Netflix Inc (NFLX)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 14,007,900 | 12,447,300 | 12,365,200 | 9,719,740 | 7,716,230 |
| Revenue | US$ in thousands | 33,723,300 | 31,615,600 | 29,697,800 | 24,996,100 | 20,156,400 |
| Gross profit margin | 41.54% | 39.37% | 41.64% | 38.89% | 38.28% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $14,007,900K ÷ $33,723,300K
= 41.54%
The gross profit margin of Netflix Inc. has shown a generally positive trend over the past five years. From 2019 to 2023, the gross profit margin has improved from 38.28% to 41.54%. This indicates that the company has been able to effectively manage its cost of goods sold and maintain a healthy level of profitability from its core operations. The trend suggests that Netflix has been able to increase its revenue while controlling its direct costs, which is a positive sign for its overall financial performance. This improvement in gross profit margin reflects positively on the company's ability to generate profit from its streaming services and content production.