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Netflix Inc
NASDAQ:NFLX

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Netflix Inc
NASDAQ:NFLX
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Price: 631.37 USD -0.43% Market Closed
Updated: Jul 27, 2024
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Netflix Inc

Revenue
36.3B USD
Cost of Revenue
-20.4B USD
Gross Profit
15.9B USD
Operating Expenses
-7.3B USD
Operating Income
8.6B USD
Other Expenses
-1.6B USD
Net Income
7.1B USD

Margins Comparison
Netflix Inc Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Netflix Inc
NASDAQ:NFLX
270.8B USD
44%
24%
20%
US
Walt Disney Co
NYSE:DIS
168.5B USD
35%
12%
2%
LU
Spotify Technology SA
NYSE:SPOT
64.1B USD
27%
3%
3%
NL
Universal Music Group NV
VSE:UMG
38.3B EUR
44%
13%
11%
CN
Tencent Music Entertainment Group
NYSE:TME
24.2B USD
37%
19%
19%
US
Live Nation Entertainment Inc
NYSE:LYV
21.5B USD
24%
4%
1%
US
Warner Bros Discovery Inc
NASDAQ:WBD
20.2B USD
42%
-1%
-7%
FR
Bollore SE
PAR:BOL
16.1B EUR
32%
3%
2%
US
Warner Music Group Corp
NASDAQ:WMG
15.5B USD
47%
15%
8%
US
TKO Group Holdings Inc
NYSE:TKO
8.8B USD
69%
30%
-6%
US
Roku Inc
NASDAQ:ROKU
8.5B USD
45%
-9%
-16%
Country US
Market Cap 270.8B USD
Gross Margin
44%
Operating Margin
24%
Net Margin
20%
Country US
Market Cap 168.5B USD
Gross Margin
35%
Operating Margin
12%
Net Margin
2%
Country LU
Market Cap 64.1B USD
Gross Margin
27%
Operating Margin
3%
Net Margin
3%
Country NL
Market Cap 38.3B EUR
Gross Margin
44%
Operating Margin
13%
Net Margin
11%
Country CN
Market Cap 24.2B USD
Gross Margin
37%
Operating Margin
19%
Net Margin
19%
Country US
Market Cap 21.5B USD
Gross Margin
24%
Operating Margin
4%
Net Margin
1%
Country US
Market Cap 20.2B USD
Gross Margin
42%
Operating Margin
-1%
Net Margin
-7%
Country FR
Market Cap 16.1B EUR
Gross Margin
32%
Operating Margin
3%
Net Margin
2%
Country US
Market Cap 15.5B USD
Gross Margin
47%
Operating Margin
15%
Net Margin
8%
Country US
Market Cap 8.8B USD
Gross Margin
69%
Operating Margin
30%
Net Margin
-6%
Country US
Market Cap 8.5B USD
Gross Margin
45%
Operating Margin
-9%
Net Margin
-16%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Netflix Inc Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Netflix Inc
NASDAQ:NFLX
270.8B USD
32%
14%
21%
20%
US
Walt Disney Co
NYSE:DIS
168.5B USD
2%
1%
6%
4%
LU
Spotify Technology SA
NYSE:SPOT
64.1B USD
15%
5%
8%
14%
NL
Universal Music Group NV
VSE:UMG
38.3B EUR
47%
10%
24%
16%
CN
Tencent Music Entertainment Group
NYSE:TME
24.2B USD
10%
7%
9%
9%
US
Live Nation Entertainment Inc
NYSE:LYV
21.5B USD
-88%
1%
10%
7%
US
Warner Bros Discovery Inc
NASDAQ:WBD
20.2B USD
-7%
-2%
0%
0%
FR
Bollore SE
PAR:BOL
16.1B EUR
1%
0%
1%
1%
US
Warner Music Group Corp
NASDAQ:WMG
15.5B USD
152%
6%
19%
9%
US
TKO Group Holdings Inc
NYSE:TKO
8.8B USD
-6%
-2%
11%
11%
US
Roku Inc
NASDAQ:ROKU
8.5B USD
-23%
-14%
-10%
-19%
Country US
Market Cap 270.8B USD
ROE
32%
ROA
14%
ROCE
21%
ROIC
20%
Country US
Market Cap 168.5B USD
ROE
2%
ROA
1%
ROCE
6%
ROIC
4%
Country LU
Market Cap 64.1B USD
ROE
15%
ROA
5%
ROCE
8%
ROIC
14%
Country NL
Market Cap 38.3B EUR
ROE
47%
ROA
10%
ROCE
24%
ROIC
16%
Country CN
Market Cap 24.2B USD
ROE
10%
ROA
7%
ROCE
9%
ROIC
9%
Country US
Market Cap 21.5B USD
ROE
-88%
ROA
1%
ROCE
10%
ROIC
7%
Country US
Market Cap 20.2B USD
ROE
-7%
ROA
-2%
ROCE
0%
ROIC
0%
Country FR
Market Cap 16.1B EUR
ROE
1%
ROA
0%
ROCE
1%
ROIC
1%
Country US
Market Cap 15.5B USD
ROE
152%
ROA
6%
ROCE
19%
ROIC
9%
Country US
Market Cap 8.8B USD
ROE
-6%
ROA
-2%
ROCE
11%
ROIC
11%
Country US
Market Cap 8.5B USD
ROE
-23%
ROA
-14%
ROCE
-10%
ROIC
-19%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

See Also

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