 11.78% × 0.62
Jun 30, 2020 7.21% = 11.85% × 0.61
Mar 31, 2020 6.37% = 10.43% × 0.61
Dec 31, 2019 5.49% = 9.26% × 0.59
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2024 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Netflix Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2024 14.88% = 0.87 × 0.93 × 25.76% × 0.72
Jun 30, 2024 14.45% = 0.87 × 0.92 × 24.45% × 0.74
Mar 31, 2024 13.18% = 0.88 × 0.91 × 23.04% × 0.72
Dec 31, 2023 11.10% = 0.87 × 0.90 × 20.48% × 0.69
Sep 30, 2023 9.14% = 0.89 × 0.88 × 17.69% × 0.66
Jun 30, 2023 8.36% = 0.88 × 0.87 × 17.12% × 0.63
Mar 31, 2023 8.49% = 0.88 × 0.87 × 17.07% × 0.64
Dec 31, 2022 9.24% = 0.85 × 0.88 × 18.88% × 0.65
Sep 30, 2022 10.61% = 0.87 × 0.89 × 20.65% × 0.66
Jun 30, 2022 10.99% = 0.88 × 0.89 × 21.13% × 0.67
Mar 31, 2022 11.05% = 0.87 × 0.88 × 21.52% × 0.67
Dec 31, 2021 11.48% = 0.88 × 0.88 × 22.24% × 0.67
Sep 30, 2021 11.82% = 0.87 × 0.88 × 22.94% × 0.67
Jun 30, 2021 10.72% = 0.88 × 0.86 × 20.94% × 0.67
Mar 31, 2021 9.37% = 0.85 × 0.85 × 19.76% × 0.66
Dec 31, 2020 7.03% = 0.86 × 0.81 × 15.87% × 0.64
Sep 30, 2020 7.27% = 0.99 × 0.79 × 15.07% × 0.62
Jun 30, 2020 7.21% = 0.90 × 0.81 × 16.37% × 0.61
Mar 31, 2020 6.37% = 0.91 × 0.78 × 14.64% × 0.61
Dec 31, 2019 5.49% = 0.91 × 0.77 × 13.34% × 0.59
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Netflix Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2024 20.70% = 0.87 × 0.93 × 25.76%
Jun 30, 2024 19.54% = 0.87 × 0.92 × 24.45%
Mar 31, 2024 18.42% = 0.88 × 0.91 × 23.04%
Dec 31, 2023 16.04% = 0.87 × 0.90 × 20.48%
Sep 30, 2023 13.82% = 0.89 × 0.88 × 17.69%
Jun 30, 2023 13.22% = 0.88 × 0.87 × 17.12%
Mar 31, 2023 13.16% = 0.88 × 0.87 × 17.07%
Dec 31, 2022 14.21% = 0.85 × 0.88 × 18.88%
Sep 30, 2022 16.03% = 0.87 × 0.89 × 20.65%
Jun 30, 2022 16.42% = 0.88 × 0.89 × 21.13%
Mar 31, 2022 16.47% = 0.87 × 0.88 × 21.52%
Dec 31, 2021 17.23% = 0.88 × 0.88 × 22.24%
Sep 30, 2021 17.64% = 0.87 × 0.88 × 22.94%
Jun 30, 2021 15.92% = 0.88 × 0.86 × 20.94%
Mar 31, 2021 14.24% = 0.85 × 0.85 × 19.76%
Dec 31, 2020 11.05% = 0.86 × 0.81 × 15.87%
Sep 30, 2020 11.78% = 0.99 × 0.79 × 15.07%
Jun 30, 2020 11.85% = 0.90 × 0.81 × 16.37%
Mar 31, 2020 10.43% = 0.91 × 0.78 × 14.64%
Dec 31, 2019 9.26% = 0.91 × 0.77 × 13.34%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in net profit margin ratio over Q3 2024 is the increase in operating profitability measured by EBIT margin ratio.