Netflix Inc (NFLX)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 17,962,500 14,007,900 12,447,300 12,365,200 9,719,740
Revenue US$ in thousands 39,001,000 33,723,300 31,615,600 29,697,800 24,996,100
Gross profit margin 46.06% 41.54% 39.37% 41.64% 38.89%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $17,962,500K ÷ $39,001,000K
= 46.06%

Based on the provided data, the gross profit margin of Netflix Inc has shown a generally upward trend over the years, reflecting an improvement in the company's ability to generate profit from its core operations.

In December 2020, the gross profit margin stood at 38.89%, indicating that for each dollar of revenue, the company retained $0.38 as gross profit after accounting for the cost of goods sold.

By December 2021, the gross profit margin increased to 41.64%, signaling a more efficient cost management and potentially higher pricing power for Netflix's services.

Although there was a slight dip in the gross profit margin in 2022 to 39.37%, the company managed to bounce back in 2023 with a margin of 41.54%, showcasing resilience and adaptability in a dynamic market environment.

The most significant improvement occurred in December 2024, with the gross profit margin reaching 46.06%, indicating a substantial increase in profitability and potentially enhanced operational efficiency or successful revenue growth strategies.

Overall, the upward trend in Netflix's gross profit margin reflects positive developments in the company's financial performance and operational effectiveness over the analyzed period.


See also:

Netflix Inc Gross Profit Margin