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.