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-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 ratios demonstrate a consistent upward trend over the observed period, spanning from March 31, 2022, to December 31, 2025. This improvement is evident across all measured metrics – gross profit margin, operating profit margin, net profit margin, return on equity, and return on assets. The most significant improvements appear to accelerate in the latter half of the period, particularly from September 30, 2023, onwards.
- Gross Profit Margin
- The gross profit margin exhibited a gradual decline from 41.62% in March 2022 to 38.30% in March 2023. However, a clear reversal began in the second quarter of 2023, with the margin steadily increasing to 48.49% by December 2025. This indicates improving cost management or pricing strategies.
- 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 strong recovery commenced in the second half of 2023, culminating in a margin of 29.49% by December 2025. This suggests enhanced operational efficiency and control of operating expenses.
- Net Profit Margin
- The net profit margin followed a comparable pattern, declining from 16.47% in March 2022 to 13.16% in March 2023, before experiencing substantial growth. By December 2025, the net profit margin reached 24.30%, signifying improved overall profitability after accounting for all expenses and income.
- Return on Equity (ROE)
- ROE demonstrated a notable decline from 28.54% in March 2022 to 19.24% in March 2023. However, the trend reversed sharply, with ROE increasing to 41.26% by December 2025. This indicates a more effective utilization of shareholder equity to generate profits.
- Return on Assets (ROA)
- ROA mirrored the trends observed in other ratios, decreasing from 11.05% in March 2022 to 8.49% in March 2023. A consistent upward trajectory followed, reaching 19.75% by December 2025. This suggests improved efficiency in utilizing assets to generate earnings.
The consistent and accelerating improvements in all profitability ratios suggest a successful strategic shift or operational enhancements implemented around the second half of 2023. The company appears to be effectively managing costs, improving operational efficiency, and generating higher returns on both equity and assets.
Return on Sales
Return on Investment
Gross Profit Margin
Netflix Inc., gross profit margin calculation (quarterly data)
| 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 | 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 | 12,050,762) | 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 | 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. | 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. | 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. | 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. | — | 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. | 37.76% | 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-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 Q4 2025 Calculation
Gross profit margin = 100
× (Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025)
÷ (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
= 100 × (5,528,141 + 5,346,057 + 5,753,855 + 5,279,654)
÷ (12,050,762 + 11,510,307 + 11,079,166 + 10,542,801)
= 48.49%
2 Click competitor name to see calculations.
The gross profit margin exhibited a fluctuating pattern over the observed period, beginning at 41.62% in March 2022 and concluding at 48.49% in December 2025. An initial decline was followed by a period of recovery and subsequent increases, culminating in a notable improvement by the end of the analyzed timeframe.
- Initial Decline (March 2022 - December 2022)
- From March 2022 to December 2022, the gross profit margin experienced a consistent, albeit moderate, decrease. Starting at 41.62%, it fell to 39.37% by the end of 2022. This suggests potential pressures on input costs or pricing during this period.
- Recovery and Stabilization (March 2023 - December 2023)
- The period from March 2023 to December 2023 showed a recovery in the gross profit margin. It rose from 38.30% in March 2023 to 41.54% in December 2023, indicating a potential stabilization of costs or successful implementation of pricing strategies. The margin fluctuated within this timeframe, but generally trended upwards.
- Sustained Growth (March 2024 - December 2025)
- From March 2024 through December 2025, the gross profit margin demonstrated a sustained upward trend. It increased from 43.06% to 48.49%. This represents a significant improvement in profitability, potentially driven by increased operational efficiency, favorable changes in the cost of revenues, or a shift towards higher-margin products or services. The margin reached 48.49% in both September 2025 and December 2025, suggesting a potential plateau or stabilization at this level.
The gross profit margin’s overall trajectory indicates a strengthening of profitability over the analyzed period. While initial declines were observed, the subsequent recovery and sustained growth suggest effective management of costs and revenues.
Operating Profit Margin
Netflix Inc., operating profit margin calculation (quarterly data)
| 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 | 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 | 12,050,762) | 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 | 29.49% | 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. | 32.03% | 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. | 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. | 41.44% | 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. | — | 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. | 13.78% | 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-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 Q4 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025)
÷ (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
= 100 × (2,956,663 + 3,248,247 + 3,774,694 + 3,346,999)
÷ (12,050,762 + 11,510,307 + 11,079,166 + 10,542,801)
= 29.49%
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 to 26.71% by December 2024. This indicates successful implementation of cost control measures, revenue growth exceeding cost increases, or a combination of both. The margin consistently exceeded 22% throughout this period.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- The operating profit margin peaked at 29.51% in June 2025, before slightly decreasing to 29.14% in September 2025 and 29.49% in December 2025. While a minor fluctuation, the margin remained at a high level, suggesting sustained operational efficiency.
- Overall Trend
- The operating profit margin increased from 20.41% in March 2022 to 29.49% in December 2025, representing a substantial improvement in profitability. The most significant gains were observed between March 2023 and June 2025.
The consistent upward trend in the operating profit margin suggests effective management of operational expenses and/or successful revenue generation strategies. Continued monitoring of this metric will be crucial to assess the sustainability of these improvements.
Net Profit Margin
Netflix Inc., net profit margin calculation (quarterly data)
| 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 | 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 | 12,050,762) | 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 | 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. | 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. | 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. | 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. | — | 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. | 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-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 Q4 2025 Calculation
Net profit margin = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
= 100 × (2,418,521 + 2,546,916 + 3,125,413 + 2,890,351)
÷ (12,050,762 + 11,510,307 + 11,079,166 + 10,542,801)
= 24.30%
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 rate of increase accelerated in the latter part of this phase.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- The upward trend continued into 2025, peaking at 24.58% in June 30, 2025. A slight decrease to 24.05% was observed by December 31, 2025, but the margin remained at a high level compared to earlier periods. This suggests sustained profitability and effective cost management.
- Overall Trend
- The overall trend demonstrates a significant improvement in net profit margin over the entire period. The margin nearly doubled from its lowest point in December 2022 to its highest point in June 2025. This suggests a positive shift in the company’s financial performance and its ability to convert revenue into profit.
The observed increases in net profit margin likely reflect a combination of factors, including revenue growth, cost control measures, and potentially changes in the company’s business model. Further investigation into the underlying drivers of these changes would be beneficial.
Return on Equity (ROE)
Netflix Inc., ROE calculation (quarterly data)
| 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 | 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 | 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 | 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. | 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. | 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. | 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. | — | 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% | 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-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 Q4 2025 Calculation
ROE = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Stockholders’ equity
= 100 × (2,418,521 + 2,546,916 + 3,125,413 + 2,890,351)
÷ 26,615,488 = 41.26%
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 demonstrated a strong return, which subsequently decreased before recovering and ultimately surpassing initial levels.
- Overall Trend
- From March 31, 2022, to December 31, 2022, ROE experienced a consistent decline, moving from 28.54% to 21.62%. This downward trajectory reversed in the following periods. A recovery began in March 31, 2023, and continued through December 31, 2024, culminating in a peak of 35.21%. The ROE experienced a slight decrease in March 31, 2025, before stabilizing and increasing to 41.26% by December 31, 2025.
- Short-Term Fluctuations
- Within the broader trends, quarterly variations were present. For example, a significant drop in ROE was observed between September 30, 2022 (24.57%) and December 31, 2022 (21.62%), coinciding with a substantial decrease in net income. Conversely, a substantial increase occurred between September 30, 2023 (20.47%) and December 31, 2023 (26.27%), driven by a recovery in net income.
- Recent Performance
- The most recent four quarters (March 31, 2024 – December 31, 2025) demonstrate consistently high ROE values, ranging from 30.12% to 41.26%. This suggests a period of strong profitability relative to shareholder equity. The highest ROE value was recorded in June 30, 2025, at 41.07%, followed closely by December 31, 2025, at 41.26%.
- Relationship to Underlying Components
- The fluctuations in ROE closely mirrored changes in net income. Periods of declining net income generally corresponded with lower ROE values, and vice versa. Stockholders’ equity generally increased over the period, which, all else being equal, would tend to depress ROE; however, the increases in net income were sufficient to drive the overall upward trend in ROE.
Return on Assets (ROA)
Netflix Inc., ROA calculation (quarterly data)
| 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 | 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 | 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 | 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. | 22.20% | 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. | 7.34% | 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. | 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. | — | 7.38% | 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. | 6.28% | 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-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 Q4 2025 Calculation
ROA = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Total assets
= 100 × (2,418,521 + 2,546,916 + 3,125,413 + 2,890,351)
÷ 55,596,993 = 19.75%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a generally increasing trend over the observed period, although with some fluctuations. Initial values demonstrated a relatively stable ROA, followed by a period of growth and then a stabilization towards the end of the period.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ROA began at 11.05% and experienced a gradual decline to 9.24% by December 31, 2022. This suggests a slight decrease in profitability relative to the company’s asset base during this timeframe. While the decline wasn't substantial, it indicates a potential weakening in the efficiency of asset utilization.
- Recovery and Growth (Mar 31, 2023 – Dec 31, 2024)
- From March 31, 2023, the ROA began to recover, increasing from 8.49% to 16.24% by December 31, 2024. This represents a significant improvement in profitability relative to assets, indicating enhanced efficiency in generating earnings from the company’s investments. The most substantial increases occurred between March 31, 2024 and December 31, 2024.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- The ROA continued to remain high, fluctuating between 17.80% and 19.75% over the final four quarters. This suggests a sustained level of profitability and efficient asset management. The highest ROA was observed in March 31, 2025 at 17.80%, and the period ended with an ROA of 19.75% on December 31, 2025.
- Overall Trend
- The overall trend demonstrates a positive trajectory in ROA, particularly from the beginning of 2023. The company appears to have improved its ability to generate profits from its assets over the analyzed period. The latter half of the period shows a consistent and strong ROA, indicating effective financial performance.
The fluctuations in net income and total assets likely contribute to the observed changes in ROA. Further investigation into the drivers of these changes would provide a more comprehensive understanding of the company’s financial performance.