NFLX Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Netflix Inc - Alpha Spread

Netflix Inc
NASDAQ:NFLX

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Netflix Inc
NASDAQ:NFLX
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Price: 722.79 USD -1.03% Market Closed
Market Cap: 310.2B USD
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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
310.2B USD
44%
24%
20%
JP
Amana inc
TSE:2402
1.8B JPY
42%
-8%
-26%
US
Incapta Inc
OTC:INCT
3.8m USD
0%
-75 770%
-62 447%
US
Walt Disney Co
NYSE:DIS
174.9B USD
35%
13%
5%
LU
Spotify Technology SA
NYSE:SPOT
75B USD
27%
3%
3%
NL
Universal Music Group NV
VSE:UMG
43.3B EUR
43%
14%
13%
US
Live Nation Entertainment Inc
NYSE:LYV
26.4B USD
24%
5%
1%
CN
Tencent Music Entertainment Group
NYSE:TME
21.3B USD
39%
22%
20%
US
Warner Bros Discovery Inc
NASDAQ:WBD
18.4B USD
42%
-1%
-29%
FR
Bollore SE
PAR:BOL
16.8B EUR
32%
3%
22%
US
Warner Music Group Corp
NASDAQ:WMG
16.1B USD
48%
15%
8%
Country US
Market Cap 310.2B USD
Gross Margin
44%
Operating Margin
24%
Net Margin
20%
Country JP
Market Cap 1.8B JPY
Gross Margin
42%
Operating Margin
-8%
Net Margin
-26%
Country US
Market Cap 3.8m USD
Gross Margin
0%
Operating Margin
-75 770%
Net Margin
-62 447%
Country US
Market Cap 174.9B USD
Gross Margin
35%
Operating Margin
13%
Net Margin
5%
Country LU
Market Cap 75B USD
Gross Margin
27%
Operating Margin
3%
Net Margin
3%
Country NL
Market Cap 43.3B EUR
Gross Margin
43%
Operating Margin
14%
Net Margin
13%
Country US
Market Cap 26.4B USD
Gross Margin
24%
Operating Margin
5%
Net Margin
1%
Country CN
Market Cap 21.3B USD
Gross Margin
39%
Operating Margin
22%
Net Margin
20%
Country US
Market Cap 18.4B USD
Gross Margin
42%
Operating Margin
-1%
Net Margin
-29%
Country FR
Market Cap 16.8B EUR
Gross Margin
32%
Operating Margin
3%
Net Margin
22%
Country US
Market Cap 16.1B USD
Gross Margin
48%
Operating Margin
15%
Net Margin
8%

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
310.2B USD
32%
14%
21%
20%
JP
Amana inc
TSE:2402
1.8B JPY
140%
-43%
-28%
-22%
US
Incapta Inc
OTC:INCT
3.8m USD
128%
-20 857%
155%
883%
US
Walt Disney Co
NYSE:DIS
174.9B USD
5%
2%
7%
5%
LU
Spotify Technology SA
NYSE:SPOT
75B USD
15%
5%
8%
13%
NL
Universal Music Group NV
VSE:UMG
43.3B EUR
52%
11%
22%
14%
US
Live Nation Entertainment Inc
NYSE:LYV
26.4B USD
-222%
1%
13%
8%
CN
Tencent Music Entertainment Group
NYSE:TME
21.3B USD
10%
8%
10%
9%
US
Warner Bros Discovery Inc
NASDAQ:WBD
18.4B USD
-30%
-10%
0%
0%
FR
Bollore SE
PAR:BOL
16.8B EUR
16%
7%
1%
1%
US
Warner Music Group Corp
NASDAQ:WMG
16.1B USD
141%
6%
19%
10%
Country US
Market Cap 310.2B USD
ROE
32%
ROA
14%
ROCE
21%
ROIC
20%
Country JP
Market Cap 1.8B JPY
ROE
140%
ROA
-43%
ROCE
-28%
ROIC
-22%
Country US
Market Cap 3.8m USD
ROE
128%
ROA
-20 857%
ROCE
155%
ROIC
883%
Country US
Market Cap 174.9B USD
ROE
5%
ROA
2%
ROCE
7%
ROIC
5%
Country LU
Market Cap 75B USD
ROE
15%
ROA
5%
ROCE
8%
ROIC
13%
Country NL
Market Cap 43.3B EUR
ROE
52%
ROA
11%
ROCE
22%
ROIC
14%
Country US
Market Cap 26.4B USD
ROE
-222%
ROA
1%
ROCE
13%
ROIC
8%
Country CN
Market Cap 21.3B USD
ROE
10%
ROA
8%
ROCE
10%
ROIC
9%
Country US
Market Cap 18.4B USD
ROE
-30%
ROA
-10%
ROCE
0%
ROIC
0%
Country FR
Market Cap 16.8B EUR
ROE
16%
ROA
7%
ROCE
1%
ROIC
1%
Country US
Market Cap 16.1B USD
ROE
141%
ROA
6%
ROCE
19%
ROIC
10%

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.

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